PRINCIPLES OF THE LEGAL REGIME OF BUDGET FUNDS IN THE CONTEXT OF SOUND PUBLIC FINANCIAL MANAGEMENT

Abstract

This article explores the legal and economic principles underlying the legal regime of budget funds, with a view to ensuring sound public financial management. It focuses on identifying and systematising the fundamental principles that govern the use of public budget resources, such as efficiency, transparency, legality, accountability and targeted use. Particular attention is paid to the interconnection between these principles and their practical implementation in Ukraine during the post-reform and wartime periods. Methodology. The study employs a combination of economic and legal analyses, incorporating a systematic review of legislation, an evaluation of fiscal policy, and an analysis of budget execution data and public audit reports. The research also considers EU practices and OECD standards in public finance governance, integrating comparative approaches. Results. The findings demonstrate that, although the principles of sound financial management are formally recognised in Ukrainian budget legislation, their practical application remains inconsistent. The implementation of budget governance is hindered by institutional and procedural shortcomings, a lack of transparency, and limited accountability mechanisms. The findings from international studies indicate that the presence of legal clarity, procedural safeguards, and integrated audit systems is imperative in achieving both fiscal discipline and social outcomes. Practical implications. The article's findings are outlined in a series of legal and policy recommendations, the aim of which is to strengthen the budgetary legal framework and promote institutional reforms. These include the enhancement of regulatory clarity, the facilitation of public access to budget information, the expansion of the powers of oversight bodies, and the adoption of a results-based management approach. Value / Оriginality. The article provides a structured analysis of the fundamental principles of the legal regime of budget funds and their role in enhancing the quality of fiscal governance. The research contributes to the ongoing discourse on legal mechanisms for the management of public funds in emerging economies, with a particular focus on fragile and conflict-affected contexts.