The role of external public audit in ensuring the financial stability of the budgets of developing countries

Abstract

The system of external state audit reveals the potential for structural changes in terms of making effective management decisions that ensure the rational consumption of investment and other resources, taking into account the organizational and economic level of development. Based on the experience of foreign countries, it should be noted that in developed countries audit is the leading form of independent control. The purpose of this article is to determine the role of external public audit in ensuring the financial stability of the budgets of developing countries. To assess the financial stability of budgets, traditional methodological approaches, i.e. the analysis of absolute indicators and analysis of relative coefficients are used. In the study, financial stability was examined in the context of the possibility of evaluating the state audit of the budgets of developing countries for all expenses of the republican budget without raising the level of public debt. As a result of consideration of the budgets of developing countries, the problems were identified and the directions for their solution were proposed. In addition, tools which allow not only assess the financial stability of the budget, but also determine recommendations for managerial impacts aimed at strengthening the state budget are proposed. Thus, conducting a state audit in order to increase financial stability will lead to an increase in the efficiency of public administration and to a greater alignment of mechanisms for implementing state programs and projects with strategic planning mechanisms.