Public Finance System Research Articles

BUDGET DECENTRALISATION: RESULTS AND CURRENT CHALLENGES

The purpose of the paper is to analyse the results of budgetary decentralisation in Ukraine, to identify the factors that have the greatest impact on its success, and to identify the urgent tasks for improving the financial capacity of hromadas. Results. The article analyses the content of the strategies for reforming the public finance management system for 2017-2020 and 2022-2025, as well as the reports on the implementation of the Strategy for the period February 2017 – December 2019 and for 2022. The paper identifies the main achievements and unresolved issues of implementation of these strategies. The study highlights the factors that have the greatest impact on the success of the implementation of the tasks of reforming the public finance system. The coefficients of budgetary centralisation and decentralisation are calculated on the basis of expenditures of the Consolidated, State and local budgets. The article examines the results of a survey of local government representatives conducted in 2023 from April 27 to May 4 by the Kyiv International Institute of Sociology within the framework of the Sectoral Support Initiative for Civil Society in Ukraine project on the availability of post-war recovery plans in hromadas. Value / Originality. The undisputed results of the budget decentralisation for the period 2017-2020 include an increase in the volume of local budgets' own financial resources and a certain improvement in the quality of public services provided to consumers, but it is noted that the goals of the Strategy for Reforming the Public Finance Management System were not achieved during this period. The authors note a significant improvement in the quality of strategic planning in 2021 compared to 2016. It is emphasised that the implementation of most of the budgetary decentralisation measures planned in the latest Strategy was prevented by the full-scale war with Russia. Among the unresolved issues of the reform are the following: significant dependence of local self-government on central government transfers, duplication of functions by district and regional state administrations, low human and institutional capacity of local self-government bodies, and the procedure for administering local taxes. One of the urgent tasks of budgetary decentralisation is the need to develop and implement post-war reconstruction measures.

УПРАВЛІННЯ ФІНАНСОВИМИ РЕСУРСАМИ ТЕРИТОРІАЛЬНИХ ГРОМАД У СИСТЕМІ ПУБЛІЧНИХ ФІНАНСІВ

The article examines the elements of managing the financial resources of territorial communities in the public finance system. The essence of the concept of public finance was analyzed, the classification of the sources of the formation of financial resources of territorial communities was considered, the level of effectiveness of local self-government bodies in the implementation of the functions and powers assigned to them and their role in managing the resource potential of socio-economic development of administrative-territorial units was investigated. It is established that local financial resources management is carried out using an integrated approach, which includes a combination of resources of the State and non-State sectors of the economy. This is done with a view to achieving the goals and indicators of socio-economic development set out in the planning process in the interests of the population of the administrative-territorial entity. In this context, it is important to apply the principles of financial support for the development of territorial communities in the activities of local public authorities. The analysis of the development of the local finance management system has led to the conclusion that it is advisable to determine a comprehensive indicator of the resource provision of local budgets. It should take into account the indicators of revenues per capita, the percentage of budget subsidies, the amount of funds raised through grant support project activities, the share of borrowing made to the local budget, the assessment of the communal property management indicators of the territorial community, etc. The generalised indicator will make it possible to compare the state of financial and resource provision of the territorial community in regions with different levels of economic, natural, recreational and social potential. At the same time, it should be clearly understood that the system of financial management of territorial communities is fundamentally determined by those who actually, not nominally, influence the development and implementation of management decisions and have actual levers of influence on it.

Homo Digitalis in the EU and in Hungary

Digitization has such a complex impact on public and private life, fundamental rights, competitiveness and public services, of which the article only examines the implementation of the EU digital transformation in Hungary. In the context of digitalisation, a significant issue is that the criteria for technical-technological standardization and legislation following the principle of democratic constitutionality differ, so Homo Digitalis is born in the midst of these contradictions. Increasing economic and social competitiveness, strengthening the well-being and legal protection of citizens in the implementation of the decades- long Digital Citizenship programs are linked in the EU strategy documents, while creation of the digital world in Hungary differs to some extent: the provisions on digitization are set out in 996 legal sources in force (November 2023) but the development of the emerging institutional, service and public funding system is incoherent, it does not adapt to the real social needs, digital literacy of citizens and digital penetration. Based on government strategies, Digital Hungarians want the e-Administration, e-Payment system and e-Identification available on their mobile phone from comfort, as they are roaming in social media according to surveys. But in the background, the Hungarian path of digital transformation differs from the principles of EU Digital Citizenship, and the new Act on digital services, adopted in December 2023 without public debate, provides the fullest possible state control on citizens, serves to collect and sell their data, in addition to selectively strengthening the ICT corporate world in the country.

Global Treaties and Domestic Politics: Do Bilateral Investment Treaties Constrain Taxation in Developing Countries?

Abstract Bilateral investment treaties (BITs) define a set of investors’ rights and allow foreign investors to sue countries for policies that breach them. Political scientists typically study the extent to which that chastens policymaking in the context of health and environmental rules. We extend that literature to tax policy. We argue and show that BITs limit developing country governments’ tax intake. We further argue that umbrella clauses are an important driver of these dynamics. Umbrella clauses extend BITs’ protection to side agreements that are often more constraining than the BITs themselves and are typical in developing country resource extraction projects. Umbrella clauses’ tax-inhibiting effects are significant because resource revenues are important to developing countries’ public finance systems. Any assessment of BIT’s developmental benefits should consider their fiscal impact alongside their potential to attract capital inflows.

THE ROLE OF PUBLIC FINANCE IN ECONOMIC GROWTH: THE PLACE OF PUBLIC INVESTMENT

Ensuring economic growth is a necessary condition for the successful socio-economic development of the country as a whole. This requires the activation of the role of public finance and public investment for the development and activation of processes in local self-government bodies, the state and local business as a key factor that determines the dynamics of capital in the economy and has an impact on the pace and nature of economic growth. At the same time, public investment can be considered as a management tool for promoting sustainable development. In conditions of socioeconomic instability, public finances are an important component of the financial system, which cannot adapt to changes automatically. The inertia of public finances generates additional risks notonly for the resource provision of the state's functioning, but also leads to a number of negative phenomena of a macroeconomic and social nature. Under these conditions, the budget is not only an important instrument of the state, through which monitoring of the state of public production and provision of social guarantees to the population is ensured, but also stabilization of the financial system as a whole is carried out. The article proves that an important determinant of socio-economic development of regions is financial decentralization, which contributes, on the one hand, to reducing the role of the state in their financial support, and on the other hand, creates opportunities for strengthening the autonomy of local budgets. The article substantiates the main methods of attracting public investment in the region, namely: regulatory and legal support; allocation of priorities for the selection of investment projects; definition and use of mechanisms for supporting investment activity; development of an investment passport; creation of a separate investment promotion service. A comprehensive analysis of the current state of the public finance system makes it possible to derive some limitations and criteria for the organization of relations between the fiscal and monetary systems in the context of current tasks of socio-economic development

Effects of Budget Deficit Financing on the Economy of Nigeria

The study investigated the effects of deficit financing on the Nigerian economy using data that covered 41 years (1981 to 2021). Real gross domestic product (RGDP) was the dependent variable, while government budget deficit financing disaggregated into different sources of budget deficit financing represented the explanatory variables. The ordinary least squares (OLS) regression method was used for the tests and analyses. Results established that both non-bank public sources of deficit financing and banking system sources of deficit financing had positive and significant effects on growth. However, non-bank public deficit financing positively led the Nigerian economy and was followed by banking system deficit financing. Both ways and means and external deficit financing sources were negative and insignificant in influencing the Nigerian economy. Ways and means were third while external deficit financing was fourth in descending order of influence on RGDP growth. The study further applied the Augmented Dickey-Fuller (ADF) approach to unit root tests and observed that the variables were integrated at both levels and first difference, leading to the application of the Autoregressive Distributed lag (ARDL) approach to data estimation. The ARDL bounds tests showed that the model specified for the study followed a long-run path and that a long-run relationship existed between the dependent variable and the explanatory variables. The estimation of the long-run and error correction estimation indicated that the independent variables had a time-varying effect on the real gross domestic product of Nigeria. That ARDL estimation of the error correction mechanism also showed that RGDP adjusted rapidly to short-run discrepancies in the long run. Finally, the error correction mechanism showed that external sources of budget deficit financing, non-banking system public deficit financing, ways and means source of deficit financing, gross capital formation, real interest rate and exchange rate, all had robust effects on growth, though with varying directions of influence. Based on the foregoing, the study has recommended deficit financing, more especially non-bank public deficit financing and banking system deficit financing as better options for attaining the much desired rapid and sustainable economic growth of Nigeria as they have been proven to be non-inflationary in practice compared to ways and means and external source of deficit financing over the years.

FEATURES OF PUBLIC PROCUREMENT IN EXTREME CONDITIONS OF STATE FUNCTIONING

The article reveals the role of public procurement in the public finance system of Ukraine in the extreme conditions of its operation in the last 15 years and the need to overcome the long-term consequences of the coronavirus pandemic and Russia's war against our country. The need to strengthen state regulation of this process is emphasized, since in the extreme conditions of the functioning of Ukraine, only the state can effectively resist the specified challenges, as well as the so-called "black swans". At the same time, the erroneous transfer of the so-called military tax on citizens' incomes from the budgets of local self-government bodies to the State Budget of Ukraine in 2024 is emphasized, which contradicts the provisions of the Budget Code of Ukraine. The authors also analyzed the features of public procurement in the EU countries to eliminate the consequences of the coronavirus and the energy blockade of the countries of the European Union by Russia after its war against Ukraine. It is emphasized that in these conditions EU countries accelerate the implementation of "green" projects and allocate additional funds for them, which is important to take into account in Ukraine in the process of rebuilding its economy. The article examines the problems that exist in Ukraine under martial law when conducting tender procurements and taxing their Ukrainian participants, as well as problems in the activities of the country's controlling structures in the field of public procurement control and planned ways to overcome them, taking into account the experience of the countries of the European Union. primarily Poland. It is emphasized that a significant part of the problems in the defense sphere of Ukraine can be solved by innovative entrepreneurship with a significant increase in public orders for similar products. The authors also substantiate the directions of reforming the mechanism of public procurement in Ukraine in the conditions of reconstruction, taking into account the experience of the EU countries regarding measures to introduce the European Green Course; identified financial positives and problems of public procurement after the entry into force of the new version of the Law of Ukraine "On Public Procurement"; researched forms of financial responsibility of participants and customers of public procurement in Ukraine under martial law and their effectiveness.

НИЗКАЯ ЭФФЕКТИВНОСТЬ МЕЖБЮДЖЕТНЫХ ТРАНСФЕРТОВ В РОССИЙСКОЙ ФЕДЕРАЦИИ

The scientific article is devoted to the problem of low efficiency of interbudgetary transfers in the public finance system of the Russian Federation. The study is conducted to identify the main factors influencing the low efficiency of transfer of funds between different levels of the budget system, and to develop recommendations for improving this situation. The authors draw attention to the imbalance in the distribution of financial resources between different regions, which creates problems in ensuring the socio-economic development of less developed territories. The rest of the article analyzes the reasons underlying the low efficiency of intergovernmental transfers. Factors include insufficient transparency in the distribution of funds, a complex system for distributing mandatory expenses, as well as problems of corruption at the level of regional and local authorities. Particular attention is paid to financial management models that promote more efficient use of budget resources at the local level. In addition, the article emphasizes the importance of the participation of public organizations, experts and representatives of the business community in the process of discussion and decision-making on issues of interbudgetary transfers. Active involvement of civil society can contribute to more transparent and responsible use of budget funds. In conclusion, the article puts forward the idea of the need for an integrated approach to solving the problem, which includes changes in legislation, strengthening the institutional framework, as well as training and support for regional and local authorities in order to increase their efficiency in managing budget resources. Thus, this scientific article offers extensive analysis and constructive proposals for improving the efficiency of intergovernmental transfers in the Russian Federation, taking into account the multidimensional aspects affecting this problem.

Dampak Inovasi Teknologi Keuangan Publik Terhadap Akuntabilitas Dan Transparansi: Sebuah Kajian Literatur

On a global scale, advances in public finance technology have played a central role in improving efficiency, accountability and transparency in public financial management. Public finance technology innovation, particularly in the form of fintech, has proven itself to be an effective tool in reducing reliance on manual processes, creating efficiencies that cover various aspects of public finance. Nonetheless, challenges still come with the implementation of public finance technology innovation. The research method uses the literature review method which is one of the qualitative research methods. In this research, the author collects and analyzes existing information in scientific literature to provide a deeper understanding of the impact of public finance technology innovation on accountability and transparency in public financial management. Innovative initiatives, such as e-procurement, e-budgeting, e-audit, and fintech, have been successfully implemented in various countries, including Indonesia, with the aim of improving efficiency, transparency, and accountability in the public finance system. Nonetheless, a number of challenges that need to be overcome were identified.

Structuring the budget process of the most powerful countries in the world: the United States, China, and Japan

In the conditions of overcoming the domestic crisis budget phenomena, the implementation of the chosen course of European integration and Euro-Atlantic integration, further development of the budget process based on the implementation of the best examples of the budget sphere of developed countries in the domestic budget sphere is an urgent need for the financial present of our country. The article structures the budget process of the United States, China and Japan through a detailed review of their budget systems and budget processes, as the most developed in terms of both GDP and the state budget of the country of the world. The authors identified and analyzed the budget legislation of the above-mentioned countries, identified the components of the budget systems of the latter, identified the powers of all branches of government regarding the budget process in the USA, China and Japan, described the step-by-step components of the budget process in these countries, worked out budget principles as part of the principles of budgeting and principles of the budget process in the USA, China and Japan, formed models of the budget process in the above-mentioned countries, including: budget principles, principles of the budget process, stages of the budget process with procedural powers. The structuring of the budget process of the USA, China and Japan was carried out, as well as the following comparative analysis allowed us to conclude about the strengths of both the budget process of the PRC (which is manifested in its clear regulation, systematization and legally fixed surplus of the state budget), and the USA and Japan (which is manifested in the repeated consistency of budget indicators at all levels and the level of their discussion and the openness of the latter during the first two stages of budget processes in these countries). It is concluded that these positions will be introduced into domestic practice, which will contribute to more effective implementation of all stages of the budget process, which, in turn, will help to stabilize the public finance system of Ukraine.

ОЦІНКА СУЧАСНОГО СТАНУ ДЕРЖАВНИХ ФІНАНСІВ В УКРАЇНІ

The current state of public finances in Ukraine, in particular of state budget and debt burden is analyzed in the article. The relevance of the researched topic due to the need to build an effective system of the state finances that have a special value in the conditions of cyclical economic fluctuations and the decline of productive forces, decline in social living standards, decrease in competitiveness of our country and martial law. In order to perform these functions, the state finances should have an adequate and optimal resource base. The dynamics of nominal GDP for the last five years are given and also a comparative analysis of changes in GDP per capital was carried out in Ukraine and in leading European states. It was established that the nominal GDP of Ukraine in the national currency during the studied period had a tendency to increase except of key challenges and threats on the change in GDP were substantiated. The largest influence for reduction GDP in 2022 caused a full-scale invasion of the aggressor country in Ukraine, growth of external debt, a large part of a shadow economy and low investment attractiveness of Ukrainian companies. The implementation of the state budget of Ukraine analyzed in terms of income, expenses and lending. Revenues of the state budget in 2022 in creased due to the international financial help, which composed more than a quarter of all incomes of a state budget. State expenditures of budget in 2022 were on 17,1% lower than planned. It is observed the growth of a profitable part of a budget which is due to economic and political factors. The emergence of significant fluctuations and deviations in the structure of the reGDPvenue side of the state budget in the context of the budget policy of the state in modern conditions is due to the low quality of planning, which has been observed in recent years in the organization of public finances. The dynamics and structure of the state debt are given and also the dynamics of the debt burden for 2018-2022. It was grounded that the growing debt dependence of the Ukrainian government will significantly weaken the fiscal capacity of the state. In general, the stability of the public finance system, taking into account the existing challenges and threats.

Directions for rationalisation of the public finance system in the event of the covid-19 crisis

ObjectivesPublic financial management is of the most global and complex nature. At this level, decisions are made that determine everything related to the collection and spending of public funds. However, we must be aware that at this level there are the greatest political entanglements, which are subject to transformation and are inextricably accompanied by changes in government teams and cooperating party coalitions. This causes general recommendations to be formulated on how to manage public funds. Discussions are held in the government or parliament forum focused on finding ways to reduce expenses. Another direction of political debates leads to a turn towards public revenues. This is expressed, for example, by striving to reduce the tax burden. The attention is therefore focused on two sides of the financial economy, i.e. on the processes of collecting and spending public funds.Material and methodsInduction was used as the main research method. It involves drawing general conclusions or establishing regularities based on the analysis of empirically identified phenomena and processes.ResultsMaintaining the stability of public finances may turn out to be one of the greatest challenges of Polish economic policy in the next few years.ConclusionsThe rate of fiscalism in Poland is lower than the average in the EU. Public revenues in Poland are characterized by a high share of social security contributions. The ratio of tax and contribution income to the potential tax base in Poland is relatively low in the case of consumption and comparable to other EU countries in the case of work. Between 2004 and 2014, the share of spending on social transfers in GDP in Poland decreased by 1.8 points. percent. which was the largest decline among all EU countries.

Exploring Literature on Financial Socialization – A Bibliometric Analysis

In the past few years, extensive research has focused on comprehending the influence of financial socialization on people's financial habits and overall welfare, indicating a substantial convergence in the area. This article bases itself on a review of literature of prior research, using selected keywords to search the SCOPUS database. Further, the Bibliometrix R package was utilized for the analysis to ensure comprehensive results. The significant themes identified are public attitude, financial system, sustainability, and financial education. The present research sheds light on the growing importance of financial socialization and its various domains which is yet to be explored by theoreticians and practitioners from various countries.

The Roots of Inequality: Texas School Politics and the Leadup to Rodriguez

AbstractContrary to Supreme Court Justice Lewis F. Powell’s majority opinion in San Antonio Independent School District v. Rodriguez (1973), Texas’s school finance system was the result of years of legislation and state-building that gave some areas the resources and capacity to provide more educational opportunities than others. As this article demonstrates, during the century leading up to the Rodriguez decision, Texas political leaders developed a public school funding system reliant on the highly unequal spatial distribution of property wealth across rural/urban, class, and racial lines. There was nothing inevitable about this. In fact, the history of Texas’s system reveals four pivotal eras when the state’s White leaders created and maintained a school finance system reliant on local property taxes and defined by rural/urban and racial differences that cemented deep inequalities. This case study traces those changes over time and brings part of the story to life through the example of Kirbyville, Texas, and its struggle to finance a new White high school. Returning to the historical roots of school financing in Texas reveals how rural/urban, racial, and wealth inequalities have been foundational to Texas’s public school finance system.

OVERVIEW OF RECOMMENDATION ALGORITHMS FOR USE IN CROWDFUNDING PLATFORMS

This report provides an in-depth overview of recommendation algorithms and their critical role in the dynamic landscape of crowdfunding systems. Public financing systems have become an outstanding and transformative method of financing a number of creativ

ЕФЕКТИВНІСТЬ ПРОВЕДЕННЯ ДЕРЖАВНИХ ФІНАНСОВИХ АУДИТІВ В УМОВАХ ВІЙНИ

In the context of transformational changes, there is a growing need for a deeper study of the theoretical and methodological foundations of state financial control, its constituent forms and types, taking into account positive experience from foreign countries in its organization and effective implementation. Improvement of approaches to determining the strategic directions of state financial control by the central state authorities in the medium term is an expedient step that will improve the efficiency of management of the system of public finance in war conditions. The development of public relations, integration processes and the reform of the control system determine the new requirements for the organization and conduct of state control in the management of budget resources. That is why the emphasis of control powers in the public administration sector, especially on budget resources, creates the need for careful study of the category. At the same time, it is important to establish appropriate institutional principles for the organization of the state financial control system by the central executive authorities as well as to determine the directions for further development of its components in the context of a fullscale invasion. Improving the system of state financial control is a key issue, taking into account the best experience of countries with developed and transformational economies. Enhancing the capabilities of state financial control requires a more rational use of the potential of regulatory control procedures and identifying ways to increase their effectiveness. This confirms the relevance of the chosen research topic and determines its aim. The article is aimed at revealing the possibilities and prospects for creating new forms and types of state financial audits in those areas where budget resources are used, which will allow efficient and effective use of public finance resources within the framework of implementation of European norms of functioning of the system of state financial control. The article considers the importance of defining clear outlined goals during various forms of state financial audits. The main sources of threat are revealed in those areas where budget resources are used, because if in some departments we use funds with violations, then it is logical that other departments receive less money to solve their main problems. Criteria for selecting the main objectives and sub-objectives of the audit have been developed. The main performance indicators of the State Audit Service of Ukraine in the conditions of war were monitored, data on the Chernivtsi region were considered. The authors proved that the effectiveness and efficiency of control measures are the key issues to a successful future of our country.

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.

FInancial and budgetary policy as an tool of social and economic development of the country

Relevance of the research topic. Financial and budgetary policy is an important tool for the socioeconomic development of the country. The formation and implementation of an effective financial policy of thestate has an important place in ensuring effective social development. It is necessary to determine the priorities of the financial and budgetary policy and create conditions for economic growth. Further development of the state finance management system is important to increase the efficiency of institutional transformations of the economy and ensure positive macroeconomic dynamics. Formulation of the problem. Financial and budgetary policy should be an effective tool for ensuring the socio-economic development of the country. Analysis of recent research and publications. The question of the formation and implementation of finance and budget policy is quite widespread in scientific research. These are the scientific works of famous domestic and foreign scientists: V. Nordhaus, V. Teles, P. Samuelson, I. Chugunov, T. Kaneva, L. Lysiak, I. Lukyanenko, A. Mazaraki, V. Makogon, V. Oparin, M. Pasichnyi, O. Samoshkina, V. Fedosov and others. Highlighting unexplored parts of the general problem. It is important to form and implement the financial and budgetary policy of the socio-economic development of the country. Further development of the budget planning system and improvement of the efficiency of use of budget expenditures, improvement of the financial mechanism of social development is expedient.Setting the task, the goal of the research. The main tasks of the study are to reveal the essence of the formation and implementation of the financial and budgetary policy of the socio-economic development of the country, the main areas of improvement of the financial mechanism of social development, further development of the budget planning system and increasing the efficiency of the use of budget expenditures. The purpose of the research is to reveal the theoretical foundations and improve the mechanisms of formationand implementation of the financial and budgetary policy of the socio-economic development of the country. Method or methodology of research. The article uses a set of methods and approaches of scientific research: systemic, factorial, comparative, synthesis, generalization, scientific abstraction and others. Presentation of the main material (results of work). The essence of the formation and implementation of the financial and budgetary policy of the socio-economic development of the country is disclosed; received further development of provisions on the system of budget planning and increasing the efficiency of the use of budget expenditures. The theoretical foundations were developed and the financial mechanism of social development was improved, it was determined that in order to increase the effectiveness of institutional transformations of the economy, to ensure positive macroeconomic dynamics, the further development of the state finance management system is important, the financial and budgetary policy should take into account a number of tasks that stand at a certain stage of the development of social relations. Field of application of results. The results of the research can be used in the process of formation andimplementation of financial and budgetary policy. Conclusions according to the article. Financial and budgetary policy is an effective tool for influencingsocio-economic processes. Important tasks in the process of development and implementation of the state financial policy are the improvement of the public finance system, the strengthening of the effectiveness of the regulatory function of the budget and tax mechanisms, the implementation of structural changes in the economy aimed at increasing the rate of economic growth. The effectiveness of economic transformations largely depends on the quality level of the institutional component of financial architecture, the stability of thecountry's financial system, the effectiveness of the influence of financial instruments on the socio-economic development of the country.

Fiscal risk management in Ukraine under new challenges

This article examines fiscal risks and their management in Ukraine and abroad, drawing on international best practices. The main aim is to analyze global risks in the short and long term and evaluate how public finances have been managed in Ukraine and other countries during economic crises, while suggesting areas for improvement. The study utilized various scientific methods, including the structural-functional method to uncover risk management mechanisms within public finance systems and the comparative method to contrast key indicators of Ukraine's public finance system with those of other nations. Key findings include the identification of primary tools used nationally and internationally to mitigate the impact of fiscal shocks during crises. Budgetary practices from different countries were also examined, emphasizing fiscal rules, social expenditure allocation, and incentives for innovation and investment. The research highlights how global challenges and economic crises have led countries to adopt different approaches based on their economic development and risk management integration into fiscal processes. Recommendations are provided to enhance fiscal risk management measures in Ukraine, particularly in the ongoing wartime context. In conclusion, this article underscores the importance of effective fiscal risk management and offers specific suggestions to strengthen fiscal risk management practices in Ukraine, considering current circumstances and unforeseen challenges.

Сучасна парадигма фінансової політики держави та особливості її реалізації в умовах війни на території України

Introduction. In peacetime, each country that implements the democratic values of civil society determines the growth of the welfare of citizens and the realization of their economic interests and constitutional rights as the main development priority. At the same time, the state’s financial policy is the main economic instrument of growth. It provides an optimal, efficient distribution of GDP through the institutions of the budget system and forms a stable financial environment, which is a condition for the realization of property rights and the investment potential of legal entities and individuals. Such conditions are ideal for implementing market laws , the mechanism of financial policy, and its methods and tools generally have a corrective and stimulating effect. In a different economic situation, other tools and methods of the state’s financial policy mechanism become effective when the country is at war. Problem Statement. The peculiarity of the implementation of financial policy in war conditions is a violation of financial stability and macroeconomic imbalances, the main challenge is the cash gaps between revenues and expenditures of the state and local budgets, which is a consequence of a reduction in the revenue component of the state budget when a significant increase in defense and security spending is required. Purpose. Justification of the modern paradigm of the financial policy of the state and the peculiarities of its implementation in the conditions of war on the territory of Ukraine, as well as the development of measures to implement the priority goals of the state's financial policy in the conditions of war and post-war reconstruction. Methods. Statistical and analytical methods, a systematic approach, a method of groupings, generalizing characteristics, a tabular method and a comparison method were used. To reveal the essence of financial policy in terms of the formation of budget expenditures in war conditions, the methodology of the theory of uncertainty and the structural-functional approach were applied. Results. The study of the modern paradigm of the state's financial policy in Ukraine substantiates the need to identify three models for its implementation: 1) in a peaceful state, 2) during the war, 3) financial policy of Ukraine’s recovery. The strategic goals of each model of financial policy may coincide, this primarily applies to goals that should ensure a positive trend in GDP growth and monetary incomes of citizens. However, modern challenges in the period of a full-scale war on the territory of Ukraine determine the only priority goal of the present for the whole society - ensuring Victory and de-occupation of the territory. Measures that make it possible to realize the priority goals of the state's financial policy in war conditions should be divided into two groups: the first is immediate (primary) measures to optimize budget spending in war conditions, and the second is budgetary measures for post-war reconstruction Conclusions. The justification of the modern paradigm of the financial policy of Ukraine is conditioned by the need for conceptual and methodological research in the field of transformation of the existing financial system of the state, which has not got rid of the elements of administrative-command control levers and to substantiate the legal and institutional foundations for the development of the public finance system of the state. “Recovery bonds” as an investment resource for post-war recovery can become a separate instrument in the market of domestic government borrowings. The priority of realizing the goals of the state’s financial policy model during the war should not deny the strategic goals of realizing the financial policy goals of restoring Ukraine as a European state.