DIGITAL TRANSFORMATION AND REFORM OF PUBLIC FINANCE MANAGEMENT IN THE CONDITIONS OF FULL-SCALE WAR IN UKRAINE

Natalia Metelenko; Olena Trokhymets; Kseniia Zhovnir-Vasylenko

doi:10.32782/2308-1988/2024-51-64

Natalia Metelenko Potebnia Engineering Education and Research Institute of the Zaporizhzhia National University https://orcid.org/0000-0002-6757-3124
Olena Trokhymets Potebnia Engineering Education and Research Institute of the Zaporizhzhia National University https://orcid.org/0000-0001-7587-7948
Kseniia Zhovnir-Vasylenko Potebnia Engineering Education and Research Institute of the Zaporizhzhia National University https://orcid.org/0000-0001-9495-0442

DOI: https://doi.org/10.32782/2308-1988/2024-51-64

Keywords: digital transformation, public finances, cyber threats, public services, budget process, local government

Abstract

In recent years, the processes of digitalization of public services and business processes in public institutions in Ukraine have been developing at an accelerated pace, which contributes to the implementation of reforms that are due to Ukraine's desire to join the European Union. The EU provides comprehensive assistance, support in expanding infrastructure, and developing new software solutions for public institutions in order to strengthen their potential in preparation for digital transformation. However, the full-scale war of the Russian Federation against Ukraine, which was launched by the aggressor country in February 2022, creates many obstacles in the processes of consolidating efforts to modernize the public finance management sector. Such obstacles include: lack of sufficient influence and control from line ministries; full automation of business processes; insufficient level of integration and interaction between structures; incoherence in the development of information technologies in departments; lack of comprehensive policies for information protection and countering cyber threats, which is especially relevant in conditions of full-scale war; lack of consolidated data for prompt and effective decision-making, etc. To solve the outlined problems during the war, we have generalized approaches to the digital transformation of public services taking into account world experience and substantiated the feasibility of its use in domestic practice, in particular in the budget process, in the social sphere. Particular attention is paid to reforming approaches to budget planning, which is aimed at ensuring macroeconomic balance in the state. It is proven that digital transformations as innovative reform processes will increase the efficiency of interaction between state administration and local self-government bodies, with business structures and active members of civil society, and increase the openness and transparency of the activities of government representatives.

References

Kovalenko, S. V. (2023). Skladnyky informatsiinoi polityky orhaniv publichnoi vlady v eru tsyfrovizatsii ta v umovakh viiny [Components of information policy of public authorities in the era of digitalization and in conditions of war]. Mechanisms of public administration. Scientific notes of the V.I. Vernadsky TNU. Volume 34. No. 3. P. 43–49. Retrieved from: https://www.pubadm.vernadskyjournals.in.ua/journals/2023/3_2023/8.pdf (accessed: 11.10.2024).

Dosvid Sinhapuru ta Londona – kliuch do pobudovy v Ukraini «rozumnykh» mist, holova SmartCity.UA Yu. Nazarov [The experience of Singapore and London is the key to building "smart" cities in Ukraine, head of SmartCity.UA by Yu. Nazarov]. Retrieved from: https://blog.liga.net/user/yunazarov/article/39520 (accessed: 11.10.2024).

The Digital Economy and Society Index (DESI). URL: https://digitalstrategy.ec. europa.eu/en/policies/desi (дата звернення: 10.10.2024).

E-Government Development Index (EGDI). Retrieved from: https://publicadministration.un.org/egovkb/en-us/About/Overview/-E-GovernmentDevelopment-Index (accessed: 10.10.2024).

Chukut, S. A., Poliarna, V. L. (2016) Osnovni napriamy ta priorytety nadannia elektronnykh posluh v krainakh Yevropeiskoho soiuzu: na prykladi Danii [Main directions and priorities of providing electronic services in the European Union countries: using the example of Denmark]. Public administration: improvement and development. No. 12. Retrieved from: http://www.dy.nayka. com.ua/?op=1&z=1015 (accessed: 10.10.2024).

Tsyfrovi posluhy u Danii [ Digital services in Denmark]. 23.03.2024. Retrieved from: https://lifeindenmark.borger.dk/apps-and-digital-services/digital-services-in-denmark. (accessed: 10.10.2024).

Merzliak, A. V., Boklah, V. A., Vikhort, Yu. V. (2021) Zarubizhnyi dosvid rozvytku systemy elektronnykh publichnykh posluh v umovakh rozbudovy informatsiinoho suspilstva [Foreign experience in developing a system of electronic public services in the context of building an information society]. State and Regions. No.1 (71). P. 136–142.

Finansove pravo: pidruchnyk [Financial law: textbook]/ O.O. Dmytryk, I.Ie. Kryntskyi, O.A. Lukashev ta in. za red M.P. Kucheriavenko. Kharkiv: Pravo, 2017. 374 p. P. 13.

Biudzhetna systema: navch. Posib [ Budget system: a tutorial guide]. / N.I. Klymash, K.V. Bahatska, N.I. Demianenko ta in., za zah. red. T.A. Hovorushko. Lviv «Mahnoliia 2006», 2014. 296 p. Retrieved from: https://dspace.nuft.edu.ua/server/api/core/bitstreams/c90194c5-3988-4dc7-9fd4-cc27a8a039bb/content (accessed: 10.10.2024).

Fatás А., Mihov I., Alesina A. The Euro and Fiscal Policy. Europe and the Euro. [ed. A. Alesina, F. Giavazzi]. National Bureau of Economic Research; University of Chicago Press, 2010. P. 287–324.

Razuvaieva, D. V. (2014) Vitchyznianyi ta zarubizhnyi dosvid formuvannia mistsevykh biudzhetiv [Domestic and foreign experience in forming local budgets]. Development Management. No. 10. P. 69–71.

Mankiw, N. G., Weinzierl, M. An Exploration of Optimal Stabilization Policy. Harvard Business School, 2011. WP. Р. 11–113.

Stability and Growth Pact: Council of the European Union, 17 June 1997. Official Journal C 236, 2 Aug. 1997. P. 0001–0002.19.

Menguy, S. A dynamic rule applied to the threshold imposed on the European budgetary deficits. Journal of Policy Modeling. 2007. Vol. 30 n. 6. P. 1093–1105.

Bohdan, T. P. Voienni finansy: shcho povynna robyty derzhava? [War finances: what the state should do?] Retrieved from: https://lb.ua/blog/tetiana_bohdan/523270_voienni_finansi_shcho_povinna_robiti.html (accessed: 11.10.2024).

Chuhunov, I. Ia., Titarchuk M. I. Biudzhetna systema v umovakh transformatsii sotsialno-ekonomichnykh vidnosyn [ Budget system in the context of transformation of socio-economic relations]. Retrieved from: https://cyberleninka.ru/article/n/byudzhetna-sistema-v-umovah-transformatsiyi-sotsialno-ekonomichnih-vidnosin/viewer (accessed: 10.10.2024).

Chuhunov, I. Ia. (2021) Biudzhetna stratehiia suspilnoho rozvytku [Budget strategy for social development]. Kyiv: Kyiv. National Trade and Economic University, 532 p. P. 4.

Chuhunov, I. Ia, Nasibova, O. V. (2021) Finansovi imperatyvy rozvytku sotsialnoho zakhystu naselennia [Financial imperatives for the development of social protection of the population]. SCIENTIA FRUCTUOSA Bulletin of the Kyiv National University of Trade and Economics. No. 2 (136). P. 114–130.

Lysiak, L. V. (2017) Finansove zabezpechennia sotsialnoho zakhystu naselennia v Ukraini: problemy ta perspektyvy Financial provision of social protection of the population in Ukraine: problems and prospects]. Bulletin of Dnipropetrovsk University. Series "Economics 25". Issue 11 (1). P. 23–30.

Makohon, V. D. (2016). Formuvannia dokhidnoi chastyny biudzhetu yak skladovoi finansovo-ekonomichnoho rehuliuvannia [Formation of the revenue part of the budget as a component of financial and economic regulation]. Scientific view: Economics and Management. No. 1. P. 100–106.

Budget 2024. Official website of the Ministry of Finance of Ukraine. Retrieved from: https://mof.gov.ua/uk/budget_of_2024-698 (accessed: 11.10.2024).

Pasichnyi, M. D. (2020) Biudzhetna polityka ta ekonomichnyi rozvytok [ Budgetary policy and economic development]. University Economic Bulletin. Issue. 44. P. 153–164.

Seliverstova L. S., Adamenko I. P. (2018). Finansova systema Ukrainy: osoblyvosti funktsionuvannia ta napriamy udoskonalennia [Financial system of Ukraine: features of functioning and areas for improvement]. Economy and State. No. 6. P. 17–20.

Shkodina I. V. (2021) Biudzhetna polityka ta yii osoblyvosti v ekonomitsi Ukrainy [Budgetary policy and its features in the economy of Ukraine]. Bulletin of the V. N. Karazin Kharkiv National University. Ser. "International Relations. Economics. Regional Studies. Tourism". Issue. 13. P. 135–151.