Methods for Local Budgets liquidity management and cash flow forecasting using AI

Abstract

The article examines the issue of insufficiently efficient forecasting mechanism of cash flow and liquidity status on the boiler accounts of local budgets, which led to the revision of liquidity management practices. In the context of financial decentralization, local financial authorities have faced numerous challenges, including the need to ensure sufficient cash balances in the accounts of local budgets to guarantee financing and payment of obligations with minimal associated costs. In addition, effective management of cash reserves and forecasting of the revenue base of local budgets is necessary. The authors emphasize the importance of applying modern forecasting methods, such as machine learning and neural networks, which allow faster and more accurate analysis of financial data and more accurate forecasts. special attention assigned processes previous processing and automation data, algorithm selection, training models and estimates productivity. The article also investigated the concept management liquidity developed by the Ministry of finance of Ukraine for 2020-2023, and its impact on improvement of management practices state finances. Thus, in the article is highlighted necessity implementation effective methods forecasting and management liquidity for security stability and efficiency financial systems at both the local and state levels.