BUDGET PLANNING AS PART OF BUDGET MANAGEMENT

The subject of the work is theoretical and methodological principles of budget planning as part of budget management. The aim of the article is to determine the economic substance of budgeting as part of budget management. The methodological basis of the research is a systematic approach and a system of scientific methods. Results. The economic essence of budget management and budget planning are determined as an element of the budget; defined the characteristic of budgetary mechanism and mechanism of budget planning, shortcomings of the budget planning are specified. Range of application results. Organizing and conducting research in the area of budget planning in shaping key areas of fiscal policy. Conclusions. Budget planning is directed to improving the efficiency, effectiveness and transparency of the public economy sector and is produced by setting fiscal targets, not only for next year, but for the future. Thus budgeting procedure directly determines the nature of the budget process. The main disadvantages of budgeting are outdated methodological framework, the use of normative statistical method, which is based on actual data for the previous year and part of this year and the forecasts of the main macroeconomic indicators, which no longer meets world's best practice.