Public finance management reform in the Kyrgyz Republic and Ukraine: Ways to increase transparency and efficiency in the use of budget funds

The purpose of the study was to analyse the existing problems of using the budgets of the Kyrgyz Republic and Ukraine and to develop recommendations for improving the management of public funds in the two countries. A comparative analysis of public finance management in Ukraine and Kyrgyzstan for the period 2019-2023 was carried out based on official statistical data, government programmes, and other theoretical sources. As a result of the analysis, it was found that budget deficits are typical for both countries. This situation has been observed in two countries for 2019-2023, with the exception of the situation in Kyrgyzstan in 2023. The annual increase in public debt is typical for both countries. For Kyrgyzstan, over the period 2019-2023, by more than 75.1%, and for Ukraine – by more than 3 times. Also characteristic of the two countries is the annual decrease in the transparency of the use of budgetary funds with deterioration in indicators by 25 points for Ukraine and 2 points for Kyrgyzstan for the period 2019-2023. As a result of the analysis, the main measures to improve the current situations in the two countries were identified: attracting foreign capital and changing the structure of expenditures and revenues to reduce the budget deficit, and digitalisation of public budget management and increasing the level of digital literacy of management staff to increase transparency in the use of public finances. It is more difficult for Ukraine to achieve such an effect, given the state of war. Such measures should be implemented gradually step by step for their synergistic effect as a result