The components of the program-target method (PTM) as an instrument of the effectiveness of the formation and execution of budget programs are investigated. The necessity of completing PTM components in Ukraine while planning, financing and budget programs execution in conditions of limited resource is substantiated. The three-component PTM model (“program- target-method“), which serves as a tool for public performance of budget funds, is analyzed and allows to plan, use and control efficiency at the level of the State Budget, at the regional level and at the community level. Compliance with the state’s priority tasks is the key to maximizing the impact of the implementation of the budget program and the comprehensive benefits while simultaneously improving the quality of services.