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

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

Анотація

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.

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