IDENTIFICATION OF THE MAIN FACTORS OF THE GROWTH OF FINANCIAL VIOLATIONS IN THE PUBLIC SECTOR AND DIRECTIONS FOR THEIR MINIMIZATION

Abstract

The state financial control bodies of Ukraine record quite high volumes of financial violations from year to year. In conditions of a significant deficit of funds for conducting military resistance to the aggressor and making other important social expenditures, a significant increase in the volume of financial violations and shortcomings in the management of public finances in the amount of UAH 258.7 billion, established by the Accounting Chamber of Ukraine and the State Audit Service of Ukraine for 2024, actualizes the study of the causes of the current situation. The purpose of the article is to determine the reasons for the increase in the volume of established financial violations and measures to further minimize them. The methodological basis of the study is dialectical, abstract-logical, bibliographic and graphic methods, as well as methods of induction, deduction, analysis and synthesis, with the help of which the exogenous and endogenous causes of the growing level of financial violations are identified, and generalized recommendations are formulated to minimize their occurrence in the future. According to the results of the study, it was found that: the activities of state financial control bodies can be considered effective in general, but do not lead to a decrease in financial violations in the future; the main reason for the existence of a large volume of financial violations, and in some cases their significant increase, are the shortcomings of personnel policy in the public sector of the economy, inadequate response to the ineffective activities of heads of public sector entities, as well as to recommendations based on the results of control measures. In order to eliminate the described exogenous and endogenous causes of the unsatisfactory state of management of state property and state resources, it is proposed to: improve the general methodology of control measures and implement procedures for applying hypotheses of violations and versions of their commission, which will allow: to optimize the control process, establish cause-and-effect relationships of the identified violations, develop recommendations for their elimination and prevention in the future, create the necessary evidentiary base for further compensation for the damage caused in court. The need is also identified: completion of the modernization of state financial control, the public administration system in compliance with EU requirements, public finance management reform; improvement of the procedures for electing heads of public sector entities to positions and assessing the effectiveness of their performance in office. The implementation of the proposals outlined will help reduce the volume of financial violations and improve both operational management at the micro level and strategic planning of state property and public finance management processes at the macro level. Prospects for further research are to conduct interdisciplinary research and determine methodological foundations and develop practical measures aimed at completing the modernization of public administration and public financial control.