ANALYSIS OF THE CONSOLIDATED BUDGET OF UKRAINE BASED ON HARRINGTON’S DESIRABILITY FUNCTION

Ensuring the transparency of public finances is one of the main tasks in the context of implementing measures to combat corruption not only in Ukraine but also in economically developed countries. A key element of Ukraine's public finances is the consolidated state budget. And if the information on revenues and expenditures has recently been made public, the analytical component of forming the consolidated budget does not attract much attention. The purpose of the study is to analyze the current structure of revenue and expenditure of the consolidated budget, assess its compliance with the gross domestic product, and test the method of determining the integrated indicator of structural quality using the Harrington desirability function, as well as determining the correlation between primary indices of economic development and calculated integrated value. In Ukrainian scientific publications, the analysis of income and expenditure mainly uses standard methods based on specific structures and dynamics of the main items of income and expenditure. Therefore, this article, based on quarterly data for the period from 2010 to 2020, analyzes the causal links that arise not only through the formation of the structure of revenue and expenditure parts of the budget but also the relationship with the gross domestic product and identifies an integrated indicator based on the use of the Harrington desirability function. The obtained integrated hand of the consolidated budget was checked for correlation with the tax burden's indices, the Government's integrity, the freedom to do business, monetary freedom, and the level of perception of corruption. As a result, there is a high level of correlation between the defined integrated indicator of the state of the consolidated budget with the indices of the Government's integrity, the tax burden, and the index of perception of corruption in Ukraine. Further research will conduct an in-depth structural analysis of the revenue and expenditure parts of the state and local budgets and transparency of actions to adjust the approved in the basic version of the targets for revenues and expenditures in terms of consolidated, state, and local budgets.