Proceedings of the International scientific and practical conference ―Israel Ukraine Forum of Science and Innovation‖ (April 27-29, 2026) / Publisher website: www.naukainfo.com. – Tel Aviv, Israel, 2026. - 262 p.

12 concept, it can be argued that under the conditions of the Soviet system, due to the lack of transparent mechanisms for the formation of budget revenues and budget execution, state, not public, finances existed. After all, the criterion of transparency and publicity of the entire budget process in this situation is decisive for the formation and development of public finances. Speaking of the structure of public finances, it is not limited to state, local budgets, and mandatory social insurance funds, but also includes funds from decentralized funds. For example, the public activities of political parties, other public, voluntary associations (societies), although they are public in nature, if they are focused on satisfying their own interests, rather than performing the functions of general state administration bodies, they cannot be considered public finances. For example, a public association has economic relations that are not imperative. Therefore, it is not obliged to adhere to the principles of openness and publicity in informing the population about its purpose and activities, and moreover, the regulatory legal act does not specify a mechanism for disclosing information. Under such circumstances, the finances of such associations cannot be considered public. The emergence of public finances is closely related to the activities of public authorities, which represent the state as a social institution and perform its functions. This activity is carried out by various levels of government, from central to local, and this determines the economic content of public finances. The democratization of state institutions undoubtedly influenced the activities of state structures, including financial institutions. As a result, authorities decided on the appropriateness of serving the interests of society, which contributed to transformational changes in the system of public administration and the emergence of modern public finances. It is the relations associated with the formation and use of finances to meet the needs and interests of the people using the mechanism of transparency and openness in the management of public funds that are the basis for the formation of public