The impact of digitalization on the development of social transfers in the public finance system

Abstract

Digitalization significantly affects the development of social transfers in the public finance system, as the latest technologies create new opportunities for managing public spending and distributing financial resources among socially vulnerable segments of the population. The introduction of digital platforms, the use of big data, artificial intelligence and automated systems allows reducing the costs of administrative procedures, increasing the accuracy of targeted payments and ensuring transparency in the distribution of finances. Digital tools also contribute to improving monitoring and control over the effectiveness of social transfers, which allows reducing the level of errors and abuses. One of the main advantages of digitalization is the possibility of quick and unhindered access to social payments, which makes the system more efficient and fair. In addition, digitalization allows facilitating the processes of providing state aid, reducing the time for processing applications and improving the level of service to citizens. At the same time, important aspects are the need to ensure cybersecurity, personal data protection and access to technologies for all segments of the population, including the most vulnerable categories of citizens. The purpose of this article is to determine the specifics of the impact of digitalization on the development of social transfers in the public finance system. The methods used in the work: logical method, induction and deduction methods, analysis and synthesis methods, generalization method, comparison method, observation method, graphical method for presenting the results of the study. The introduction of digital technologies allows to optimize the processes of providing social benefits, reduce administrative costs, and ensure the accuracy and timeliness of the distribution of financial resources among the population. Thanks to the use of big data, automated systems and digital platforms, states can better address social transfers based on the current needs of citizens, which contributes to increasing the fairness and effectiveness of social policy. However, despite the numerous advantages, it is important to pay attention to the issues of cybersecurity, personal data protection and the availability of digital services for all segments of the population, in particular for socially vulnerable groups. Thus, the digitalization of social transfers in public finances can become an important tool for improving the well-being of citizens and ensuring a more efficient and fair use of public funds. However, for the successful implementation of this strategy, it is necessary to take into account both technological and social aspects, ensuring equal access to digital services for all citizens.