PROGRAM AND PURPOSE APPROACH TO FINANCE PLANNING (Military Budgets taken as an example)

Abstract

A necessity to improve financial planning of military budgets according to bottom-up approach and elaboration of proposals on practical application of methodology for financial planning and preparation of budget on the basis of program and purpose approach are considered in the paper.

The paper proposes to create program and purpose space, in other words organizational, informative and legal medium which makes it possible accurately and timely to give answers to such questions as: what resources, for what purposes and whom they are transferred, how they are spent? Specificity of the program and purpose approach application (military budgets taken as an example) is revealed in the paper.  Determination of requirements in financial resources is broken up in stages.

The paper describes advantages of the program and purpose budgeting realization in finance management of military bodies.

Some moments concerning determination of the requirements in financial resources and events organized on their basis  can be useful and applicable at other budget organizations.