ECONOMIC FOUNDATIONS FOR IMPROVING BUDGET POLICY IN THE CONTEXT OF THE MODERN ECONOMY: FINANCIAL RISKS

The relevance of this topic lies in the fact that the modern economy is characterized by significant instability caused by global economic crises, rising public debt, and shifting budgetary priorities. Under these conditions, improving fiscal policy becomes a crucial tool for ensuring financial stability and stimulating economic growth. The issue of financial risk management is particularly pressing, as these risks have a significant impact on the stability of public finances and economic security. The use of modern methods, such as financial underwriting and digital technologies, enhances the efficiency of budgetary process management, making this research topic both relevant and in demand. The objective of this study is to develop theoretical and practical approaches to improving fiscal policy in the modern economy, with a particular focus on financial risk management. The research employed the following methods: analytical method, comparative analysis, economic and mathematical modeling, systems approach, scenario analysis, and stress testing. Key findings of the study include the identification of major challenges in fiscal policy related to the insufficient effectiveness of financial risk management, the proposal of approaches to improving fiscal policy through the use of financial underwriting tools and artificial intelligence technologies, and the development of a model for integrating modern analytical technologies to enhance risk assessment efficiency in the budget system. Additionally, the study substantiates the need for tax reforms aimed at expanding fiscal space and ensuring debt sustainability. The practical significance of this study lies in its potential application for developing budget risk management strategies in government agencies, optimizing fiscal policy while considering the specifics of developing economies, including Kyrgyzstan, implementing modern analytical tools for monitoring and forecasting budgetary risks, and enhancing the efficiency of public debt management to minimize its impact on economic sustainability.