CONCEPTUAL FRAMEWORK OF FURTHER DEVELOPMENT OF PUBLIC FINANCE MANAGEMENT SYSTEM

Abstract

Change management capacity in the public finance management system (PFMS) to a large extent depends on the current state and the degree of development of the national economy; however, in every country there are institutional constraints hindering appropriate reforms. At focus of all stakeholders should be generalized evaluation of implementation of PFMS strategies with characteristics that meet international best practice, avoiding information asymmetry and ensuring the completeness and transparency of data. It is expedient to consistently form the foundation of an integrated managerial thinking on the basis of unified indicators of sustainable development. The effectiveness of regulatory decisions depends on the institutional capacity of national governments and their administrative structures to quickly envisage internal and external risks of destabilization, as well as factors of ambiguity of social end economic realities flow. Implementation of innovations to reform is not always successful because of the lack of strategic direction in the state policy of structural changes. In transition countries, lack of compromise between interests of the public, business and government for political reasons, is often a major obstacle to sustainable economic recovery. Using the updated approaches to PFMS should occur considering space-time factors. Provision of public services according to declared constitutional obligations must be accompanied by the use of transparent mechanisms of revenue and preferences generation in interrelation with transfers, subsidies and expenditure items. When developing detailed plans of changes, one should include priorities and ways to prevent threats of violations of budgetary processes, and strive to maximum effectiveness of continuous cycles of financial resources circulations in income and expenditures.