Forecast of the digitalization impact on public financial management

Abstract

Modern digital technologies based on artificial intelligence and big data have a significant impact on many areas of the socioeconomic life of society. At present, digitalization has not affected the public financial management system to a small extent. However, this particular area has a high potential for the use of big data and artificial intelligence, as it is based on significant amounts of information, including unstructured information. At the same time, the process, mechanism and forms of the digital technologies impact on public finance management have been little studied in the scientific literature. The paper forecasts changing in the public financial management system that may occur under the influence of digital technologies in the medium and long term. The authors used a methodical approach based on extrapolation for forecasting. Nowadays, digital technologies have significantly influenced some sectors of the socio-economic people’s activity. The forms and mechanisms of such influence had been extrapolated to the public financial management system and, primarily, to various stages of the budget process.

Keywords

• artificial intelligence
• digital technologies
• budgeting process
• public finance management
• budget planning
• budget approval
• budget execution
• state procurements
• new public management