The essence of budget formation and execution in the system of financial and economic relations is revealed, which consists in application of effective budget mechanism taking into account use of basic principles of adaptive budget architecture, ensuring balance and stability of budget system, institutional environment of budget policy formation and implementation opportunity to ensure the effectiveness of socio-economic transformations. The provisions on the formation of priority areas of budget policy, budget planning for the medium term in terms of departmental classification, taking into account the functions and tasks of the main managers of budget funds, institutional components of the budget space, which will improve the quality of budgetary mechanism, budget relations. The basic principles of budget formation and execution are determined, which are based on a set of budget instruments taking into account institutional transformations of the public finance system, changes in the budget and tax environment, long-term budget planning, which will strengthen budget policy in the field of revenues and expenditures. An institutional approach to budget formation and implementation in the system of financial and economic relations is developed, which is based on the dialectical unity of budget policy goals to ensure social development, taking into account the stability, dynamic budget balance, strengthening the impact of budgetary mechanisms on economic growth based on economic cyclicality -economic development of the country. The experience of countries with developed and transformational economies in budget formation is generalized and systematized.
Approaches to the formation of budget revenues have been improved, taking into account the combination of fiscal and regulatory functions of taxes, the dynamics of macroeconomic indicators, the principles of budget transparency, the stability of the financial and economic system; provisions on the formation and implementation of budget policy in the field of budget expenditures based on the use of planned and actual indicators of total budget expenditures to gross domestic product, the structure of the expenditure side of the budget, taking into account the priorities of social development; approaches to budget policy in the field of budget deficit, public debt based on the transformation of the financial and economic space; provisions on the budgetary mechanism of economic growth, based on the development of the system of state financial and economic institutions, the effective use of the budget and tax potential of the country; approaches to the development of program-targeted method of budget planning to ensure the strengthening of the relationship between budget allocations and the implementation of established social goals and objectives. functioning of these institutions of providing the population with sufficient quality of public goods; provisions on long-term budget planning at the level of the main managers of budget funds as a mechanism for coordinating budget policy and priorities for the development of the relevant sector of the economy; approaches to evaluating the effectiveness of budget programs, improving the effectiveness of public financial control, public procurement; provisions on the formation and development of the system of budget formation and execution.
