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The aim of the study is to develop methodological approaches and practical methods for implementing financial monitoring of financial stability and digitalization in federal districts. Also, the object of the study is the regional budget included in the federal districts of the Russian Federation. In addition, the subject is a set of theoretical and methodological issues of financial monitoring of financial stability and digitalization of federal districts in the context of digital transformation of public administration.Methodology. A distinctive feature is the financial monitoring of the financial stability in federal districts, taking into account indicators including financial independence and the efficiency of public resources spending.Result: As a result of this study there are methods for monitoring of financial stability and digitalization of federal districts, ranking districts in order to evaluate digitalization processes for making effective management decisions related to formation of a single financial and economic space in Russia.Conclusion. The information infrastructure of the Ministry of Finance of the Russian Federation opens up wide opportunities for financial monitoring of financial stability and digitalization of federal districts based on an automated calculation of reliability indicators of monitoring objects and visualization of corresponding ratings. The results contribute to development of financial management, aimed at ensuring the financial stability of the territories, and taking into account the need for digitalization of their economy. Keywords: Financial monitoring Á Analysis of the budget system Á Digitalization of public finances Á Budget sustainability of regions Á Budget management JEL Code: C51 Á H61 Á O21

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