Programme management for public budgeting and fiscal policy

The implementation of programme-targeted method in the budget process in Ukraine demonstrates the difference between public administration using programs (budget programs) and based on programme management. The budget program has the structure of a programme document, but the content corresponds to the reformatting line-item budget. There are two main problems of application of the programme management methodology in fiscal policy: a sequence of programme objectives and heterogeneity of time. For fiscal policy the selection and distribution of programme objectives (results, effects) in space and time is a key component of management. Despite the complexity and uncertainty of any calculation of the programme product cost should take into account that the sequence of the outcomes affects the total programme result. In this context, the choice of performance, productivity and efficiency indicators based on different time of occurrence and characteristics of the result, product and effect of the financial instruments use to govern financial mechanism as part of the programme management. Results should be evaluated on the ability to become a product that takes effect. The effect of the financial tools application is spaced in time from the result. Efficiency should not be understood as a ratio, but as the correlation with the anticipated cost (value) remote effect, which does not coincide with the result of the programme delivered on time.