Olga Zykova: The Ministry of Finance prioritizes transparency and accountability to the Ukrainians and international partners. Digitalization contributes to this process

On July 11, Deputy Minister of Finance of Ukraine Olga Zykova participated in a discussion panel on the role of artificial intelligence and digitalization in economic development and recovery. The event was held as part of the Constituency Meeting of the International Monetary Fund and the World Bank in Chisinau, Moldova. 

The event brings together high-ranking officials, representatives of central banks and ministries of finance of IMF and WB member countries, as well as management and representatives of the Fund and the Bank.

Olga Zykova spoke about the use of digital technologies by the Government of Ukraine in the areas of public finance management, public investment, and reforms. She also spoke about how innovations affect the efficiency of the use of public funds and generally optimize the operation of the Ministry of Finance. 

"Digitalization is primarily about increasing efficiency, optimizing public administration processes, and transparency to citizens and partners. Even in the conditions of a full-scale war and the numerous challenges it provokes, the Ministry of Finance continues to implement systematic measures to digitalize its processes. 

In the first half of 2024, two analytical tools were published to monitor civil servants' wages and the implementation of reforms in Ukraine. Measures are also being taken to improve IT technologies in public finance management. IT solutions for public investment management are being developed, which will contribute to recovery efforts through effective decision-making on project selection and use of funds," Olga Zykova said.   

In the first half of 2024, the Ministry of Finance reviewed, adapted and automated IT technologies in the field of public finance management. In particular, the piloting of an automated information system for online interaction with State Budget spending units was successfully completed, which automates the activities of the Ministry of Finance of Ukraine, key spending units, lower-level spending units and budget recipients in the budget planning process and ensures the exchange of electronic documents between the Ministry of Finance of Ukraine and participants in the budget process at the State Budget level.

This year, as part of the implementation of the Strategic Plan for the Implementation of Digital Development, Digital Transformation and Digitalization of the Public Finance Management System until 2025, the Ministry of Finance is implementing an information and analytical system for budget planning and monitoring of the state budget.

The Ministry of Finance has also developed and published an analytical tool on the wages and number of employees of state authorities, local state administrations and the judiciary based on automated and comprehensive data analysis. 

The Government of Ukraine recently presented the Reforms Matrix, an analytical tool that systematizes the conditionalities and recommendations of Ukraine's international partners in key areas. This tool facilitates the effective implementation and monitoring of all planned reform measures. It also ensures transparency and accountability in the implementation of policies agreed with partners. 

This year, the Government of Ukraine launched a public investment management reform. The reform aims to ensure strategic planning of investments, their prioritization, unified approaches to project selection, and strong implementation capacity in the public sector.

"The use of digital technologies is critical for a comprehensive reform of public investment management.  The Government of Ukraine is developing an integrated IT ecosystem that will ensure an optimal decision-making process based on the country's strategic priorities and needs. This tool will also increase the transparency of the Government's work in attracting investments," Olga Zykova said.  

It was noted that the Ministry of Finance has plans to improve public financial IT processes in the medium term, which is also envisaged by the National Revenue Strategy.

The Ministry of Finance is planning to implement IT consolidation of information resources of the public finance management system entities - the State Tax, Customs, Audit, Treasury and Financial Monitoring Services. Thus, a single information and communication system will be introduced in the public finance management system. This will increase the level of transparency and openness of data using information technology, improve interagency cooperation, eliminate the influence of the human factor on information processing, and improve the quality of public services and administrative services.

Summarizing, Olga Zykova emphasized that the digitalization of the Government of Ukraine is of great importance in all possible areas, including the financial sector, reconstruction, and defense of the country during the war, fighting corruption, and ensuring comfortable conditions for Ukrainians. Ukraine is already one of the world's leaders in digitalization. The implementation of IT technologies is a clear priority of the Government of Ukraine.