Sources of synergy in state budget digitalization of the Kyrgyz Republic

Abstract

The course towards the “digitalization” of the state’s entire economy which implies a comprehensive coverage with penetration into economic activity and the digital technology system is currently the main course of the post-industrial society. The processes of digitalization and transparency of budgetary relations aim to address issues related to the efficiency of budget spending and the optimal functioning of the state apparatus. Transparency of the given processes helps to reduce transaction costs, tackle corrupt practices and contribute to saving budgetary and other resources. Thus, digitalization of the state budget significantly increases the economic effect as a result of the sharing of individual elements of the system. The expected positive results in the digitalization of budgetary processes in the Kyrgyz Republic are classified as follows: savings on material costs; ensuring a minimum space in the functioning of public finances; reduction of time losses in obtaining, processing, storing and transmitting the relevant data; increasing the adoption of high-quality management decisions; EDS owner identification, etc. Therefore, the action of all these positive elements will become a source of a synergy effect in the process of the state budget digitalization.