Method of evaluation of efficiency of expenses of public institutions

The article gives comparison of interpretations of the concept of efficiency by different authors, as well as analyzes its interaction with the notion of rationality. One of the key objectives of the research is systematization and grouping of the indicators to measure effectiveness of expenditures of the state institutions. The method of estimation of efficiency of budget expenditures based on calculation of deviations of actual values from the targeted ones in such areas as: quality of management of budget expenditures, direct and final results of financial activities of state institutions. Presented evaluation of the cost effectiveness of public institutions is intended for identification of inefficient spending of the budget funds for the purpose of further elimination of shortcomings in the planning and distribution of the public expenses.

efficiency, public expenses, efficiency of expenditure, budget expenditures, saving, inefficient spending, performance evaluation, evaluation indicators, actual value, planned value