PUBLIC SPENDING IN THE ERA OF DIGITAL TECHNOLOGY

The aim of the article is to study transformation of public expenditures in the context of a global trend of the digital economy development and the information society formation. Based on the analysis of scientific publications, the fundamental approaches to understanding public consumption and the system of state purchases have been determined. Obviously, global automation and digitalization of financial processes require significant changes in the public spending policy. The main effects of innovative digital paradigm on transparency and efficiency of state expenditures are determined. Considerable attention is paid to the introduction of electronic public procurement system ProZorro. The expediency of its implementation in national practice of budget expenditures is substantiated, the principles and procedures of implementation are analyzed. The dynamics of public procurement in Ukraine is summarized. The conclusions on the advantages of electronic system are made, including transparency and impartiality, stimulation of competition and non-discrimination of bidding participants, reduction of corruption, the effect of reducing the savings of budget funds for the growth of public welfare. The potential risks, threats and shortcomings of the ProZorro system are highlighted.