Minimizing the risks of the regional budget process based on distributed ledger technology

Abstract

In the context of the digital transformation of the economy, the existing mechanisms for monitoring the execution of regional budgets are characterized by insufficient efficiency and transparency, which creates a gap in the tools for preventive financial risk management. The purpose of the article is to develop a conceptual approach to minimizing the risks of the budget process of regional economic systems based on the introduction of distributed ledger technology (blockchain). The object of the study is the public finance management system at the regional level; The paper uses methods of system analysis, risk classification, and financial flow modeling. The authors identified key vulnerabilities in regional budgeting that can be neutralized through digital tools, and proposed a mechanism for using smart contracts for automatic treasury support of subsidies and transfers. The results of the study prove that the integration of the financial blockchain makes it possible to move from an after-the-fact audit to a real-time mode, ensuring the immutability of data and the targeted nature of expenses. The practical application of the proposed solutions contributes to strengthening the economic security of the region, reducing the transaction costs of the public sector and minimizing corruption-causing factors, which opens up prospects for further building transparent digital ecosystems of regional governance.

To cite: Zakirov D.I. Minimizing the risks of the regional budget process based on distributed ledger technology. Research in Economic and Financial Problems. 2026;1:1. https://doi.org/10.31279/2782-6414-2026-1-1