The article deals with the issues of effective usage of budgetary funds, which are particularly relevant, since insufficient legislative regulation of this term constantly generates numerous disputes between state and budget institutions that are the objects of control, and financial control bodies. The author of the article believes that inefficient use of budget funds, without being formally a budget violation, carries no less threat and damage to the state than any other punishable budget violation. Inefficient use leads to an empty and purposeless waste of public funds, which can have a negative impact on the budget system of the Russian Federation. A detailed analysis of this issue makes it obvious that the existing legislation does not correspond to the goals and strategy of socio-economic development of the Russian Federation.