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.

15 In modern economic literature, the term "public sector" is indicated and translated from English as "state sector" or "public sector", which combines the total financial, tangible and intangible assets that the state disposes of to perform its own functions to ensure public interests. As for the general government sector, as can be seen from the figure, this sector unites all branches and levels of government whose task is to perform their functions throughout the territory of the state, including: central, regional and local levels. It does not include those corporations controlled by entities of state government. In modern, established approaches to Public Finance Management (PFM), it is generally accepted that public finances include the general government sector. However, we share the views of those researchers who reasonably argue that public finances should encompass the entire public sector. The political system of a country, the degree of its democratization or, conversely, the closedness of society, the manifestation and development of various forms of dictatorial, totalitarian regimes, affect both the features and the scale of the functioning of the public sector in the country and the development of the public sector. The lack of a clearly defined interpretation in the legislation of Ukraine, as well as the understanding of the concept of "public finances" among scientists, contradictory approaches to the essence, structure, components, assessment and effectiveness of the mechanism for managing them, encourage deeper scientific research. The Law of Ukraine ―On the Transparency of the Use of Public Funds‖ provides an exhaustive list of elements of the public finance system [2]. The Law refers to the concept of "public funds", private finances are outside the system of public finances, which is logical to a certain extent. However, it is worth noting that the definition of "public finances" is not enshrined in this or any other legislative or regulatory act of Ukraine.