Strategic determinants of change management in the national fiscal space

Introduction. In Ukraine, despite martial law, global, regional, and national turbulence, successful reforms of the public finance system as well as its fiscal component are underway, taking into account international obligations and the EU accession roadmap. In the context of accelerating these transformations, highly contradictory shifts are taking place. Therefore, the course for change management must be implemented with adaptation to the new economic reality. Problem Statement. The time for strategic transformations has come, both globally and at the level of individual states with one of the key vectors being the strengthening of fiscal stability and the buffer potential for the likely negative scenarios of future significant shocks. Purpose. To define the directions for improving change management in the context of the interaction between debt, monetary, and other factors of the fiscal space. Methods. Methods of analysis, synthesis, statistical grouping, comparison, theoretical generalization, and abstract-logical methods were used. Results. Currently, fragmentation trends are increasing in the multipolar space. International alliances and multilateral institutions of the global order, established since World War II, are losing their potential for forming common planetary goals and ways for their achievement. It is necessary to adapt the directions of coordinating sustainable state policy to modern realities in the context of its structural and financial (fiscal, monetary) components. The main long-term tasks include neutralizing the multiplicative effects of uncertainty, in particular the strengthening of institutions. The key benchmarks are the transformation of fiscal rules and prospects for their reforming in Ukraine in compliance with EU norms, medium-term budget planning as a financial mechanism of updated governance, as well as measures for the implementation of innovations in the context of harmonizing national legislation with progressive practice of implementing international regulatory standards. Conclusions. Solving the issues of expanding the fiscal space has become an integral part of strategic change management in economic policy. The formation of budget reserves acquires a completely different context if the government supports a balanced debt policy in a favorable macroeconomic and institutional environment, as well as takes development budgeting measures in the short term. The creation of an additional resource for increasing state and local expenditures, which contribute to the factors of promising economic growth (quality of human capital, science, technology, innovation), the comprehensive implementation of social justice principles for both present and future generations (the establishment of national welfare funds, pension and social insurance, structural reforms, regional equalization, etc.) is becoming increasingly relevant.