PROSPECTS TO IMPROVE BUDGET POLICY BASED ON INCREASING THE EFFICIENCY OF THE ECONOMIC MECHANISM / ՏՆՏԵՍԱԿԱՆ ՄԵԽԱՆԻԶՄԻ ԱՐԴՅՈՒՆԱՎԵՏՈՒԹՅԱՆ ԲԱՐՁՐԱՑՄԱՆ ՎՐԱ ՀԻՄՆՎԱԾ ՀԱՐԿԱԲՅՈՒՋԵՏԱՅԻՆ ՔԱՂԱՔԱԿԱՆՈՒԹՅԱՆ ԲԱՐԵԼԱՎՄԱՆ ՈՒՂԻՆԵՐԸ

Abstract

The main threat to ensuring fiscal stability in the country is the pressure from various groups and some political forces to increase the level of government spending without taking into account the economic consequences. Therefore, in this case, it is extremely important to introduce appropriate accountability mechanisms, since without them it will be almost impossible to fully assess and implement the relevant guidelines in the current fiscal policy. The article substantiates the point of view according to which, in order to ensure the effectiveness of public expenditure management in Armenia, it is first of all necessary to increase budget discipline, which includes ensuring the clarity of budget documents, the validity of budget expenditures and increasing the feasibility of key indicators of the budget forecast. Budget expenditures should be aimed at implementing the state’s strategic priorities and long-term development goals. In other words, government spending must correspond to economic policy priorities, and the spending management system must ensure inter-sectoral and extra-sectoral redistribution of resources from low-priority to high-priority ones and from low-effective programs to highly effective ones. Thus, medium-term public expenditure programming should be a continuous process and have a policy-planning-budget structure.