Transformation of the Public Finance System of Ukraine under Global Economic Challenges

Abstract

The article examines the current state, key problems, and prospects for the development of the public finance system of Ukraine in the context of European integration processes and public administration transformation. It is substantiated that the efficiency of public finance functioning is a determining factor in ensuring macroeconomic stability, sustainable socio-economic development, and increasing trust in public institutions.

The main trends in the reform of public finance management systems in European Union countries and their impact on shaping Ukraine’s financial policy are analyzed. The need for further harmonization of national budget legislation with European standards is identified, particularly in terms of medium-term budget planning, fiscal discipline, and increased transparency in the use of budgetary resources.

It is emphasized that an important direction of modernization is the digitalization of the public finance management system, which contributes to improving budgetary process efficiency, reducing corruption risks, and strengthening public oversight. Special attention is paid to improving public financial control through the introduction of a risk-based approach and modern analytical tools.

The expediency of deepening fiscal decentralization as an instrument for improving the efficiency of budget resource allocation at the local level and supporting the development of territorial communities is substantiated. The prospects for integrating sustainable development principles and “green” budgeting into Ukraine’s public finance system are also considered.

It is summarized that the further development of Ukraine’s public finance system should be based on a combination of European management standards, digital transformation, and strengthened institutional capacity of public authorities. The implementation of the proposed directions will contribute to improving the efficiency of the budget system, strengthening financial stability, and bringing Ukraine closer to the criteria for membership in the European Union.