THE FOUNDATIONS OF DIGITAL TRANSFORMATION OF THE PUBLIC ADMINISTRATION SYSTEM Tatul MKRTCHYAN Ph.D., Doctor of Science, Professor, ASEU Narek MELKUMYAN Armenian State University of Economics Ph.D. student of the Chair of "Management" Key words: digital transformation, public administration, e-governance, process automation, open data, cloud technologies Introduction. One of the primary trends in the development of modern society is the manifestations of digitization in all spheres. Information technologies are an integral part of the processes taking place in the country, continuously affecting various socio- economic systems. Digitization processes play a vital role in the country's economic development and in ensuring its security. As a result, today, in the global economy, the trends in the formation of the digital economy and its rapid development are highlighted, characterized by comprehensive implementation and application of new information technologies in all spheres of economic life. Public administration could not be left out of all this, where digital transformation is also one of the critical issues, the main goal of which is to simplify the processes taking place in the public sector and increase accessi- bility. Moreover, digital transformation affects all areas of public administration, inclu- ding the development and delivery of digital public services, process design, and policy development. The digital transformation of public services and public administration can create opportunities to modernize traditional governance models, making them more open and transparent. Undoubtedly, the digitization of public administration provides countries with opportunities to find more effective ways of governance by promoting co- operation between civil society and representatives of public administration bodies to ensure the inclusiveness of digitization. Of course, this process is quite challenging to implement in practice, considering the different degrees of development of information technologies in countries and the various manifestations of their "increase" in socio- economic life. In this context, it is possible to study and understand the experience applied in the field of digital transformation in different countries, pointing out their advantages and features. Thus, the need for digital change in the state administration system and the experience of its localization in individual countries is discussed. Methodology. The theoretical, informational and methodological basis for the ar- ticle are the works of Armenian and foreign economists, classical and modern economic theories about digital transformation, public administration and role of digital transfor- mation for improving public administration systems. In this article the author used quantitative and qualitative research methodology. With quantitative methods author did