PREDNOSTI I NEDOSTACI TRADICIONALNOG BUDžETIRANjA KAO MEHANIZMA FINANSIJSKOG PLANIRANjA JAVNIH USLUGA

Abstract

The efficiency and effectiveness of the production system of public services are largely conditioned by the characteristics of their financial planning model. Traditional (incrementalist) public spending planning, as a still valid model of public budgeting, is not fully able to respond to the growing needs of mature democratic societies in terms of ensuring the transparency of public spending and, more importantly, is not aligned with the need for precise evaluation of economy, efficiency and effectiveness public placements. This paper will analyze in detail the basic shortcomings of traditional financial planning of public spending, as well as the advantages of this mechanism that still maintain its popularity.