Ensuring transparency of public finances: experience of EU countries

Abstract

The article aims to study the experience of the European Union countries in ensuring the transparency of public finances to identify key instruments, mechanisms, and technologies that contribute to increasing the transparency of the budget process. Their role in reducing corruption and building public trust in state institutions is separately considered. The study uses system analysis, comparison, and generalization methods to study modern approaches to ensure the openness of financial information and the efficiency of using public resources. An analysis of international practices has shown that EU countries are actively implementing innovative technologies, particularly blockchain, electronic platforms, and big data analytics, to improve the accessibility of budget information and increase its comprehensibility for the public. Considerable attention is paid to involving citizens in forming and monitoring budget implementation through public consultations and the publication of understandable reports. A special role is played by independent audit and international standards, such as the recommendations of the International Monetary Fund and the Organization for Economic Cooperation and Development, which form the basis for transparency. The study results show that a level of transparency in the budget process, measured through the Open Budget Survey (OBS), correlates with a level of corruption perception, as assessed using the Corruption Perceptions Index (CPI). At the same time, it was found that transparency is not the only factor affecting the level of corruption and that to achieve maximum effect, it is necessary to implement comprehensive anti-corruption measures. The practical significance of the results obtained lies in formulating recommendations for improving public finance management in Ukraine by introducing innovative technologies, improving the legal environment, and increasing citizen participation in the budget process. This will reduce corruption risks, increase the efficiency of budget funds, and create conditions for strengthening citizens' trust in state institutions, which is important for economic stability and sustainable development.