DIGITAL TRANSFORMATION OF PUBLIC FINANCE IN UKRAINE

Abstract

The difficult political and economic situation in Ukraine presupposes an immediate solution to the issue of increasing the efficiency of the formation and distribution of public finances and their transparency. Digital technologies have great potential for improving public financial management, and will significantly change traditional fiscal policy instruments over time. The digital economy has been identified as one of the main directions of development of the Ukrainian economy for the next decade. Theoretical issues of digital transformation of public finances of Ukraine are investigated. If technology is used wisely, fiscal policy will be more efficient, transparent, fair, which will have a positive impact on the standard of living and economic development of Ukraine. The potential benefits are huge, so the government will have access to better data and more efficiently and transparently form and allocate financial resources. The necessity of digitalization at the present stage taking into account global processes. The recommendations of international financial organizations on digitalization of public finances and features of their application in the Ukrainian realities are covered. The main direct and indirect beneficiaries are identified and the positive effects of digital transformation of public finances are identified. The main ones are: increase in tax revenues; better forecasting and budgeting; fair distribution of social benefits. The financing of the digital transformation of public finances in Ukraine, which is mostly due to international technical assistance, is analyzed. The current state of digitalization of public finances and the main platforms of open data are studied, the potential of development is estimated. The main challenges of implementing the digital transformation in public finances are highlighted: cybersecurity, loss of personal data, unauthorized change of data in registers; untimely data update, impossibility of compilation, data formatting, existence of several platforms of the same type; blocking the disclosure of data by individual participants, hiding data; system failures; lack of qualified personnel to develop and configure the system; ethical issues of data disclosure; increasing competition and the quality of the IT services market in Ukraine; standardization of quality of digital services. Thus, increasing trust in the government and effective interaction between the population, business and the state, reducing corruption - all this is possible due to the digitalization of Ukraine's economy, which must first begin from public finances.