Concept and essence of digital transformation in public finance

Krynytsia Serge
PhD in Economics, Doctoral Candidate of State Tax University, Irpin, Ukraine, E-mail:serge.krinitsa@gmail.com, ORCID ID: https://orcid.org/0000-0002-5569-4682

Cite this article:

Krynytsia S. (2024) Concept and essence of digital transformation in public finance. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Poniattia ta sutnist tsyfrovoi transformatsii u publichnykh finansakh; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 3-4 (316-317), pp. 63-70.

Abstract

The purpose of the research is to deepen the theoretical aspects of digital transformation in public governance and finance, as well as to provide an author's interpretation of the economic category "digital transformation in public finance". The methods of analysis (for analyzing scientific sources) and generalization (identifying directions of conceptualization of digital transformation and providing a definition of digital transformation in public finance), graphical (for graphical representation of trends) have been used in the work. Results. Scientific views on the digitization and digital transformation of the economy have been systematized and generalized, and 3 groups of conceptualization directions of digital transformation have been identified: technological, organizational, and social. Three stages of digital transformation, including digitization, digitalization, and actual digital transformation, have been noted and delineated. An author's definition of the concept of "digital transformation in public finance" is provided as a comprehensive process of changing the model of public finance management under the influence of the implementation of digital technologies, aimed at broad public involvement in decision-making systems. The current stage of digital transformation in public finance in Ukraine has been analyzed, highlighting the advantages and challenges on the path of digital transformation of public finances. The practical significance of the obtained results lies in the possibility of further development of effective strategies and mechanisms of digital transformation of public finances, which will contribute to increasing the efficiency of management, enhancing transparency and openness, as well as increasing public trust in government bodies and their involvement in decision-making in the field of public finances. The research results can serve as a basis for the development and implementation of specific programs and projects on digital transformation aimed at achieving strategic goals in the field of public finances. Such an approach will allow Ukrainian government agencies to effectively adapt to the challenges of the modern digital world and ensure sustainable development of the economy and society as a whole.

Keywords

digital transformation, public finance, public management, digitalization, digital government, Gov.2.0, public engagement, digitization.

JEL classification: A100; G280; H300; H720; O330; DOI: https://doi.org/10.32680/2409-9260-2024-3-4-316-317-63-70

UD classification: 330.1:336.1:004

References

1. Lardi, K. (2022). The Human Side of Digital Business Transformation. Wiley. DOI: 10.1002/9781119871040
2. Gartner. Digitization. Retrieved from https://www.gartner.com/en/ information-technology /glossary/digitization (accessed: Mart 18, 2024).
3. Zahriychuk, M. Yu. (2020). To the problem of defining the concept, essence and content of digital transformation of the region. Yurydychna nauka. 3 (105). DOI: https://doi. org/10.32844/2222-5374-2020-105-3.22 [In Ukrainian].
4. Mergel, I., Edelmann, N., Haug, N. (2019). Defining digital transformation: Results from expert interviews. Government Information Quarterly: Conference Paper, 1-16.
5. Kruglov, V. (2021). State policy of labor market transformation: challenges of the digital era. Naukovyi visnyk: Derzhavne upravlinnia, 1(7), 140-161. [In Ukrainian].
6. Moore, J., Pratt, M. (2023) What is digital transformation? Everything you need to know. Retrieved from https://www.techtarget.com/searchcio/ definition/digital-transformation
7. Strutynska, I. V. (2019). Definitions of the term "digital transformation". Prychornomorski ekonomichni studii, 48-2, 91-96. [In Ukrainian].
8. Pereira, C. S., Durão, N., Moreira, F., Veloso, B. (2022). The Importance of Digital Transformation in International Business. Sustainability, 14, 834, 1–26. DOI: https://doi. org/10.3390/su 14020834
9. Oleshko, A. A., Pavlyuk, K. M. (2022). Digital transformation of the sphere of municipal property management of the city. Derzhava ta rehiony. Seriia: Publichne upravlinnia i administruvannia, 3 (77). 84-88. [In Ukrainian].
10. Verina, N., Titko, J. (2019). Digital transformation: conceptual framework. International Scientific Conference „Contemporary Issues in Business, Management and Education“, International Scientific Conference „Contemporary Issues in Business, Management and Economics Engineering". DOI: https://doi.org/10.3846/cibmee.2019.073
11. Novak, I. M. (2021). Transformation of personnel management in the organization's digital ecosystem. Sotsialno-trudova sfera v koordinatakh novoi ekonomiky ta hlobalnoi sotsioekonomichnoi realnosti: vyklyky, shliakhy rozvytku: zb. tez dop. uchasnykiv Mizhnar. nauk.-prakt. konf.. Kyiv. KNEU, 2021. 218-220. [In Ukrainian].
12. Humenna, Yu. H., Hura, O. Yu. (2021). Trends in the implementation of digital transformation in the activities of business entities. Visnyk Sumskoho derzhavnoho universytetu. Seriia Ekonomika, 2, 202−210. DOI: 10.21272/1817-9215.2021.2-24. [In Ukrainian].
13. Deloitte. (2017). Rewriting the Rules for the Digital Age. Deloitte Global Human Capital Trendsю Deloitte University Press. Retrieved from https://www2.deloitte.com/content/dam/ insights/us/articles/HCTrends_2017/DUP_Global-Human-capital-trends_2017.pdf
14. O'Reilly, T. (2011). Government as a Platform. Innovations: Technology, Governance, Globalization, 6, 13-40. DOI: 10.1162/INOV_a_00056
15. Ushkalenko, I. M., Zelinska, Yu. S. (2019). Information and communication technologies as the basis of public administration on the path of digital transformation and reform. Efektyvna ekonomika, 11. Retrieved from http://www.economy.nayka.com.ua/pdf/11_2019/53.pdf DOI: 10.32702/2307-2105-2019.11.51 [In Ukrainian].
16. Kabinet Ministriv Ukrayiny [Cabinet of Ministers of Ukraine]. (2017). Pro skhvalennya Kontseptsii rozvytku elektronnoho uriaduvannya v Ukraini [On the approval of the Concept of the development of electronic governance in Ukraine]. Rozporyadzhennya. 649-r. Retrieved from: https://www.kmu.gov.ua/npas/250287124 [In Ukrainian].
17. Tejedo-Romero, F., Araujo, J.F., Tejada, A., Ramírez, Y. (2022). E-government mechanisms to enhance the participation of citizens and society: Exploratory analysis through the dimension of municipalities. Technology in Society, 70, 101978. DOI: https:// doi.org/10.1016/j.techsoc.2022.101978
18. Krynytsia, S. (2023). Modern trends in the development of digital technologies and their impact on public finances. Zbirnyk naukovykh prats Derzhavnoho podatkovoho universytetu, 2, 82-120. DOI: https://doi.org/10.33244/2617-5940.2.2023.82-120 [In Ukrainian].