Optimal allocation of budget funds in ensuring the development of the region with the application of activity-logistic principles
Authors: Samorodov Borys , Polovynko Bohdan 
Published: December 2024

Problem setting. This scientific research is dedicated to substantiating a scientific-practical approach to the optimal allocation of budgetary funds to ensure sustainable regional development based on activity-logistics principles. This approach allows directing the community's financial resources towards priority areas of regional development to enhance their effective use. The object of the study is the allocation of budgetary funds for regional development using activity-logistics principles.

Analysis of recent researches and publications. The problems of optimizing the directions of local budget expenditures under conditions of budgetary constraints and the necessity of managerial decision-making in their distribution have been studied by various scholars, including Furik I., Vartsaba V., Demyanyuk A., Chugunov I., among others. However, in the process of forming and implementing adaptive mechanisms within the system of managerial impacts on the processes of optimal budget resource allocation at the regional level, a regulated and clear approach that enables effective prioritization of funding, considers local needs, and ensures transparency in the use of funds has not been developed.

Purpose of research is to develop a scientific-practical approach for optimizing the allocation of budgetary funds to ensure regional development through the application of activity-logistics principles.

Article’s main body. The article substantiates the necessity of implementing a single-criterion nonlinear/linear programming task for modeling the optimal allocation of financial resources from the local budget. This model takes into account regional conditions, ensuring an optimal balance between expenditures across different directions of regional development. The developed model incorporates key areas of regional sustainability, such as the physical well-being of the population and the safety of the living environment, the state of education and the social environment, as well as the property status of the population. The application of activity-logistics principles in fund allocation contributes to more rational expenditure planning, enhances regional competitiveness, and ensures transparency in resource use. The results of solving the single-criterion linear programming task enabled the determination of the optimal share of budget funds to be directed toward specific areas for regional development. A comparison of the optimal budget share with forecast data for 2023 revealed that actual values are below the optimal level in such areas as: the number of children in psychological rehabilitation centers and shelters; safety of the living environment; population income levels; and other non-monetary payments, benefits, and subsidies.

Conclusions and prospects for development. The practical significance of the results lies in the potential application of the proposed approach by regional authorities to create a mechanism for reallocating budgetary funds to ensure economic development and social stability in the region.