Efficiency as the Most Important Indicator of Financing Regional Budget Expenditures

Introduction. The Ministry of Finance of the Russian Federation carries out annual monitoring of the financial situation and the quality of financial management in the federal subjects of Russia. The regions make efforts to improve the efficiency of budget expenditures by using new tools. However, this often leads to the complication of budget processes, which ultimately reduces the level of information openness and transparency of expenditures. The purpose of the work is to conduct a comprehensive assessment of the types, methodological approaches and models of the efficiency of budget expenditures at the regional level and to identify their key effects and limitations of their application based on a comparative analysis of existing practices. Research methodology. The research utilized abstract and logical methods, statistical and analytical ones along with systematization, analogy and generalization. When considering the practical aspects of assessing the effectiveness of regional budget expenditures, the main focus was on the use of statistical and analytical tools. Results. The study systematized the approaches to determining the effectiveness of budget expenditures in the region, including the analysis of the implementation of state programs and national projects. Based on studying the dynamics of financial indicators, the authors identified the key factors influencing the effectiveness of the use of budget funds, as well as the institutional and economic constraints that have to be taken into account when improving the budget management mechanisms. The study of the regional experience of implementation of the action plan for improving the public finances of the Republic of Mordovia demonstrates the possibilities of using the program-targeted financing by the regional authorities for more effective management of budget expenditures. Conclusion. The socio-economic efficiency of regional budget expenditures shows the relationship between the magnitude of the socially significant result achieved and the magnitude of costs of implementing the state program. Efficiency demonstrates how the achieved results and the planned ones correlate in the process of budget planning and financing.