Financial and economic calculations in the public sector of the economy

Abstract

The public sector of the economy plays a crucial role in ensuring the political, socio-cultural, and economic functions of the state, including the implementation of budget programs and effective resource management. The effective functioning of this sector requires the use of financial and economic calculations for planning, forecasting and controlling public expenditures. The purpose of the article is to study the importance of financial and economic calculations for the functioning of the public sector of the economy of Ukraine. Methods. The study employed methods of critical analysis of scientific sources, synthesis, tabular presentation, and the method of scientific abstraction. Results.It has been established that financial and economic calculations play a key role in ensuring effective management of public finances. They allow not only to assess revenues and expenditures, but also to conduct an in-depth analysis of the effectiveness of the use of budget funds, identify reserves for increasing financial discipline, and forecast future financial needs of state institutions. Such calculations are an essential tool for forming informed management decisions, as they enable the assessment of the consequences of various financial policy scenarios. It has been demonstrated that the application of such calculations in budget planning for 2025 enables the optimization of resource allocation among defense, social, and other priority areas, considering macroeconomic forecasts and international assistance. It, in turn, contributes to increasing the effectiveness of budget policy, ensuring the economy's flexibility and stability in uncertain conditions. A thorough analysis of scenarios also enables the minimization of risks and increases the transparency of decision-making. Conclusions. It has been established that financial and economic calculations not only enable the estimation of income and expenses, but also facilitate an in-depth analysis of the effectiveness of budget fund utilization, identify reserves for enhancing financial discipline, and forecast future financial needs of state institutions.