THE FORMATION OF NEW PUBLIC FINANCE MANAGEMENT SYSTEM WITHIN THE FRAMEWORK OF MODERN THEORY OF PUBLIC FINANCE

The article defines the role of public finance management (hereinafter ? PFM) in the system of public administration and explores the essence and features of financial management in the private and public sectors of national economy. The basic approaches of the traditional theory of fiscal federalism; the new public management theory; the theory of new institutional economics; the public choice theory; the policy network theory of governance are examined in the context of determining the specifics of financial management in the public sector. Particular focus is given to the issues of overcoming market failures and government failures that is rather important for ensuring economic efficiency of PFM. The necessity of PFM system structuring is proved in the article.