Public Financial Management Systems Research Articles

Applying spending review theory to developing countries: The case of South Africa

ABSTRACT The seminal spending review (SR) theoretical framework by Catalano & Erbacci [2018. A theoretical framework for spending review policies at a time of widespread recession. OECD Journal on Budgeting 17(2), 9–24] draws on the cutback management and related academic literature to articulate the first theory for explaining the ability of medium-term SRs conducted after the global financial crisis of 2008 to effect targeted savings. This literature is however dominated by advanced economies with sophisticated public financial management systems. Comparatively little attention, however, has been paid to theoretical perspectives on developing countries, like South Africa. This article applies this theoretical framework by Catalano and Erbacci to the South African SR initiative in order to interrogate its theoretical and empirical relevance. Proposals are made for enhancing the operationalisation of the organisational and process dimensions of C&E’s theoretical framework to lay a foundation for future empirical research and its policy implications for South Africans SRs are explored.

Fiscal Policy for Inclusive Growth. A Case Study of Myanmar

Following decades of isolation under military rule, Myanmar initiated historic political reforms since 2011, but faces challenges translating liberalization into broad-based advancement. A dynamic stochastic general equilibrium modelling approach estimated on Myanmar data is used, with simulations quantifying potential growth and distributional impacts of strategic government expenditure reallocations towards infrastructure upgrading, agricultural investments, expanded social transfers and progressive tax reforms. Results indicate sustained infrastructure and rural productivity spending have high output multipliers while well-targeted transfers reduce income inequality. However, institutional absorptive capacities condition realization of social returns. Complementary governance enhancements like project oversight and competitiveness in public investment allocation prove vital. Regional peer benchmarking provides comparative lessons. Altogether, evidence-based fiscal reorientation towards addressing pressing human capital, rural-urban and firm competitiveness constraints can accelerate inclusive growth in Myanmar if pursued prudently. Sustainable expansion requires strengthening public financial management (PFM) systems and results monitoring.

Effectiveness of the Implementation of Fiscal Federalism at the Local Level

This study was carried out in the initial stage of the implementation of federalism which has adopted fiscal federalism. The current public finance management system adheres to intergovernmental fiscal transfer. During the study, civil servant adjustment by the federal government was ongoing. This study examines effectiveness of the implementation of fiscal federalism at the local level. It further analyses local level’s own source revenue. Following the Constitution of Nepal (2015), Local Government Operations Act (2017) defined Metropolitan, Sub-Metropolitan, Municipality, and Rural Municipality as Local Levels as well as Local Governments. The qualitative method was adopted to accomplish the study for fulfilling the effectiveness of implementation of fiscal federalism. Available literature and data were analysed and interpreted with relevant themes. Besides, some quantitative data have been presented for analysing the own source revenue of the local levels. The study found it interesting that not only the federal, and province governments transfer the budget to the local government, but the local governments also collect and share the budget for province governments. It seems top down transfer and bottom up sharing. Besides some confusion, conflict, and mismanagement, the effectiveness of implementation of the fiscal federalism seems positive because local governments are the nearest and dearest for people. Moreover, the own source revenue collection practice and tendency show that it will increase in future.

Доступность бюджетных инвестиций для регионов при программно-целевом подходе к формированию бюджетов (на примере муниципальных образований Архангельской области)

The article is devoted to the study of the availability of investment funds for the regions of investment funds of state development programs in the context of the program-targeted approach to budget formation. The use of program-targeted budgeting methods undoubtedly opens up extensive opportunities for optimizing the public finance management system, but the management tools and implementation mechanism at the regional level have not yet been sufficiently developed, which reduces the effectiveness of their application. The paper evaluates the uniformity of distribution of funds of the Targeted Investment Program of the Arkhangelsk Oblast for the period 20172021 between four districts that are similar in their parameters, as well as the distribution of budget investments within the framework of inter-budget transfers to local budgets of the Arkhangelsk Oblast for the period 20212023. The process and principles of a program-targeted approach to strategic planning and management of the public finance system as the main tool for improving the efficiency of budget expenditures are considered. The methods used in the study include analyzing the dynamics and structure of budget investment distribution, drawing conclusions on the basis of the obtained data about the uniformity of funds distribution and investment accessibility for the regions. This article can be useful for assessing the availability of budget investments when using the program-targeted approach to budget planning, as well as for developing an effective mechanism for implementing program-targeted budgeting approaches in the budget process at the local and regional levels.

Инструментарий зеленого бюджетирования и практический опыт его использования

Russia is following the course of implementation of the Sustainable Development Goals and shaping its climate strategy. In March 2023, Russia approved the National Action Plan for the second phase of adaptation to climate change for the period until 2025. The public budget is the main tool for achieving the political goals of the government, therefore, in order to implement the public policy in the field of environmental protection and counteraction to climate change, green budgeting is being introduced. The purpose of this article is to actualize the ideas of green budgeting, systematize such budgeting tools within the framework of the general concept of green budgeting, taking into account foreign experience of their use. The author uses general scientific methods, in particular methods of analysis and synthesis of relevant scientific literature, legal information and publications of international organizations. The following conclusions are made: The public budget system is able to minimize those economic activities that are adverse for the environment by creating the possibility of tracking, analysis, evaluation and adjustment of budget expenditures using the tools of green budgeting. The latter does not require restructuring of the public finance management system; the prerequisite for its practical use is the presence of environmental care among the state national goals.

Міжнародні стандарти статистики державного боргу та їх впровадження в систему управління державними фінансами України

Міжнародні стандарти статистики державного боргу та їх впровадження в систему управління державними фінансами України

Coverage, delays and implementation challenges of ‘Direct Benefit Transfer’ in the National Tuberculosis Elimination Programme – A mixed methods study

IntroductionFood insecurity and undernutrition both contribute to the large tuberculosis burden in India. Indian government rolled out the direct benefit transfer (DBT) programme “Nikshay Poshan Yojana” on a national scale on April 1, 2018 largely to provide nutritional support. Hence, it was proposed to take up this study in Western Maharashtra (Pune district) to study the coverage, delays and implementation challenges of ‘Direct Benefit Transfer’ in the National Tuberculosis Elimination Programme as there have only been a limited number of studies conducted regarding the same. MethodologyThis mixed methods study was conducted at Tuberculosis Units (TUs) under District Tuberculosis Officer (DTO) in Western Maharashtra (Pune district) for the duration August 2020 to September 2022. A total of 3373 participants were included for the quantitative component. For qualitative component In-depth interviews of key informants (healthcare providers involved in the implementation of Direct Benefit Transfer) and Focus Group Discussion (FGD) for patients and care givers was done and explored using thematic analysis. ResultsThe total coverage was found to be 76.81%. The health providers reported staff related challenges (overburden and non-cooperative staff), bank related issues (local and cooperate banks not involved in the Public Financial Management System (PFMS) loop and lack of bank account), patient related issues (fear of being scammed), the DBT process (lengthy and complex) and software related issues as major hurdles involved in the scheme's implementation. The challenges to the implementation of DBT reported by the beneficiaries (TB patients) were lack of awareness and disbelief about the scheme, bank related issues (lack of bank account and necessary documents to open account), financial challenges (job insecurity, loans), physical challenges (weakness) and delays in delivering the benefit due to software errors. ConclusionIn the present study the DBT coverage was very encouraging. The common challenges identified by the staff members and patients in the implementation of the scheme were lack of awareness about the scheme, bank related issues and software issues. To increase the coverage of DBT, it is vital that these issues be resolved.

Internal control and financial viability: the moderating role of leadership qualities on management of income-generating activities at Indonesian higher education

PurposeThe implementation of income-generating still faces problems, such as the lack of well-established internal control and differences in implementation in each unit. This study aims to analyze internal controls, financial viability (FV) and leadership qualities (LQ) in the implementation of income-generating in Indonesian higher education.Design/methodology/approachThis study is quantitative and uses a causal approach. The population of this research is the unit leader and the person in charge of the activity that generates income, with a total sample of 111 people. The sampling technique used is simple random sampling. Data were analyzed using moderation regression analysis (MRA) with the WrapPLS (partial least square) analysis tool.FindingsThe results indicate that internal control and FV significantly affect the management of income-generating. The existence of LQ as a moderating variable can moderate and weaken the influence of internal controls and FV on the management of income-generating. In this finding, the unit leader and the person in charge of activities that generate income in higher education need to improve managerial skills, including ethics, uphold integrity, clear vision, quick adaption, honestly and trust so that the management of income-generating can achieve higher education goals more effectively and efficiently.Research limitations/implicationsThis research shows that universities need to create a good environment to build an ecosystem that can improve the management. The university encourages the good management by strengthening the leadership. However, the research has a limitation: the study was only conducted in one state university.Originality/valueThe implementation of income generation in the public financial management system of legal entity universities requires accountability for sources of income so that internal controls and the role of finance are needed to ensure the continuity of universities.

The theoretical and practical foundations for the implementation the "green" budgeting principles

The subject of the study is the conceptual foundations of the implementation of the principles of "green" budgeting. The purpose of the article is to study the peculiarities of the formation of "green" (ecological) budgeting in the developed countries of the world and countries with a transformational economy, to provide suggestions on the possibilities, advantages and risks of introducing the principles of "green" budgeting in the budget process in Ukraine. Method or methodology of research. In the article, a set of methods of scientific knowledge was used to solve the tasks, which made it possible to realize the conceptual unity of scientific research. System method, method of generalization, methods of analysis and synthesis, comparison, scientific abstraction are applied. Results of the article.. The article discusses approaches to defining the concept of "green" budgeting, environmental labeling of budget expenditures. The factors that determine the success of achieving the Sustainable Development Goals and the role of "green" budgeting in this process are systematized. The need to revise state policy measures in the sphere of solving issues of social, economic and environmental direction, increasing the level of people's well-being and reducing social inequality in the form of leveling environmental risks and ensuring conditions for the harmonious development of ecosystems as a component of achieving the Sustainable Development Goals by 2023 has been identified. The peculiarities of the introduction of "green" budgeting in the countries of the European Union and the member countries of the Organization for Economic Cooperation and Development were studied, and the level of "greening" of the budget system and budget policy was determined. Field of application of results. The results of the study can be used in the process of reforming the public finance management system in terms of improving the budget process through the gradual introduction of environmental labeling of budget expenditures. Conclusions. Green budgeting can have a broader scope related to a range of environmental goals and starts by labeling budget items related to a narrower range of environmental goals, then these methods provide a useful basis for creating markers related to other environmental goals . The primary tasks of the introduction of environmental labeling are to understand the purpose of such budgetary policy instruments, in particular, to understand the area of ​​problems that the government is trying to solve with such an innovation, to assess whether green labeling is a valid solution to environmental problems, as well as the stage of the budget process at which the introduction of green labeling should begin.

Managing Public Funds: The Core Concepts, Key Challenges, and Future Prospects

This section provides an economic rationale for the rising focus on public financial management (PFM). The study delves into the heart of PFM by comparing and contrasting the public and private sectors' approaches to financial management and analysing. The challenges with evaluating PFM quality are examined as well as other problematic aspects of the PFM system's operation. Measures of PFM quality include how successfully it promotes its stated societal purpose of improving people's lives and how efficiently it does it. The declaration demonstrated that the size of government expenditures does not indicate the efficiency of the PFM system. The aspects that affect the PFM system's efficiency are exposed. Accrual-based IPSAS-based state accounting systems highlight the value of fiscal data in informing policy choices. The conventional wisdom behind the construction of economic data is challenged and an alternative is proposed.

Forecast of the digitalization impact on public financial management

Modern digital technologies based on artificial intelligence and big data have a significant impact on many areas of the socioeconomic life of society. At present, digitalization has not affected the public financial management system to a small extent. However, this particular area has a high potential for the use of big data and artificial intelligence, as it is based on significant amounts of information, including unstructured information. At the same time, the process, mechanism and forms of the digital technologies impact on public finance management have been little studied in the scientific literature. The paper forecasts changing in the public financial management system that may occur under the influence of digital technologies in the medium and long term. The authors used a methodical approach based on extrapolation for forecasting. Nowadays, digital technologies have significantly influenced some sectors of the socio-economic people’s activity. The forms and mechanisms of such influence had been extrapolated to the public financial management system and, primarily, to various stages of the budget process.

Functioning of participatory budgets: current state, modernization trends and modeling in the context of reforming public finances

Introduction. A necessary condition for the reconstruction of Ukraine from the consequences of the destruction caused by the Russian armed aggression, the COVID-19 pandemic, and the formation of a resource-saving inclusive economy on the basis of permanent socio-economic growth is the effective functioning of the public finance management system, the basic element of which is budgeting technologies. Participatory budgeting is their important component, and participatory budget is one of the innovative tools for involving citizens in the distribution and use of budget resources, democratization of the budget process at the local level to stimulate the development of territorial communities and regions.Purpose. The purpose of the article is to develop theoretical and methodological foundations and practical approaches to the functioning of participatory budgeting, to identify the main trends in the development of participatory budgeting and to substantiate the directions of its modernization in the context of reforming public finances.Methods. To achieve the goal defined in the study, general scientific methods were used: analysis and synthesis, induction and deduction (for the formation of the theoretical foundations of participatory budgeting); functional and statistical analysis, analogy, systematization, formalization, measurement, modeling (to assessthe practice of functioning of budgets) participation); generalization, comparison, optimization, argumentation, logical methods (for developing directions for improving participatory budgeting).Conclusions. A theoretical approach to the disclosure of the essence of participatory budgeting has been formed, an algorithm for its implementation at the level of the territorial community is given and the advantages of functioning of participatory budgets are outlined. The practice of using participatory budgeting in Ukraine at different levels of the budget system is analyzed, a number of problems are identified, among which the most important is the choice of allocation directions, use of participatory budgeting resources and criteria for their optimization, and approaches to their solution are proposed. A scientific approach to optimizing the expenditures of the participatory budgeting using economic and mathematical modeling has been formed.Discussion. The prospects for further research are the need to solve the problems of effective use of budget resources of local self-government bodies in the conditions of war and to find ways to ensure compliance of priority directions of expenditures of participatory budgets with the strategic goals of socio-economic development of territorial communities and regions.

MODERNIZATION OF ACCOUNTING OF FINANCIAL RESOURCES IN THE PUBLIC SECTOR UNDER THE CONDITIONS OF THE REFORM OF THE PUBLIC FINANCE MANAGEMENT SYSTEM AND STRENGTHENING OF FINANCIAL SECURITY

Introduction. Reforming the public finance management system, including modernization of the accounting of financial resources and strengthening the financial security of economic entities in the state sector, is one of the most important problems of the Ukrainian government, as well as domestic scientists and practitioners. The scale of such reformation is very large and diverse. They include all components of the economic system of the state, aimed at minimizing the negative aspects of the current management system, expected risks and cover a wide range of practical actions. This would allow to overcome all the difficulties caused by objective, subjective, internal and external factors and contribute to the integration of the Ukrainian economy into the EU. The purpose of the article is to reveal the modern theoretical, methodological, and practical foundations of modernizing the accounting of financial resources in the state sector in the context of reforming the public finance management system and strengthening the financial security of economic entities, identify positive, negative, and problematic consequences and, based on them, propose development directions and expected implementation results this strategy. Methods. The work uses dialectical, metaphysical, historical, structural-logical, institutional, functional, and behavioral approaches. The research results are obtained through the application of methods of generalization, analysis and synthesis, induction and deduction, comparison, ascent from the concrete to the abstract and from the abstract to the concrete, estimation, prediction, and others. Results. The relationship between the reformation of the public finance management system, the directions of modernization of accounting in the public sector, financial resources and the financial security of economic entities is revealed. The strategic goals of the reform of the public finance management system and ways of realizing these goals are described. The most important stages of modernization of the accounting and financial reporting system in the state sector, its goals, approaches to clarifying the content of financial resources, in particular, in the state sector as an object of accounting, are considered. A significant place is devoted to the characteristics of the financial security of economic entities and the directions of its implementation in the state and communal sectors. The most important expected risks that can prevent the implementation of strategic tasks, as well as positive results that can be obtained as a result of the implementation of systemic measures to reform the public finance management mechanism and its individual components, have been formed. Conclusions. Substantiated are proposals for reforming the directions of modernizing the accounting of financial resources in the public sector in the context of reforming the public finance management system and strengthening the financial security of economic entities. With their effective implementation, they will help accelerate the pace of the country's socio-economic development, improve the living standards of citizens and integrate Ukraine into the European Economic Community, which is the strategic goal of the Ukrainian state.

Аграрний сектор економіки України: візія фінансового контексту досягнення цілей сталого розвитку

The agricultural sector of the economy has a great potential to influence various aspects of sustainable development, such as economic stability, social equality, and ecological balance. However, one of the critical problems in achieving the Sustainable Development Goals is the limitation of financial resources, which significantly narrows the opportunities of the agricultural sector and holds back its post-war recovery based on the green economy. The article's purpose is to typologize the theoretical and methodological foundations of the sustainable ontogenesis of the agricultural sector of the Ukrainian economy, taking into account the mutual influences and interdependencies between development and the financial and regulatory context of achieving the agro-oriented Sustainable Development Goals. The article analyses tasks and indicators and presents the empirical basis for achieving the Sustainable Development Goals in the context of overcoming hunger and developing agriculture adapted to the realities of Ukraine. The problems of the agricultural sector of the economy, which the government tried to solve during the 2000-2020s, were identified, and the interdependence between these problems and the agro-oriented Sustainable Development Goals was established. The financial context of programs supporting the sustainable development of the agrarian sector of the economy in the pre-war period was determined, and their content, advantages and disadvantages were systematically characterized. The fact of systemic lagging of niche-sectoral financial support programs for agricultural commodity producers from reforms in the public finance management system and its derivatives has been revealed. The study results indicate that Ukraine's agricultural sector is currently at the crossroads between stability and sustainable development, with the former being predominant. In this regard, it is necessary to ensure the transition from state support to state aid (for specific branches of the sector), from state support for crop production to state support for livestock production, and from infrastructure financing to the development of the Institute of Rural Construction.

An Overview of Nigerian Macroeconomic and Financial Development

The Nigerian economy is one of the biggest in Africa. It has been based mainly on the petroleum industry since the late 1960s. Since 1973, a series of rises in the price of oil has led to a rapid expansion of the transportation, building, manufacturing, and government services industries [1, 2, 3]. Due to the considerable migration of rural residents into the more extensive urban areas, agricultural productivity became so stagnant that cash crops like cotton, peanuts, and palm oil lost their significance as export commodities [4, 5, 9]. After the pandemic-caused recession in 2020, the Nigerian economy improved, but macroeconomic stability declined. The inflation rate in Nigeria is very high, and millions of the Nigerian population lives in poverty due to global commodities shocks, the currency's falling value, trade difficulties, and monetization of the deficit [6, 7, 8, 10]. The rising oil price has had no positive impact on the Nigerian economy since 2021. The country's oil revenue growth is declining due to subsidies on gasoline, and the oil output rate is badly affected [11, 12, 14]. Over 40% of the Nigerian population in 2018 lived in poverty, and over 20% is badly affected and vulnerable. Researchers forecast that over 7.6 million Nigerian are likely to live in poverty between the years 2019 and 2024 because of the rapid population growth in the country [15, 16, 17]. The Nigerian economy is projected to grow by an average of 3.3% in 2022–2024. Still, risk factors like drops in oil production and increased insecurity are significant threats to the country's economic growth [19, 20]. Along with persistent budgetary and debt pressures, high inflation contributes to uncertainty. Furthermore, continued currency shortages and reduced liquidity could impact non-oil sector economic activity and jeopardize macroeconomic stability [21, 22, 13]. Strategic Revenue Growth Initiative (SRGI) Nigeria has made some socioeconomic progress recently. However, the World Bank's 2020 Human Capital Index categorized Nigeria as 150 out of 157 in human capital development [23, 24, 18]. The Nigerian government needs to modify the economy, improve weak institutions and public financial management systems and resolve governance issues to achieve remarkable economic growth. [25, 26]. The constant high levels of inequality in terms of income and opportunities contribute to poverty in the country [27, 28]. Unemployment, social and regional disparities, and political discontent also contribute to a lack of economic growth and poverty. Over 8 million households have been pushed into poverty due to the negative impact of 2020-2022 high inflation [29, 30]

Automatic SDG budget tagging: Building public financial management capacity through natural language processing

Abstract The “budgeting for SDGs”–B4SDGs–paradigm seeks to coordinate the budgeting process of the fiscal cycle with the sustainable development goals (SDGs) set by the United Nations. Integrating the goals into public financial management systems is crucial for an effective alignment of national development priorities with the objectives set in the 2030 Agenda. Within the dynamic process defined in the B4SDGs framework, the step of SDG budget tagging represents a precondition for subsequent budget diagnostics. However, developing a national SDG taxonomy requires substantial investment in terms of time, human, and administrative resources. Such costs are exacerbated in least-developed countries, which are often characterized by a constrained institutional capacity. The automation of SDG budget tagging could represent a cost-effective solution. We use well-established text analysis and machine learning techniques to explore the scope and scalability of automatic labeling budget programs within the B4SDGs framework. The results show that, while our classifiers can achieve great accuracy, they face limitations when trained with data that is not representative of the institutional setting considered. These findings imply that a national government trying to integrate SDGs into its planning and budgeting practices cannot just rely solely on artificial intelligence (AI) tools and off-the-shelf coding schemes. Our results are relevant to academics and the broader policymaker community, contributing to the debate around the strengths and weaknesses of adopting computer algorithms to assist decision-making processes.

International Standards of Public Debt Statistics and Their Implementation in The Public Finance Management System of Ukraine

International Standards of Public Debt Statistics and Their Implementation in The Public Finance Management System of Ukraine

International Standards of Public Debt Statistics and Their Implementation in The Public Finance Management System of Ukraine (Part 2)

International Standards of Public Debt Statistics and Their Implementation in The Public Finance Management System of Ukraine (Part 2)

DIRECTIONS FOR THE DEVELOPMENT OF INFORMATION TECHNOLOGIES IN THE MANAGEMENT OF PUBLIC FINANCES, STATE FINANCIAL RESOURCES AND FINANCIAL SECURITY OF PUBLIC SECTOR ENTITIES

Purpose. The aim of the article is to disclosure the theoretical and practical foundations of the modernization of information technologies in the management of public finances, state financial resources and financial security of public sector economic entities, identification of positive, negative, problematic aspects of the study and, based on them, the formulation of the main conceptual approaches, vectors of their development in the conditions of market transformations and integration of Ukraine's economy into the EU. Methodology of research. In the process of scientific analysis, a number of scientific approaches, general scientific, specifically scientific and special methods were used. The dialectical approach is based on the use of categories and laws of dialectics, the process of using information technologies in the management of public finances. The institutional approach was focused on the study of the relationship between the strategic goals and directions of their implementation in the Strategy for the Digital Development of the State Finance Management System. The comparative approach made it possible to identify similar and different features when explaining the essence of information support in the management of public finances. The system approach made it possible to consider financial resources, financial security as a whole set of individual constituent parts that interact with each other and make up a single whole. The analytical method was used in the review of the literature on the management of state financial resources. The generalization method made it possible to form conclusions and recommendations as a result of the research. Findings. The development of the public finance management system and the strategic foundations of the digital development of digital transformations and the digital system of public finance management, state financial resources and financial security of public sector economic entities, the stages of this development are considered. The interrelationship between the strategic goals and directions of their implementation in the Strategy for implementation of digital development, digital transformations and digitalization of the state finance management system for the period until 2025, as well as the interrelationship between the strategic goals and directions of implementation of the Strategy for the Reform of the State Finance Management System for 2022-2025 years. The structural and logical scheme of state financial resources management and the mechanism of financial security management of public sector economic entities are characterized. The expected results of the implementation of the strategic tasks of reforming the system of digital management of public finances and financial security are proposed. Originality. As a result of the study, the approaches to the interpretation of the essence of financial resources of the public sector, the determination of the management of public financial resources have gained further development. A refined definition of the financial security of public sector economic entities, approaches to the formation of a mechanism for managing the financial security of state financial relations entities are proposed. Practical value. The conclusions and recommendations contained in the article have a theoretical basis and practical significance. Proposals related to the organization of the management of state financial resources and the financial security of public sector economic entities, the use of new modern digital and information technologies in the process of this management can be used in the practical activities of enterprises, organizations, institutions of state and communal ownership. Key words: public sector, financial resources, financial security, economic entities, financial challenges, financial threats, financial risks, digital transformations, information technologies.

Commercialization of Public Finance Management: Modern realities and Organizational and legal Modernization

The subject of the research is a substantive study of the modern realities of commercialization of public finance management and the possibility of its organizational and legal modernization.The purpose of the research is to establish the current state of commercialization of public finance management and to identify emerging problems in managing the liquidity and debt of the state, together with the possibilities and ways of leveling them and hedging risks through the organizational and legal modernization of public finance management.The relevance of scientific research and its scientific novelty are based on the absence in the Russian Federation of fundamental research on the current state of public finance management and its commercialization factors. The domestic scientific and practical literature touches on certain aspects of the issue under study, which does not allow us to establish cause-and-effect relationships of problems arising in the course of public finance management.The research is based on general scientific and special methods containing elements of comparative jurisprudence, system analysis, structural and functional approach, as well as a comprehensive and complete study and critical analysis of domestic and foreign fundamental scientific research, containing a number of studies in the field of legal regulation, public administration, econometrics, and macroeconomic forecasting. The collection and analysis of the material for the preparation of scientific research was carried out by a scientific group taking into account the quantitative and qualitative indicators of the authors’ citations, as well as the significance of their individual research.The authors conclude about the need to hedge risks when exercising the authority to manage liquidity and debt as integral elements of macroeconomic policy, with the elimination of the fragmented organizational structure of the authorities. Based on international experience, a number of authors’ recommendations have been developed to create, within the framework of organizational and legal modernization, a unified effective commercialized public finance management system with the establishment of promising potential development options to ensure the achievement of the state’s sustainable development goals stipulated by national projects.