A NEW ARCHITECTURE OF STATE FINANCIAL CONTROL IN UZBEKISTAN: PROSPECTS FOR CREATION

SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 9 SEPTEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 183 A NEW ARCHITECTURE OF STATE FINANCIAL CONTROL IN UZBEKISTAN: PROSPECTS FOR CREATION A.A. Jabborov Tashkent International University independent researcher (PhD) https://doi.org/10.5281/zenodo.17290742 Abstract.. This article discusses the impact of the directions of reforms in public finance management in our country on the system of state financial control. The article analyzes the work on reforming the budget process based on international experience in directions and assesses its impact on the state financial control system. Keywords: state financial control, budget planning, budget expenditures, external audit, internal audit, anti-corruption, budget accounting, internal control, ratings and indices, international organizations. Introduction Today, state finance issues are more important than ever in the innovative economic architecture of our country, through which the creation of a new financial system is ensured. In this regard, all stages of the process of disposing of the state budget, which is an integral part of state finance, are important, and in their composition, state financial control plays a special role as a direct participant and controller in creating a new financial architecture. The participation of the state financial control system in creating a new financial architecture in the state budget system means developing proposals for improving them by identifying risks and shortcomings associated with the existing system, and the control function involves the use of the new systems being created and evaluating their effectiveness. State financial control is a constant participant in all stages of the budget process, and its improvement is directly related to and in harmony with changes in the state budget system. In this sense, improving the architecture of state financial control implies changes in the state budget and is carried out in an integrated manner. Today International experience in the architecture of state financial control of Uzbekistanand data is given great attention to development based on and recommendations are being made by a number of international financial institutions such as the World Bank, the International Monetary Fund, and the Asian Development Bank. The foreign experiences that can be used in the development of state financial control can be conditionally divided into directions based on the recommendations provided by them and the results of the assessment work carried out. Literature Review The modern concept of SFC has evolved from a narrow "inspectorate" model to a comprehensive system of assurance based on the "Three Lines of Defense" model, widely promoted by the Institute of Internal Auditors (IIA) and adapted for the public sector. According to Professor of University of Maryland, Allen Schick- “The shift in State Financial Control from traditional compliance auditing to a forward-looking, performance- SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 9 SEPTEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 184 oriented system is fundamental for modern governance. This evolution is critical for ensuring that public funds achieve intended outcomes rather than merely adhering to legal stipulations”. Professor of University of Chicago James L. Chan emphasizes that The entire edifice of State Financial Control rests on the foundation of a robust and transparent accounting system. Implementing accrual-based accounting in line with International Public Sector Accounting Standards (IPSAS) is not a technicality; it is a prerequisite for meaningful fiscal transparency and control. Leuven university’s professor Geert Bouckaert says The efficacy of a State Financial Control system is directly correlated with the level of public trust. A transparent and effective control mechanism demonstrates governmental accountability, which in turn strengthens civic engagement and voluntary tax compliance. According to former employe of World Bank Institute professor Anwar Shah “In decentralized governance systems, a centralized, command-and-control model is counterproductive. The central government's role should be to establish standards and build capacity, while empowering sub-national entities with control responsibilities and holding them accountable to their constituents”. Professor of Paul New York University Paul C. Light emphasizes that The most sophisticated financial control frameworks are rendered ineffective without institutional capacity. This necessitates significant investment in a professional bureaucracy, including competitive compensation and legal protections against political interference, to enforce accountability. In our opinion, the first direction is undoubtedly building a budget system, and the main focus is on budgeting, .i.e., budget planning. International experiences anddata that can be used in this area include Sustainable Development Goals (SDG), Public Expenditure and Financial Accountability (PEFA) results, Fiscal Rules (Fiscal Rules (FR)), Public Expenditure Review (PER), Performance-Based Budgeting (PBB), Medium Term Budgetary Framework (MTBF), Public Investment Management Assessment (PIMA) and Fiscal Transparency Code can be included. Through these foreign experiences, work is carried out to reform the budget system based on the results of international assessments, transition to the practice of medium-term budget planning, apply program-targeted budgeting, assess the state investment system, develop fiscal rules and strategies, increase fiscal transparency, and link the budget to sustainable development goals. Results and Discussion As the next major direction, we can mention the internal control system, which is important for the executive branch. International experiences and data that can be used in this direction include "Internal Control – Integrated Framework" developed by The Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the "Three Lines" models of the International Institute of Internal Auditors, and the standard of the International Organization of Supreme Audit Institutions (INTOSAI) on the organization of internal control in the public sector (ISSAI 9100), as well as the Federal Internal Control Standards in the Federal Government developed by the United States Government Accountability Office (GAO) (Standards for Internal Control in the Federal Government). The above-mentioned models and standards describe the institutional and functional aspects of organizing internal control in the public sector, including ministries and departments. In particular, the "Internal Control – Integrated Framework" model consists of 5 components and 17 principles, which presents the conceptual foundations and SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 9 SEPTEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 185 structure of the internal control system. This model consists of control environment, risk assessment, control processes, information and communication, and monitoring components. The introduction of international internal control standards into the system of ministries and departments of our country ensures the reduction of financial risks, accountability, responsibility and accountability. In our opinion, the next main direction that directly affects the architecture of public financial control is audit, which is divided into internal and external types. International internal audit standards are among the international experiences and data that can be used in the field of internal audit (GIAS), Public Expenditure Management Peer Assisted Learning (PEMPAL) experiences, Public Expenditure and Financial Accountability (PEFA) results, International Auditing Standards (International Standard on Auditing (ISA)), Public Internal Financial Control (PIFC) experiences, Internal Audit Capability Model (IA-CM) for the Public Sector) can be included. As a result of the organization of internal audit through these international experiences, it is possible to assess the effectiveness of activities and internal control, implement international standards, introduce a three-tier protection system, an internal audit capacity model and to organize the use of state internal financial control system experiences. External audit standards available in international practice are among the international experiences and data that can be used in the field of external audit, StatePublic Expenditure Management Peer Assisted Learning (PEMPAL), Sustainable Development Goals (SDG), Public Expenditure and Financial Accountability (PEFA) results, International Auditing Standards (International Standard on Auditing (ISA)) can be used. Through the development of external audit based on the above international experience, it is possible to achieve sustainable development goals, increase the effectiveness and efficiency of budget funds, and reduce financial risks by assessing the effectiveness of the internal control system and introducing international standards. Another area that directly affects the architecture of the state financial control system is accounting and budget accounting. AccountingInternational Financial Reporting Standards, which can be used in the direction of international experience (International Financial Reporting Standard (IFRS)) and International Accounting Standards (International Accounting Standards (IAS)) can be mentioned. The peculiarity of their implementation is that they simultaneously affect the revenue and expenditure parts of the budget. BThe development of accounting based on international standards serves as a source of information for state financial control, especially for state enterprises and tax payments. Budget accountingInternational experiences that can be used in the direction include International Public Sector Accounting Standards (International Public Sector Accounting Standards (IPSAS)) and Government Finance Statistics (Government Finance Statistics (GFS)) should be mentioned. Through their implementation, it is possible to increase the coverage and quality of consolidated budget reports as a source of data for state financial control and to implement international standards for improving the statistics of state financial activities. In our opinion, anti-corruption activities, which are relatively new in public finance management, also affect state financial controlof course. International experiences and data that can be used as a direction include the Anti-bribery management systems standard (Anti-bribery management systems (ISO 37001)), Corruption Perception Index (Corruption Perception Index (CPI)), Korruption Control Indicator(Control of Corruption) can be listed. The use of manuals, ratings and indicator methodologies of international organizations in the fight against corruption in the state financial control system is of great importance. SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 9 SEPTEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 186 Also, in our opinion, another area that can indirectly affect the architecture of the state financial control system is international ratings and indices, which include the Open Budget Index (Open Budget Index (OBI)), Control of Corruption Index (Control of Corruption), Economic Freedom Index (Economic Freedom Index (EFI)), E-Government Development Index (EGovernment Development Index (EGDI)), Human Development Index (Human Development Index (HDI)), Global Innovation Index (Global Innovation Index (GII)), Worldwide Governance Indicators (Worldwide Governance Indicators (WGI)) can be included. In our opinion, improving the parts related to state financial control in the methodology of these international ratings, indices and indicators for our country, as well as assisting in their calculation, evaluation and monitoring, will change the architecture of state financial control in the future and increase its effectiveness. Conclusion The above-mentioned directions are the directions that will definitely affect the architecture of state financial control in our country in the next decade, and through the work carried out on their basis, the state financial control system will be raised to a completely new level in terms of functional, organizational, legal and quality. It can be said that the following main issues should be paid attention to in the formation of a new state financial control architecture: 1. In connection with the transition from "targeted spending" of funds in the budget system to "ensuring their effectiveness", the assessment of the effectiveness and efficiency of funds allocated from the budget becomes the main task of the new state financial control system; 2. Reducing financial risks by improving internal control in ministries and departments is defined as a permanent task; 3. The state financial control architecture will have external and internal audit structures. Through the development of audit structures, the transition from compliance control to performance and quality audit will be carried out; 4. The data provision of state financial control will be drastically improved by updating accounting and budget accounting based on international standards, thereby achieving data completeness, reliability, comparability, understandability (including to international auditing organizations), and validity. At the same time, the quality of financial control work will be improved by achieving the emergence of international competitors in the state financial control system. 5. International experience is widely used to combat corruption in the state financial control system. Each control structure or its existing systems (e.g., ministries and agencies) must have a certificate confirming the anti-corruption management. 6. Assistance is provided in improving the parts of international rating, index, and indicator methodologies related to state financial control and in calculating, evaluating, and monitoring them. Taking into account the above analyses and data, we propose to carry out the following works to improve the architecture of state financial control: - It is necessary to implement the transformation of the state financial control system based on the reforms being implemented in public finance management based on international best practices. This transformation involves the development and use of new mechanisms and methods of financial control of international experiences and systems implemented in practice. - In the architecture of state financial control, taking into account the formation of new institutional structures (such as internal and external audit and anti-corruption structures) existing SCIENCE AND INNOVATION INTERNATIONAL SCIENTIFIC JOURNAL VOLUME 4 ISSUE 9 SEPTEMBER 2025 ISSN: 2181-3337 | SCIENTISTS.UZ 187 in international experience, it is necessary to clarify their role and distribution of tasks in the state financial control system, limit repetitive tasks, and coordinate their activities with state financial control bodies. In our opinion, this can be done through special legislation and mutual exchange of information. - In our opinion, in the process of implementing new systems, it is necessary to constantly and consistently improve the qualifications of employees of the state financial control system. In this case, first of all, it is possible to improve the quality and effectiveness of reforms by widely promoting and explaining the content and essence of new systems to employees of state financial control structures, thereby ensuring that they and the performers "speak the same language" in the future. - In our opinion, the appropriateness of assessing international experiences expected or planned to be newly implemented in the public finance management system by state financial control structures and their implementationor the practice of consulting on risks should be established. Through this, on the one hand, by informing the state financial control structures about these reforms, their readiness will be increased, and on the other hand, by taking their opinions, it will be possible to identify and eliminate risks that may affect the effective implementation of reforms early. REFERENCES 1. M. Robinson, D. Last. "A Basic Model of Performance-Based Budgeting." 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