The Current Trends in the Digital Technologies Development and their Impact on Public Finances

Abstract

Modern digital technologies, based on Artificial Intelligence and Big Data, have a significant impact on various spheres of social and economic life of society. However, digitalization has so far only slightly affected the public finance management system, but this area has a high potential for the implementation of the main technologies of the 4th industrial revolution. The purpose of the article is to study the practical aspects of digitalization in the sphere of public finance and to develop recommendations for the implementation of digital technologies in the budget process. The influence of digital technologies on public finances are examined in the article, in particular, issues of GovTech development - digital transformations of public administration in the area of public finance management are considered, the readiness of the world's economies for digital transformations in the field of GovTech and the place of Ukraine in this process are examined. Particular attention is paid to the issues of ensuring fiscal transparency and public participation in the budget process, as the main factors of digitalization of public finances. The main breakthrough technologies of the 4th industrial (digital) revolution and the prospects of their implementation in the process of public finance management are studied. The results of the study emphasize the importance of increasing fiscal transparency, deepening public participation in the management of public finances, and introducing digital technologies such as Big Data analysis, Machine Learning, Artificial Intelligence, and smart contracts into the budget process.