Implementation of blockchain technology to enhance the transparency and efficiency of public budget fund utilization in the public sector

Abstract

In the context of the ongoing digitalization of the economy, the issue of enhancing the transparency and efficiency of public budget expenditure has become increasingly relevant. Existing financial control mechanisms do not always ensure sufficient openness, accountability, and the prevention of corruption risks. In this regard, blockchain technology emerges as a promising tool capable of ensuring the reliability, immutability, and accessibility of financial data. The aim of this article is to explore the potential of implementing blockchain technology in public financial management and to assess its impact on transparency and efficiency in the budget process. Methods. The study employs a set of general scientific and specialized research methods, including analysis and synthesis to generalize theoretical approaches, comparative analysis to examine international experience, and methods of logical generalization to formulate conclusions. The information base consists of scientific publications, analytical reports, and materials from international organizations on the use of digital technologies in public administration. Results. The article substantiates the feasibility of applying blockchain technology in the management of public funds. Key advantages of its implementation include increased transparency of financial transactions, reduced opportunities for manipulation and corruption, and the automation of control and accounting of budget expenditures. The main areas of blockchain application in the public sector are analyzed, particularly in public procurement, auditing, and financial monitoring. The study also identifies major implementation challenges, including technological, legal, and organizational constraints. Conclusions. It is demonstrated that integrating blockchain technology into the public financial management system has significant potential to improve the efficiency and transparency of the budget process. However, its practical implementation requires the development of an appropriate regulatory framework, the advancement of digital infrastructure, and the enhancement of digital competencies among participants in the budget process. Prospects for further research lie in developing applied models for blockchain implementation within the national economy.