Problems of program-oriented method of planning and financing of budget expenditures in Russia

Program-oriented method of planning and financing of budget expenditures has been actively used in Russia for the past decade, particularly while exercising of federal programs. Currently, the Russian government is preparing to finance 97% of federal budget expenditures in accordance with the program-oriented method. However, along with the obvious advantages of this method, its performance in the Russian Federation has identified a number of problems. Author analyses in this article the Russian experience of program-oriented planning and financing of the budget expenditures, evolves the basic problems, provides recommendations to resolve them.

program-oriented budgeting, performance budgeting, evaluation of the effectiveness and efficiency of public spending