International practices of digitalization of public financial management: implications for Ukraine

Анотація

Introduction. The ongoing digital transformation of the public sector is fundamentally reshaping approaches to public financial management, bringing issues of transparency and efficiency in the use of public resources to the forefront. The development of digital technologies, open data initiatives, and e-government solutions is creating a new architecture of the budget process aimed at enhancing the quality of managerial decision-making and strengthening public oversight. Problem Statement. Despite the active implementation of digital solutions in public financial management, significant challenges remain, including the fragmentation of information systems, insufficient data integration, limited use of big data analytics and artificial intelligence technologies. These issues hinder the establishment of a unified information environment and reduce the effectiveness of decision-making within the budget process. Furthermore, adapting international digitalization practices to Ukraine’s institutional environment remains an important challenge. The purpose is to generalize international experience in the digitalization of public financial management and to substantiate directions for its implementation in Ukraine in order to enhance the transparency and efficiency of the budget process under conditions of digital transformation. Methods. The study employs a combination of general scientific and specialized research methods, including analysis and synthesis to systematize theoretical approaches; the comparative method to examine international and national digitalization practices; a systems approach to consider public financial management as an integrated digital ecosystem; as well as structural-logical analysis and the method of generalization to formulate conclusions regarding the evolution of Digital Public Financial Management models and data-driven approaches. Results. The study demonstrates that contemporary international practices of public financial management digitalization are based on the concepts of Digital Public Financial Management, Open Government Data, and data-driven public financial management, which emphasize the integration of information systems, the use of open data, and advanced big data analytics. It is established that the most effective models operate in countries with mature digital ecosystems characterized by interagency integration, unified data standards, and the application of analytical tools to support managerial decision-making. The analysis of Ukraine’s experience reveals significant progress in the implementation of open digital platforms (E-Data, Open Budget, and Spending) and electronic reporting systems. However, limited interoperability among systems, an insufficient level of predictive analytics, and the absence of a unified digital platform for public financial management remain substantial challenges. The findings indicate that open and closed digital systems perform complementary functions but require further consolidation within a single integrated ecosystem. Conclusions. The study substantiates that a promising direction for the development of Ukraine’s public financial management system is the establishment of a unified integrated digital ecosystem based on the single source of truth principle. Such an ecosystem would integrate all stages of the budget process within a common information environment. Its implementation would enhance transparency and efficiency in the use of public resources, ensure consistency and reliability of financial data, reduce information asymmetry, and create conditions for the application of artificial intelligence and predictive analytics tools in public financial management.

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