Digitalization of financial control in budget organizations and evaluation of its impact on socio-economic development indicators

The study is devoted to the analysis of the phenomenon of the digitalization of financial control mechanisms in budget organizations, its study and assessment of the potential role in the efficiency, transparency, accountability and socio-economic effectiveness of public financial management. Particular emphasis is laid on the shift from a traditional, ex-post financial control to an automated, preventive and risk-based monitoring system, which can help to make decisions more quickly and on the basis of evidence. The research method that is used is qualitative and comparative analysis of existing and new financial management mechanisms such as the automated control platform, the processing system based on Big Data, the system of support and analysis by artificial intelligence, the continuous auditing system and the Key Risk Indicators. In addition, the study examines how integrated public databases and cross-platform data exchanged can enhance the accuracy and timeliness of financial oversight. The results show that the use of digital financial control instruments helps to identify financial irregularities early, minimize human-related errors, enhance financial discipline and increase budget expenditure efficiency. Automated and risk-based control mechanisms also enable the possibility of a change in the public financial oversight paradigm from a punitive to a preventive approach, where potentially suspicious transactions can be detected before any financial loss occurs. Besides, digitalization can help better allocate public resources and better target expenditure in strategically important areas like education, health care, social protection, regional development and infrastructure. The study also reveals that an increased degree of integration between treasury, procurement, taxation and other public information systems could help to build greater transparency and improve the quality of public services. Meanwhile, the research reveals a number of challenges that remain, such as the lack of interoperability between public databases, the lack of application of advanced predictive analytics and the lack of proper integration of socio-economic performance indicators with financial controls. The research finds that the creation of a comprehensive and fully integrated Digital Financial Control system, with Artificial Intelligence, automated reporting, continuous audit and performance monitoring can help in the more transparent public financial management, better utilization of the state resources and more sustainable socio-economic development.