The efficiency of managing public finances in new economic conditions ; Ефективність управління публічними фінансами в нових економічних умовах

Abstract

Problem setting. The development of the Ukrainian state is stipulated by the interaction of various external and internal factors that affect the socio-economic development of the country. These and other influences act from the outside, and objectively influence social processes in Ukraine. Because of this, the problem of the efficiency of public financial management comes to the fore, which in the new economic environment becomes of particular importance. The effectiveness of managerial actions, in this case, should be aimed at the effective use of public funds following their rational allocation, thus determining the main vectors of further development of the Ukrainian state. Recent research and publications analysis. Public finance management is the subject of research of many domestic and foreign scholars. In particular, there are interesting the works of such researchers as O. Dluhopolskyi, T. Yefymenko, O. Kyrylenko, S. Klimova, G. Kotina, I. Malyi, R. Allen, W. Crandall, V. Fritz, D. Kaufmann, A. Kraay, M. Mastruzzi, Minh Le T. and others. In their works, scholars study the main theoretical and practical aspects of public finance management, the features of their rational redistribution because of democratic processes and decentralization transformations in a given state. However, the rapid development of the world community and the changes that are taking place in Ukraine as a result of these transformations stipulate the necessity of deep and thorough research taking into consideration the economic conditions that are formed under the influence of global disturbances.Highlighting previously unsettled parts of the general problem. The article aims at substantiating the areas of improving the efficiency of public finance management in the new economic environment, basing on a study of the category of efficiency in public finance management, analysis of problems related to the distribution and redistribution of public funds in Ukraine.Paper main body. The effectiveness of public financial management should be seen as the ability of the government system to act in such a way as best to meet the requirements and challenges of the external environment, ensuring sufficient, rational and economically sound use of financial resources for the internal environment. Today, it is doubtful to say that public financial management in Ukraine is quite adequate, as there are too many problems in this area that need attention and immediate solution by public authorities: budget programs in modern realities provide for the financing of public institutions instead of financing services, which are provided by these institutions; ineffective system of control, monitoring and audit of the use of state funds, in particular, by the public in the absence of unique indicators for assessing the goals set in the process of using funds; high level of corruption of state authorities, which directly affects the procedures for distribution and use of state funds; high rates of public debt and budget deficit are evidences of a significant imbalance in the public finance system; macroeconomic and budgetary planning and forecasting often deal with political bias and biased data, poor forecast execution, and weak information and software; insufficient legal, institutional and methodological support of the public finance management process.These and other problems in the field of public finance management directly affect the socio-economic development of the Ukrainian state and its positioning on the world stage. In particular, this is evidenced by such an indicator as the Index of Economic Freedom, as well as the negative dynamics of the budget deficit in Ukraine in recent years.To this end, reform measures should be introduced in the field of public administration, which can be grouped into such areas as legal, institutional, organizational and technological. Regulatory and legal support of public finance management needs particular attention, as the measures presented in the Public Financial Management System Reform Strategy for 2017 – 2020 need a logical continuation in the new strategy. Accordingly, methodological support should be improved through the use of the latest methods and systems for assessing the effectiveness of public finances. The organizational direction should increase the transparency of the management system by improving the work of specialized analytical modules and information systems. The technological direction is based on the digitalization of public services, which is gaining more and more positions in the field of public administration.These areas are interrelated and designed to address the main tasks of improving public finance management, efficient use of financial resources of the state, reducing the budget deficit and further effective budgetary, tax and administrative reforms in the state.Conclusions of the research and prospects for further studies. In current conditions, there are many unresolved problems in the state, which are related to the inefficient use of state funds and, on this basis, in the decline of public confidence in the authorities. Suggested directions of improving the efficiency of public financial management in the new economic environment reflect the necessity to change the legal, institutional, technological and organizational environment in Ukraine in the process of public financial management, due to the real need to take into account environmental changes and respond flexibly to challenges, which again and again arise in new conditions of the national and world economy functioning. ; Розглянуто особливості управління публічними фінансами в нових економічних умовах. Проаналізовано категорію ефективності у сфері управління публічними фінансами. Розглянуто проблеми, які пов'язані із ефективним розподілом та перерозподілом державних коштів в Україні. Обґрунтовано напрями підвищення ефективності управління публічними фінансами в нових економічних умовах.