Ruslana Kryvenkova

The text of this article has been corrected. Information about the changes is provided here http://dx.doi.org/10.21511/pmf.14(2).2025.05

Adjusting the balanced movement of financial flows in the budget process is a vital component of ensuring the functioning of the financial system. This study aims to identify and outline possible areas for improving the management of financial flows in the budget process of Ukraine to regulate structural imbalances of the financial system. With the help of ranking and clustering, the analysis and assessment of local budgets based on indicators that characterize the movement of financial flows was carried out. The used methods made it possible to consider the differences in the formation and direction of budget flows of territorial communities and determine the progress of administrative-territorial units. An assessment of the state of financial flows consolidated in the treasury single account of Ukraine was conducted: the dynamics of balance, the volume of loans and repayments to local budgets, and the Pension Fund of Ukraine were considered. The assessment results made it possible to determine the directions of setting a stable and balanced movement of financial flows and levers to regulate the impact of structural imbalances of the financial system related to the management of cash balances of the treasury single account and increase of its liquidity. The volumes of revenues, expenditures, deficit, and borrowings to the State Budget of Ukraine were estimated to determine the conditions that cause imbalances in the financial system. The directions for timely and complete execution of the decisions by state authorities and local self-governments are outlined.

The Original Article was published on May 23, 2022

Correction
the section INTRODUCTION of this article in paragraph 2, the text was corrected to include the link to the citation source. The sentence now reads: “Increasing the effectiveness of financial flow impact on the budget process contributes to creating conditions for sustainable economic growth and improving the standard and quality of life around the world, including Ukraine (Muringani, 2022).”
In the LITERATURE REVIEW section of this article, the following adjustments were made:
In paragraph 1, the text was corrected to include the links to the citation sources. The sentences now read: “Financial flow management aims to ensure the growth of budget revenues and expenditures, improve the efficiency of budget expenditures, and quality and availability of budget services as a result of transformational changes due to the modernization of the budget process (Bisogno & Cuadrado-Ballesteros, 2021; Renzio & Masud, 2011). These changes include decentralization of the financial system and transition to a medium-term three-year perspective of budget planning that necessitated changes in budget legislation (Muharremi et al., 2020).”
In paragraph 4, the text was corrected to include the link to the citation source. The sentence now reads: “The formation and direction of financial flows are characterized as components of the budget process, which makes it possible to solve problems related to the emergence and reduction of existing structural imbalances of the financial system: the state of revenues and expenditures of budgets; the growing public debt of Ukraine, the presence of a persistent budget deficit (Herold, 2020).”
In the RESULTS AND DISCUSSION section of this article in paragraph 2, the text was corrected to include the link to the citation source. The sentence now reads: “Regulation of structural imbalances in the financial system is possible by improving the management of financial flows in the budget process of Ukraine, which involves the use of an effective mechanism for managing the liquidity of funds balances concentrated in TSA (Moretti et al., 2021).”
In paragraph 38, the text was corrected to include the link to the citation source. The sentence now reads: “Areas of further research on the proper management of financial flows may be related to improving fiscal regulation (Tollini, 2021).”