Budget programmes as a tool for ensuring self-sufficiency of territorial communities and an object of accounting

Abstract

The article analyses the state and sources of formation of local budgets of territorial communities of Ukraine. It is established that the development of territorial communities, despite their significant own potential, largely depends on transfers from the state budget. The main substantive characteristic of a self-sufficient community is defined and it is proposed to calculate indicators for assessing its status at two levels, which are formed by own revenues and transfers. The main instrument for creating an effective and efficient mechanism for the use of funds in a community is budget programmes. In order for budget programmes to fulfil their goals and objectives and achieve the expected results, it is important to classify them according to the features that characterise expenditures that address the needs of the community. The study allowed us to identify 10 classification characteristics of budget programmes, which are the key to the scientifically sound development of financial and management accounting in budgetary institutions. In the context of management accounting, budget programmes should be viewed as centres of responsibility for expenditures and their results. Under such conditions, the main provisions of the programme-targeted method of managing budget funds will be fully used. However, in order to introduce management accounting of budget programmes, it is necessary to create information screens to display business transactions on the formation of expenses at the expense of budgetary funds. Taking into account the specifics of the chart of accounts in the public sector, the author substantiates the possibility of keeping records of expenses in the context of budget programmes and the formation of their performance indicators on account 16 «Production» or on a new account with a free code 19 «Expenses for the implementation of budget programmes».