Digitalization in the Processes of Classification of the Country’s Budget Expenditures

Abstract

The study of the processes of planning and accounting of budget expenditures in the context of digitalization and the development of the processes of classification and coding of costs is an important urgent task of improving public financial management. The purpose of the study is to generalize the classification of the country’s budget expenditures to justify the need for changes in the order of planning and cost accounting on digital platforms. The research methods included: analysis and synthesis; regression analysis; modeling; scientific abstraction; logical method. The novelty lies in the proposed logical justification of the provisions of the theory of financial informatics as a synthesis of two scientific disciplines — the theory of finance and the theory of computer science. The author’s view on the digital content of the classification of budget expenditures is proposed, which represents a multi-dimensional hierarchical system for constructing a graph of budget expenditures. Regression models of the dependence of the resource intensity of the conditional classification budget code of expenditures on the quality of financial management of the GRBS have been developed. The conclusions of the study confirmed the hypothesis that the more detailed the differentiation (classification) of budget expenditures, the more opportunities there are for competent organization and management of their financing processes, which is facilitated by the development of ICT. The recommendations are reduced to the need for further research of the scientific and applied provisions of the development and organization of the functioning of digital platforms in the system of public financial management to improve the efficiency of the use of the country’s budget resources. Further development of scientific and applied methodological provisions for the development of the electronic budget is required in order to turn it into a form of the digital budget of the country.