PUBLIC FINANCE DEVELOPMENT STRATEGY IN THE CONDITIONS OF MACROECONOMIC INSTABILITY
Authors:   State University of Trade and Economics, Ukraine, Makohon Valentyna , Adamenko Iryna ,   State University of Trade and Economics, Ukraine
Published: December 2023

An important tool for ensuring macroeconomic stability in the conditions of institutional transformations of the socio-economic system is the improvement of the quality level of the public finance management mechanism. The purpose – to reveal the role of public finance as a tool for stabilizing macroeconomic processes, to substantiate the strategic priorities of their development. Solving these tasks determines the logic of the presentation of the material in this work: a literature review of approaches to the development of public finance, the mechanism of public finance management; directions of public finance development; state financial support for the development of human capital; institutional transformations of the financial support of the pension system. Methodology of the study is based on general research methods of analysis and synthesis, induction and deduction, observation and abstraction, which are used to systematize the achievements of the theory and practice of the functioning and development of public finance. Results the role of public finance as a tool for stabilizing macroeconomic processes is determined. The quantitative and qualitative impact of the system of state financial regulation on the economic environment is characterized. It is substantiated that purposeful state financial regulation allows to speed up or slow down socio-economic processes, to ensure the achievement of defined strategic goals and objectives. An assessment of the impact of financial and budgetary policy on economic growth was made, in particular, in the part of substantiating the relationship of the share in the gross domestic product of revenues, including direct and indirect taxes; expenses, including for social protection and social security, economic activity; of direct state and guaranteed debt with real gross domestic product in Ukraine. The share in the gross domestic product of government revenues and expenses, deficit and debt is determined. Justification of the provision regarding the development of the institutional foundations of the development of public finance based on the need to adapt the set of mechanisms of the state financial regulation system to the conditions of the development of the macroeconomic environment and the cyclicality of economic processes; regulations on the formation of financial and budgetary policy and its components. The role of the public finance management mechanism in regulating economic processes and improving the level and quality of life of the population is revealed. The directions of institutional transformations of the public finance system have been determined. Disclosed provisions on increasing the efficiency of the use of state financial resources, improving public debt management tools, developing the institutional environment of public-private partnership, criteria for the distribution of state financial resources in the event of unfavorable dynamics of budget revenues. Proposed provisions on increasing the effectiveness of state financial control and audit, improving the state forecasting system in order to ensure timely implementation of adequate financial and budgetary measures and responding to the socio-economic situation in the country, strengthening the strategic nature of state financial and budgetary forecasts. The importance of the ongoing assessment of fiscal risks in order to ensure stability, stability and balance of the budget system was determined in the modern conditions of the development of public finances; ensuring a sufficient level of flexibility of budget expenditures based on the macroeconomic situation in the country; improvement of regulatory and methodological support of the budget process. Areas of ensuring sustainability and strengthening the financial stability of the pension system have been determined. It is substantiated that in modern conditions, the need to use effective financial instruments of state management of pension provision, which will provide an opportunity to respond to changes in socio-demographic trends in the development of society and economic transformations while maintaining the parameters of stability and stability of pension fund activity, is becoming more urgent. The principles of implementation of institutional transformations of the pension system are disclosed: phased and systematic transformations taking into account social and economic conditions while maintaining the balance of the state finance system as a whole; a differentiated approach to pension provision for different socio-demographic population groups depending on their contributions to pension funds; mutual coherence with the processes of reforming other components of the system of public finances and spheres of public administration; balanced distribution of responsibility for pension provision between the employee, the employer and the state; protection of citizens' rights to financial support in the form of pensions and determination of its level on the basis of well-founded social norms; publicity and transparency of the process of financial support for the functioning of the pension system; compliance of the forms and level of pension provision of the population with the degree of economic development of the countries. The priority directions of financial and budgetary policy in the conditions of institutional and transformational changes of the socio-economic system are determined. the strategic directions of the development of public finances in the conditions of macroeconomic instability are substantiated. Practical implications consist in determining the strategic directions of the development of public finances in conditions of macroeconomic instability. Value/originality. Determining strategic directions for the development of public finances in conditions of macroeconomic instability will contribute to ensuring social development and the adaptability of the public finance management mechanism to macroeconomic processes.