DEVELOPMENT OF FISCAL POLICY IN THE DIGITAL ECONOMY

Abstract

The article examines the transformation of Ukraine’s fiscal policy within the context of the global transition to a digital economy. The spread of digital technologies such as e-commerce, cryptocurrencies, blockchain platforms, and artificial intelligence significantly influences both the structure of economic activity and the fiscal instruments used by governments. Traditional tax administration models, designed for industrial economies, are no longer sufficient to address the complexities of digital transactions, leading to regulatory gaps, uncollected revenues, and increased tax evasion risks. The study analyzes the current condition of Ukraine's tax system, identifying its insufficient responsiveness to digital challenges. Key problems include difficulties in taxing cross-border digital services, the lack of a clear legal framework for virtual assets, and the limited integration of advanced technological tools in public finance management. Moreover, unequal access to digital infrastructure across regions and population groups hampers the effective deployment of e-taxation services. The paper emphasizes the strategic potential of digital tools such as Big Data analytics, blockchain technologies, and artificial intelligence in improving transparency, accuracy, and efficiency in tax collection. These technologies enable real-time monitoring of economic activities, predictive modeling of budget revenues, and a higher degree of accountability in tax administration. At the same time, the author stresses the urgent need for fiscal policy reforms that are adaptive, inclusive, and harmonized with international practices. Special attention is given to the modernization of legislative and institutional frameworks, the training of public sector professionals in digital skills, and the development of comprehensive strategies for digital fiscal governance. The study concludes that successful fiscal transformation requires a balance between innovation and regulation and that digitalization, if properly managed, can become a key driver for economic growth, fiscal sustainability, and public trust in Ukraine’s tax institutions.