DIRECTIONS OF BUDGET POLICY TO ENSURE THE FINANCIAL SECURITY OF THE STATE

Ivan Harchenko

doi:10.32782/2707-8019/2024-1-15

Ivan Harchenko Private Higher Educational Establishment «European University» https://orcid.org/0009-0003-5193-2561

DOI: https://doi.org/10.32782/2707-8019/2024-1-15

Keywords: budget policy, financial security of the state, national economic security, foreign experience, budget policy instruments

Abstract

Improving the budget process is a key factor in strengthening the financial stability of a country. This paper looks at a comprehensive approach to budget policy reform, including transparency and accountability, long-term financial planning, effective public financial management, fair tax policy and social justice. Transparency of the budget process facilitates public control and reduces corruption risks. Long-term planning allows to consider future challenges and potential economic risks. Effective public financial management includes the optimal allocation of funds to priority sectors and minimisation of unproductive spending. A fair tax policy ensures stable budget revenues, stimulating economic activity. Social policies aimed at reducing poverty and inequality also play an important role in ensuring economic stability. The development of the financial sector, a sound regulatory framework, and effective bank supervision to prevent financial crises are also important. International cooperation, the adoption of best practices and standards, and effective public debt management are essential for financial stability. Risk management, stabilisation funds, and the institutional capacity of public administration increase resilience to unforeseen circumstances. Public participation and the use of innovative technologies in the budget process contribute to its efficiency. Coordination between different levels of government and consideration of international trends allow budget policy to be adapted to external challenges. Monitoring and evaluation of the budget policy effectiveness ensure adjustments and improvement of the efficiency of public finance management. Thus, an integrated approach to the budget process contributes to the achievement of financial stability and economic sustainability of the state. Effective management of budgetary resources is a key element for maintaining economic stability, reducing the risks of financial crises and ensuring sustainable development. Important components include increasing the transparency of the budget process, strengthening the institutional capacity of financial authorities, and introducing monitoring and control mechanisms. Ensuring the financial security of the state requires constant adaptation of the budget policy to changes in the global and domestic economic environment, as well as readiness to respond quickly to possible challenges and threats.

References

Baranovsky О. І. (2014) Finansova bezpeka v Ukraini (metodolohiia otsinky ta mekhanizmy zabezpechennia) [Financial security in Ukraine. Evaluation methodology]. Кyiv: KNTEU. (in Ukrainian)

Britchenko I., Bohomolova N. I., Kravchenko O. O., Pinchuk S. S. (2018). Assessment of The Determinats of Financial Security of Rail-

Britchenko I., Bohomolova N. I., Kravchenko O. O., Pinchuk S. S. (2018) Assessment of The Determinats of Financial Security of Rail-ways in Ukraine. Financial and credit activity: problems of theory and practice, no. 4(27), pp. 270–281.

Glushko A. D., Pantas V. V., & Babenko S. R. (2022) Informatsiina polityka v systemi zabezpechennia finansovoi bezpeky derzhavy [Information policy in the system of financial security of the state]. Efektyvna ekonomika – Efficient economy, no. 2. Available at: http://www.economy.nayka.com.ua/ ?op=1&z=10038 (in Ukrainian)

Haber, J,A., Bukhtiarova, A., Chorna, S., Iastremska, O., Bolgar, T. (2018). Forecasting the level of nancial security of the country (on

Haber J. A., Bukhtiarova A., Chorna S., Iastremska O., Bolgar T. (2018) Forecasting the level of financial security of the country (on the example of Ukraine). Investment Management and Financial Innovations, no. 15(3), pp. 304–317

Kurylo, M., Klochko, A., Zhuravlov, D., Javadov, H. (2018). Economic and legal aspects of banking security under European integra-

Kurylo M., Klochko A., Zhuravlov D., Javadov H. (2018) Economic and legal aspects of banking security under European integration intensication in Ukraine. Banks and Bank Systems, no. 13, pp. 162–172.

Panteleeva N. M. (2020) Finansova bezpeka v umovakh tsyfrovoi ekonomiky: ochikuvannia i realnist [Financial security in the digital economy: expectations and reality]. Finansovyi prostir – Financial space, no. 2(38), pp. 22–37. (in Ukrainian)

Siemiątkowski P. (2017) External financial security of the European Union member states outside the Eurozone. Journal of International Studies, vol. 10, pp. 84–95.

Siemiątkowski, P. (2017). External nancial security of the European Union member states outside the Eurozone. Journal of Interna-

Skoryk M., Bohdan S. (2020) Risk management tools in the system of public financial control. Efektyvna ekonomika – Efficient economy, no. 5. Available at: http://www.economy.nayka.com.ua/?op=1&z=7932

Skoryk M. O. (2020) Organization of state financial control in order to ensure sustainable economic development. Stratehiia ekonomichnoho rozvytku Ukrainy – Strategy of economic development of Ukraine, no. 46, pp. 144–156.