Importance Considering higher geopolitical risks, volatile prices for energy resources and fluctuating foreign exchange rates, budgetary spending should be enhanced through performance-based planning and budget performance. The research determines the existing issues of implementing and using the budget through governmental programs in the constituent entities of the Russian Federation. Objectives The research outlines practical suggestions on how performance-based budgeting should be improved. I especially concentrate on issues of improving the regulatory and legislative framework, governing mechanism for implementing governmental programs and amending the Budgetary Code of the Russian Federation. Methods I analyzed principal quality issues arising when governmental programs of the Russian Federation are implemented in the regions, and proposed my own approach to grouping those issues. Furthermore, upon such grouping, I found the main groups of solutions and how performance-based planning and budget performance could be effectuated more efficiently. Results It is practicable to conduct an array of activities to integrate governmental programs into the budgeting process, so to subsequently increase the quality of budgetary planning and performance in the constituent entities of the Russian Federation. Conclusions and Relevance If performance-based budgeting is further developed, it will have a positive effect on the socio-economic development of the constituent entities of the Russian Federation. It is especially relevant as long-term budgetary forecasts are needed. Having analyzed practices of foreign countries and emerging results of an increase in the Russian population’s financial literacy, I herewith contribute to implementing tools for increasing the financial literacy at the governmental and municipal levels.
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