EUROPEAN STANDARDS OF GOOD GOVERNANCE IN PUBLIC FINANCE MANAGEMENT IN UKRAINE

Abstract

The scientific article presents a comprehensive theoretical and practical analysis of the structural and institutional processes involved in implementing European good governance standards within Ukraine's public financial management (PFM) system. The relevance of this study is underscored by the opening of EU accession negotiations under Cluster 1 ("Fundamentals"), which prioritizes Chapter 32 "Financial Control" and Chapter 5 "Public Procurement". Within this framework, the article evaluates the alignment of national oversight institutions with the updated 2023 SIGMA Principles of Public Administration, focusing on Principles 14 and 32, as well as the transition toward the "Value for Money" paradigm and INTOSAI standards. The methodology includes comparative legal analysis, institutional mapping, and risk assessment of financial reforms. The paper examines strategic budgeting under wartime conditions, focusing on the Budget Declaration for 2025–2027, the National Revenue Strategy, and public investment management reform via the Single Project Pipeline. A critical assessment is provided regarding the reform of the Accounting Chamber of Ukraine following the adoption of the Law "On the Accounting Chamber". The authors identify key institutional challenges, particularly the political deadlock surrounding the Advisory Group of Experts (AGE). Furthermore, the article analyzes public internal financial control and the State Audit Service of Ukraine as the national Anti-Fraud Coordination Service (AFCOS). It highlights a legislative gap concerning auditors' authority to monitor private subcontractors under the EU Ukraine Facility program, creating risks for protecting the EU's financial interests and coordinating with OLAF. Based on findings, the authors formulate actionable policy recommendations: resolving the AGE political impasse, legislatively expanding audit powers over private contractors via Budget and Tax Code amendments, formally adopting the National Anti-Fraud Strategy, and introducing cooperative internal audit services at the local government level per SIGMA Principle 27.