The method of estimating the regional budgetary process

¹ Shota Rustaveli State University, 6010, Ninoshvili str., 35, Batumi, Georgia
² Karaganda State Technical University, 100027, Mira avenue, 56, Karaganda, Kazakhstan

^* Corresponding author: vladimer.ghlonti@bsu.edu.ge

Abstract

None of the territorial authorities would be able to perform the functions of management of economic and social processes in their territories, to make adequate decisions appropriate in concrete situations, without knowing the status of their territorial budget. An analysis of the budgetary process includes several directions of research characteristic of its different phases. At the stage of budgeting it includes an expert study of the budget in terms of justification of its basic parameters. At the stage of implementation, it includes an operational analysis of the current state budget and a systematic study of trends in the income and expenditure budget. The final stage includes an analysis of the effectiveness and efficiency of use of budgetary resources. On this basis, the paper presents a system of indexes which makes it possible to assess the quality of the regional budget process and to identify the causes of breaches of development. It includes: 1. indexes specific to the structure of regional budget revenues and the dynamics of the relations between them; 2. absolute and relative indexes of the regional budget balance, 3. indexes of the income and expenditure proportionality in the budget; 4. a rhythmic analysis of expenditure from budgetary funds within the current budget; and 5. indexes of regional budget liquidity.