Functions and principles of budgeting in organization’s management system

The article examines the main goals and objectives of budgeting, the relationship between such concepts as ‘budget’ and ‘budgeting’. The functions and principles of budgeting are systematized and supplemented, and their relationship with the functions of management and financial planning is established. It is shown that during the implementation and organization of the budgeting system special place belongs to the principles of orientation of the budget system on financial structure, ensuring unity of budgetary forms, suitability of information of budgets for management decisions, integration with information technologies. The effectiveness and quality of planning and forecasting are determined by the implementation of the principles of direction, multiplicity, flexibility, and participation. The principles of planning, objectivity and responsibility associated with its control function play a special role in budgeting processes.