Ways to Strengthen Financial Control over the Use of State Budget Funds

Abstract

This study investigates contemporary approaches to strengthening financial control over the use of state budget funds, with particular attention to improving the efficiency, transparency, and effectiveness of public financial management. The research examines the dynamics of state budget revenues and expenditures, the results of financial control activities, major financial risks, and the application of digital technologies in monitoring the use of public funds. Particular attention is given to the transition from traditional post-expenditure verification toward a preventive, risk-based, and results-oriented model of financial control. The study analyzes the potential of preliminary risk assessment, digital monitoring, remote auditing, artificial intelligence, and Big Data technologies for identifying high-risk transactions and preventing inefficient or illegal expenditures. The findings indicate that the effectiveness of financial control should be assessed not only by the number of identified violations but also by the volume of prevented losses, optimized expenditures, recovered funds, and identified additional revenue sources. The study also emphasizes the importance of strengthening risk-based control in public procurement, integrating financial auditing with performance auditing, and establishing continuous post-audit monitoring. Based on the findings, practical recommendations are proposed for improving the digitalization of financial control, strengthening preventive mechanisms, enhancing public procurement monitoring, and shifting the assessment of financial control toward measurable financial and socio-economic outcomes.