The economic essence of the budget process and its role in the system of budget allocation

The relevance of this study is due to the need for a deep understanding of the economic essence of the budget process as a tool for allocating budget funds. The budget process forms the basis of the budget system. As part of the budget process, issues of distribution and redistribution of budget funds are resolved, which ensures the functioning of the budget system as a whole. Today, the budget process determines the sources of financial resources, as well as the direction of their expenditure. As part of the financial system, the budget process is aimed at ensuring financing of priority and other sectors of the country at the expense of budget funds and, as a result, ensuring the stability of the country’s economic development. The budget process is an integral element of budget equalization. The dynamism and speed of the country’s economic development, as well as the state of the budget system, and in particular, the state of budgets at various levels, directly depend on the efficiency of the budget process. For the purposes of this study, as well as to deepen the understanding of the economic essence of the budget process, the author of the study analyzed an extensive list of scientific literature and identified the purpose of the budget process. Based on the analysis, the author made an attempt to supplement the goal of the budget process, which made it possible to expand the theoretical understanding of the economic essence of the budget process.