PUBLIC FINANCE MANAGEMENT IN UKRAINE: CHALLENGES, LEGAL REGULATIONS, AND THE PRESENT DAY

Abstract

The article reveals the problematic and legal aspects of public finance management. Attention is drawn to the challenges that have disrupted and slowed down public finance management amid the armed conflict in Ukraine: a significant gap between the accumulation of budget resources and their distribution to meet the country's needs; increased spending on the country's defense capabilities; the lack of a unified legal framework for the relationship between executive bodies and local self-government bodies, the presence of corruption risks, the low level of adaptation of European norms and standards, and significant dependence on external financing. The legislative regulations that facilitate the implementation of legal norms and standards ensuring the functioning of the public finance management process have been analyzed.
It has been established that the basic legal platform consists of the Constitution of Ukraine as the basis for the key purpose of public administration, the Budget Code of Ukraine as the process that ensures the movement of the country's funds, the Tax Code of Ukraine, which is an instrument for accumulating budget revenues, as well as the laws of Ukraine for the relevant budget year. It has been established that Ukraine has launched a reform to adapt public investments, which represent state (local) budget funds, funds received in the form of international technical assistance, funds attracted under state (local) guarantees, capital investments of state unitary enterprises and economic companies, in which more than 50 percent of the shares (stakes) belong to the state (except for banks). It has been substantiated that, on the basis of modernized legal regulations concerning the process of public finance management, it is possible to increase its effectiveness and efficiency. Public investment is a priority component of the public finance management process, which, based on budget forecasting and investment planning, contributes to the adaptation of innovative project ideas. A number of measures to improve the process of public finance management are proposed: to strengthen the interconnection between these processes on the basis of modernizing the legal platform; to ensure the timely implementation of planned public investments and the mandatory inclusion of public investment projects in financing programs.
State and local budgets; strengthen control over the procedures for evaluating public investment projects with mandatory compliance with the requirements for the separation of management cycles; ensure the implementation of a monitoring component for the qualitative distribution and rational use of public finances at various stages of project work.