Bulletin of
Vitebsk State
Technological
University

Abstract

The reform of the public finance system of the Republic of Belarus, aimed at increasing its efficiency and management quality, largely affects the country's budget system, including regional budgets. Traditionally, budget analysis is associated with the structure of income and expenses. Of particular practical interest is the matrix, which contains quantitative indicators of revenue streams to finance specific expenses. With its help, you can get detailed information about the directions and amount of funds, as well as assess the state of the budget from the impact of management decisions. The calculation of the «income-consumption» matrix can be carried out in two ways – in the standard version and using economic and mathematical methods. Testing this matrix on the example of the budgets of the regions and the city of Minsk shows that, despite the relatively similar structure of income and expenditure, the distribution of flows is extremely heterogeneous. The resulting matrix has a large dimension and is difficult for visual review. Despite its advantages, it has several disadvantages. Creating a system of end-to-end planning on the basis of regional budget flow matrices can help governments improve financial manageability and intensify the socio-economic situation of a region.

Features of Local Budgets of the Republic of Belarus: Matrix of «Income-Expense» Flows