General Overview of the Scientific School

The domain of financial science is extensive and multifaceted, encompassing public, corporate, and international finance, household finance, insurance, and financial markets, each distinguished by its purpose, organizational structure, and operational principles. While all these areas play a critical role in meeting the needs of the economy, the state, and society, public finance occupies a central position within the financial system. Through the mechanisms of public finance, the allocation and redistribution of a portion of GDP facilitate the execution of state financial policy, which is directed toward ensuring sustainable development and enhancing societal welfare.

Within this framework, the principal research trajectories of the scientific school of public finance include:

• The objectives, structural components, instruments, levers, and mechanisms underpinning the implementation of the state’s fiscal policy;
• Budgetary policy in the context of macro-financial stabilization and sustainable development;
• Taxation and tax administration, including optimization of the tax system and tax reform;
• Rationalization of budget expenditure financing systems and mechanisms, including targeted funds;
• Optimization of the scope and mechanisms of deficit financing in state expenditures;
• Development of an efficient budgetary system and the strengthening of the financial foundation of local self-government;
• Public debt management and engagements with international creditors;
• Risk management within budgetary and tax systems.

Historical Development and Methodological Foundations

The Ukrainian scientific school of public finance was established in the 1980s within the Department of Finance at Kyiv National Economic University (KNEU). Its distinguishing characteristics can be delineated across three fundamental dimensions of financial research.

Firstly, the school is grounded in an in-depth theoretical exploration of public finance, employing methodological approaches rooted in philosophical inquiry. This allows for a profound analysis of the essential characteristics of core financial categories, including taxation, budgeting, and public debt. The outcomes of this research provide a robust theoretical foundation for the construction of an effective system of state and local financial management.

Secondly, the school engages in both theoretical and applied research concerning the formulation and implementation of state financial policy. A particular focus is placed on ensuring macroeconomic stability and fostering sustainable economic development. Within this context, the research not only investigates the specific financial challenges faced by Ukraine but also incorporates comparative analyses of financial policies in countries with developed market economies. Such comparative evaluations serve as a basis for shaping financial strategies and policy directions for the evolving Ukrainian state.

Thirdly, the school continuously explores and develops new research directions that incorporate systemic approaches to understanding the functionality of financial systems, with a particular emphasis on public finance. Notably, contemporary research endeavors are oriented toward examining financial infrastructure as a critical enabler of economic and societal stability, as well as advancing the field of macro-finance, where public finance and financial markets constitute its foundational elements.

Academic Legacy and Contributions to Global Financial Thought

The development and continued success of modern scientific schools in Ukrainian financial studies are largely attributable to the rich intellectual heritage of Ukrainian financial scholars from the late 19th and early 20th centuries. Among the most influential figures in this domain are M.M. Alekseyenko, A.Ya. Antonovich, M.Kh. Bunge, S.I. Illovaisky, A.O. Isayev, Y.F. Kulisher, P.P. Migulin, M.I. Mitilino, I.I. Patlaevsky, H.F. Sydorenko, I.T. Tarasov, V.M. Tverdokhlebov, M.M. Tsytovych, I.I. Yanzhul, M.P. Yasnopolsky, and others.

The theoretical framework for the study of public finance within Ukrainian academic discourse has traditionally been predicated upon a foundational triad: needs – expenditures – revenues. Early Ukrainian scholars posited that practical budgetary processes should commence with a comprehensive assessment of societal and state needs, followed by an estimation of the corresponding expenditure requirements, and, finally, the identification of appropriate revenue sources to sustain these expenditures.

Ukrainian financial scholarship has made significant contributions to global economic thought, particularly in advancing theoretical conceptualizations of the budget as a multidimensional economic instrument. The traditional view of the budget as a mere plan for revenue and expenditure allocation has been expanded to encompass its broader functions as an instrument for national wealth redistribution and macroeconomic regulation. Additionally, Ukrainian scholars have contributed substantially to the study of the territorial distribution of financial resources and the development of local finance systems, further enriching both theoretical and practical dimensions of fiscal policy research.

Foundations and Evolution of Public Finance Research in Ukraine

The pioneering research on public finance conducted by the founders of Ukrainian financial science laid the groundwork for the conceptual development of Ukrainian financial thought. It established a solid foundation for future generations of financial scholars, including those affiliated with the Department of Finance at Kyiv National Economic University (KNEU), one of the oldest academic departments at the institution. The department traces its origins to the Department of Financial Law at the Kyiv Commercial Institute, established in 1906. Among its early leaders were prominent scholars and administrators of financial science, including P.L. Kovanko, M.I. Mitilino, L.M. Yasnopolsky, and V.V. Karpeka, whose intellectual contributions played a crucial role in the formation of the scientific and educational tradition of public finance.

Given the central role of taxation within the public finance system, research efforts within this scientific school have been primarily focused on optimizing tax burdens. The portion of national product appropriated through taxation follows a distinct trajectory within the financial system, actively contributing to the execution of fiscal policy. However, taxation, like finance as a whole, embodies inherent tensions in the relationships among taxpayers, the state, and beneficiaries of public goods. Consequently, research has demonstrated that the development of a balanced tax system must be based on harmonizing the interests of all stakeholders. Attempts to address tax-related issues either by unreasonably lowering the overall tax burden to stimulate economic growth (as observed in Ukraine over an extended period) or by increasing tax pressure during economic crises have consistently failed to yield the expected outcomes. Instead, resolving tax-related challenges requires a democratic system of checks and balances that ensures the maximum possible alignment of interests among all parties involved.

A significant area of research within the scientific and educational school of public finance has been the optimization of state and local budget expenditures. Since the early 2000s, academic publications have repeatedly highlighted the unjustified increase in Ukraine’s government spending on administrative functions, the disconnect between the declared social orientation of the budget and the actual financial capabilities of the state, and the unacceptable decline in the state’s active role in investment processes aimed at economic development. To optimize expenditure structures, scholars have proposed the development of a financial strategy for Ukraine, outlining clear priorities in economic and social policy.

With regard to deficit financing, it has been emphasized that such financing should be approached with caution, considering both national needs and existing risks. Threshold indicators for budget deficits and public debt as a percentage of GDP should take into account internationally accepted benchmarks (2-3% and 60%, respectively), while also reflecting the economic realities and financial standing of the country. In terms of debt financing sources, scholars have argued for prioritizing external state loans, particularly from international financial institutions, as they contribute to the growth of financial potential. Domestic borrowing should only be utilized within limits that do not divert resources away from the real sector of the economy.

Extensive research within the scientific school has also been devoted to the development of local finance, optimization of budgetary structures, and rationalization of intergovernmental fiscal relations. For a long period, Ukraine operated under an excessively centralized budget system, where the system of budget equalization grants fostered a "budget communism" ideology. Under this model, local authorities lacked both the financial autonomy and incentives necessary for sound fiscal management and regional development. As a result, the introduction of modern budgeting technologies at both national and local levels was significantly hindered, thereby obstructing the formation of a contemporary public finance system. Addressing these challenges requires structural reforms aimed at decentralizing budgetary resources, strengthening local financial autonomy, and fostering a more efficient and accountable fiscal framework.

A significant milestone in the academic development, institutionalization, and advancement of the public finance school was the publication in 1992 of the monograph "State – Taxes – Business (from the World Experience of Fiscal Regulation in a Market Economy)" by V.M. Sutormina, V.M. Fedosov, and V.L. Andrushchenko. This work provided a comprehensive analysis of the evolution of tax systems globally, identifying fundamental principles and strategic directions for the implementation of accumulated international expertise in Ukraine. Given the transitional nature of the Ukrainian economy in the early 1990s, this study played a pivotal role in shaping the theoretical and practical approaches to fiscal policy within the emerging market framework.

A substantial contribution to the conceptualization of public finance was made through the publication of three seminal monographs, each unified by the overarching objective of designing a rational, resilient, and effective financial system in Ukraine, with public finance as its core component. The monograph "Financial Restructuring in Ukraine: Problems and Directions" (2002) by V.M. Fedosov, V.M. Oparin, and S.V. Lyovochkin critically assessed the outcomes of economic and financial reforms undertaken in the 1990s and delineated strategic imperatives for the financial system aimed at fostering sustainable economic growth. The 2013 collective monograph "Innovations in the Financial Sphere", edited by V.M. Oparin, explored the prerequisites, challenges, and implications of integrating innovative financial instruments and technologies into public finance management. The 2016 monograph "Financial Infrastructure of Ukraine: Status, Problems, and Development Prospects" provided the first comprehensive examination of the formation and evolution of a multifaceted financial infrastructure designed to address the resource and service needs of economic agents, including the state itself.

A landmark achievement in financial scholarship was the 2022 monograph "Information – Finance – Accounting", authored by A. Krysovaty, N. Ryazanova, and V. Fedosov under the general editorship of V. Fedosov. This publication stands as the first rigorous inquiry—both within Ukraine and internationally—into the theoretical and practical interconnections among finance, information (as a fundamental economic resource), and accounting (as an essential informational subsystem of financial and economic activities).

The formal consolidation of the public finance school was further reinforced by the publication in 2010 of the three-volume monograph "Financial Thought of Ukraine", edited by V.M. Fedosov. This extensive work systematically examined the intellectual heritage of Ukrainian financial science, delineating its foundational contributions to the development of the public finance school within the Department of Finance. The synthesis of the school’s research findings and theoretical advancements was further encapsulated in the 2018 monograph "Modern Ukrainian Financial Science: Theoretical Paradigm & Practical Concept of Public Finance", authored by V. Fedosov, A. Krysovaty, V. Oparin, and P. Yukhymenko, and published in the United States (Draft2Digital Publishing House, Oklahoma City). This international publication significantly contributed to the global dissemination and recognition of the school’s conceptual frameworks and empirical findings.

In the realm of education, the evolution of the public finance school can be delineated into three distinct phases.

The initial phase was marked by the publication in 1991 of the textbook "State Finance", edited by V.M. Fedosov, V.M. Sutormina, and S.Ya. Ogorodnyk. This textbook served as a foundational compendium, consolidating the core principles and theoretical underpinnings of the school.

The second phase, emerging in the mid-1990s, coincided with Ukraine’s transition to a market economy and necessitated the restructuring of academic curricula. During this period, a revised educational framework for the "Finance and Credit" specialization was introduced, incorporating newly developed courses such as "Tax System", "Tax Management", "Budget System", "Budget Management", "Local Finance", and "Public Debt Management". This phase also witnessed the publication of Ukraine’s first comprehensive textbooks on these subjects, including "Tax System of Ukraine" (1994) and "Budget Management" (2004), both edited by V.M. Fedosov.

The third phase, initiated in the early 2010s, was characterized by the integration of advanced research findings into the educational process. This resulted in the introduction of a series of innovative academic disciplines, including "Financial Thought of Ukraine", "Fiscal Policy", "Macroeconomic Financial Analysis", "Macroeconomic Financial Planning", "Macroeconomic Financial Risk Management", "State Financial Control", and "Financial Infrastructure and Its Innovative Development Trajectories". In the early 2020s, the course "Macroeconomics" was introduced, further aligning the curriculum with contemporary demands in public finance management.

The Public Finance School of the Department of Finance, named after Viktor Fedosov, is deeply rooted in historical traditions and academic rigor, facilitating the intergenerational transmission of knowledge and the continuous expansion of financial research. Through its systematic integration of theoretical advancements and empirical findings, the school remains at the forefront of public finance scholarship, contributing to the development of a cohesive and comprehensive conceptual framework for public financial management.