The mechanism of influence of budget levers on the structural restructuring  of the economy

doi:10.26565/2786-4995-2025-1-09

Viacheslav Ivanchenkov Odesa National University of Technology https://orcid.org/0000-0002-7074-3024

DOI: https://doi.org/10.26565/2786-4995-2025-1-09

Keywords: development budget, structural restructuring of the economy, program-targeted management method, innovative development, monitoring and assessment of effectiveness, financial stability of the state

Abstract

The problem of structural restructuring of the economy is becoming particularly relevant in the context of global challenges, technological changes, and the need to ensure sustainable development. One of the key instruments of influence on this process is budget levers, which form financial incentives for the modernization of economic sectors, support for innovation, development of priority industries, and increase in the competitiveness of the national economy. The article aims to substantiate the importance of the development budget and the program-targeted management method in the structural restructuring of the economy and to develop in this context the architectonics of the mechanism of influence of budget levers on these processes. To achieve the set goal, a set of methods was used: dialectical approach, system analysis, comparative, structural-functional, and statistical analysis, which allowed the comprehensive study of the development budget as a lever of structural restructuring of the economy.

The research substantiated the importance of the development budget as the primary source of financing and a tool for implementing priority budget policy areas to ensure sustainable economic growth, innovation, and investment. The role of the development budget in stimulating the structural restructuring of the national economy, increasing the country's competitiveness, and modernizing strategic industries is revealed. It is determined that the effective use of the development budget involves the coordination of public and private investment, as well as the implementation of a clear strategy for long-term socio-economic development.

The need to introduce a program-targeted management method in the system of state regulation of structural transformations is substantiated, allowing for a comprehensive approach to distributing budget resources and achieving specific target indicators. The mechanisms of the influence of public spending, tax policy, and public investments on stimulating economic growth, the development of priority industries, infrastructure modernization, and increasing the economy's competitiveness are revealed. The role of budget levers in ensuring the state's financial stability, stimulating innovative development, and improving the population's well-being is substantiated. The importance of state subsidies, tax incentives, and grant support for developing small and medium-sized businesses and research institutions and introducing "green" technologies is revealed. Particular attention is paid to the need to monitor and assess the effectiveness of using budget resources, which contributes to the transparency and accountability of state financial policy.

The study proposes directions for increasing the effectiveness of budget levers, particularly investments in education, infrastructure development, decentralization of financial resources, strategic planning, and international cooperation. In general, the study allowed us to conclude that the adaptability of budget instruments to changes in the external and internal environment is the key to achieving sustainable economic development and increasing the country's socio-economic stability.

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Author Biography

Viacheslav Ivanchenkov , Odesa National University of Technology

Candidate of Science in Economics, Associate Professor, doctoral student

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