Digitalization of Financial Management of Territorial Communities: Opportunities and Limitations

Анотація

The article explores the digitalization of financial management in the territorial communities of Ukraine as an institutional transformation of budget management, which goes beyond the mere technical implementation of information systems and entails a shift in the logic of transparency, accountability, efficiency, and citizen participation in financial processes. The author summarizes the approaches of domestic researchers to the challenges of local financial management in the context of decentralization, wartime, and postwar conditions, and also identifies research gaps regarding the integration of digital solutions into a unified system of community financial management and their impact on the quality of managerial decisions. Key digital solutions applied in the financial management of territorial communities (in particular ProZorro, E-Data, openbudget.gov.ua, electronic document management, GIS, etc.) have been systematized, showing that as of early 2026, Ukraine has established a basic digital framework primarily focused on transparency and accountability, while tools for strategic planning, forecasting, and risk management are used only partially. It is substantiated that the efficiency of digitalizing the finances of territorial communities actually begins with Internet access as a fundamental infrastructure, which enables the operation of digital platforms, data integration across public administration levels, and genuine stakeholder participation. Based on statistical sources on Internet coverage and the digital divide (urban/rural), it is demonstrated that uneven access creates structural constraints for inclusive digitalization. It has been concluded that there is a need for a comprehensive policy that integrates digital tools with the development of internet coverage, digital competencies, cybersecurity, and alternative access channels for vulnerable groups. The practical value of the results obtained lies in their potential use by territorial communities when forming digital strategies and setting priorities for modernizing financial management.

Класифікація

Ідентифікатори

Схожі роботи