Finance: Theory and Practice | 2026
Authors: Komarnitskaya A.N.; Sokolov I.A.; Solyannikova S.P.
DOI: 10.26794/2587-5671-2026-30-2-6-19
Journal: Finance: Theory and Practice
Year: 2026
Publisher: Financial University under The Government of Russian Federation
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 0
In the context of intensifying deglobalization processes in the world, the task of strengthening the financial sovereignty of the state comes to the fore. A key factor determining its level is budgetary sustainability, reflecting the capacity of public finances to withstand external shocks and maintain functionality over the long term. The purpose of this study is to examine the role of the budgetary system in ensuring a country’s financial sovereignty through the analysis of its vulnerabilities and resilience factors. The paper proposes an original approach to interpreting financial sovereignty as the ability of the state to shape tax, budgetary and debt policies in accordance with national interests while minimizing dependence on external constraints. The methodological framework includes a structural analysis of revenues, expenditures, and public debt, as well as the use of proxy indicators to assess the degree of autonomy of public finances. Using developed and developing G20 countries as examples, the study provides a comparative analysis of their tax, budgetary, and debt aspects of financial sovereignty, identifying channels of vulnerability and sources of budgetary sustainability. The results of the integral assessment show that developed countries demonstrate higher levels of financial sovereignty due to a diversified tax base, greater expenditure flexibility and low dependence on external debt, however their potential for further strengthening is limited. Developing countries, despite significant risks, retain opportunities to enhance financial sovereignty through revenue diversification, expanded fiscal space and the development of domestic capital markets. The findings confirm that a combination of short-term budgetary flexibility and long-term balance is a necessary condition for strengthening financial sovereignty. © Komarnitskaya А.N., Sokolov I.А., Solyannikova S.P., 2026.
budget vulnerability; budgetary policy; budgetary sustainability; debt policy; financial sovereignty; public finance; resilience to external shocks; tax policy