Importance Given the instability of the global economy and financial system, the issues of maintaining fiscal sustainability and good governance of public finance are particularly relevant for all countries. A solution to these issues directly relates to the budget process improvement based on the principles of effective budgeting. Objectives The objectives of the study are to identify best practices and negative situations in the improvement of budget process in foreign countries, and to identify the key points affecting the successful management of State and municipal finance. Methods Using the principles of dialectic cognition, scientific methods and techniques of knowledge (from abstract to concrete, idealization, formalization, comparison, simulation, induction and deduction methods), I analyzed different approaches, models and tools that are used for budgeting improvement in foreign countries. The work defines the specifics of their use in countries with developed market economies, transition economies and in developing countries, and reveals common reasons that hinder reforms. Results I systematized particular implementation approaches and models of reforming the budget process in foreign countries based on the principles of good governance of public finance. The study presents a unique vision of certain disadvantages of both the models and the mechanism of their practical implementation. Due consideration of the disadvantages will help avoiding a number of problems when improving the budget process in the Russian Federation. Conclusions and Relevance I conclude that under current conditions, the models and approaches to reforming the budget process in foreign countries focus on achieving financial stability, fiscal sustainability, efficiency and responsibility for the use of budget funds. I emphasize that complete and effective implementation of a selected model of the budget process reform depends on a number of factors, including the model of public finance management, the mechanism of interaction between the budget process participants and their ability to adapt to expected changes, and comprehensive and consistent implementation of scheduled activities. It is also necessary to take into account national, political, social and other factors.
Keywords: reform, budget process, efficient budgeting, performance budgeting, efficient budgeting tools, State program, public services, new public management, good governance, public finance
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