Digital Transformation Shapes a More Transparent and Accountable Public Financial System

Abstract

Digital transformation in government has become a fundamental pillar in establishing efficient, transparent, and accountable public governance. The adoption of technologies such as big data, the Internet of Things, blockchain, and artificial intelligence has driven significant changes in national financial management systems. Through digitalization, governments are able to enhance budget management efficiency, accelerate reporting processes, and strengthen public oversight of fund utilization. This study employs a narrative study approach to examine the relationship between digital transformation, financial transparency, and the reinforcement of good governance principles. The findings indicate that the integration of digital technologies improves fiscal accountability and promotes public information openness, yet persistent challenges remain, including data security risks, disparities in digital literacy, and organizational resistance to change. With adaptive digital governance strategies and strong ethical frameworks for data management, governments can establish financial systems that are more transparent, efficient, and trustworthy in the era of artificial intelligence. The study highlights that successful digital transformation requires not only technological innovation but also institutional readiness, regulatory flexibility, and a commitment to fostering an inclusive governance ecosystem.