INNOVATIONS IN THE PUBLIC FINANCE CONTROL – NECESSARY AND REQUIRED
- 1 “D. A. Tsenov” Academy of Economics, Svishtov, Bulgaria
The innovations in the public sector follow those in the business sector. The reasons are at least two – the necessary conservatism of the sector and setting-out of the initiatives of the "top". However, the introduction of innovations in the public organizations is not only necessary, but also mandatory, as it is directly related to the administrative capacity to perform effectively and efficiently their inherent functions.
The operations with the public finances has always been the focus of public attention, which is sensitive to the way of spending taxpayers’ money. Therefore, innovation in this field should be directed towards greater transparency, control, efficiency and effectiveness. Opportunities for that exist in areas such as financial analysis, financial planning and forecasting, development of program budgets, and application of the financial management and control.
Innovative models of public finance management are presented in the paper, with emphasis on the use of cloud technologies for ex-ante control over the spending of budget funds. Such cloud structure was probated in some Bulgarian municipalities and its effectiveness and efficiency was proven in terms of facilitation the work of financial controllers, implementation of rapid control activities, generation of checkups and reports and upgrading the confidence in the operation of control systems.