The economical classification of expenditures: national and international experience

This article demonstrates the importance of the economic classification of expenditures during applying it in the budget process. A comparison between the structure of articles of the national and international economic classification of expenditures. In the national classification were identified certain categories of expenditures that differ from the international classification. The economic essence of expenditures for transfers and subsidies and their significance for budget indicators of a certain region are analyzed. It is proposed to allocate in the structure of the national classification certain categories – "Transfers" and "Subsidies", that will facilitate the harmonization of the public finance management system in Ukraine with the norms and rules adopted at the international level and the comparability of reporting data on the implementation of the budgets of Ukraine and other countries.