Українська
Rusina, Y.
(2024).
Impact of a full-scale war on the budget system of Ukraine.
Journal of Strategic Economic Research,
25(2),
65-73.
https://doi.org/10.30857/2786-5398.2024.2.7
ISSN 2786-5398 e-ISSN 2786-5401
English
Article
Impact of a full-scale war on the budget system of Ukraine
Received 29.10.2023, Revised 27.02.2024, Accepted 18.04.2024
Abstract
It is established that Ukraine is in a difficult geopolitical situation, as the full-scale war has already caused serious losses to the country's financial stability and budgetary resources. It is proved that the war has led to the need for a significant increase in defence and security expenditures, including financing the army, purchasing weapons, maintaining military infrastructure and other costs associated with the conduct of hostilities. It has been established that war damages the country's economy and leads to a decrease in tax revenues. War forces the government to borrow and increase public debt to finance defence and military operations, which can have serious consequences in the future, as rising public debt can lead to higher interest payments and restrictions on funding other programmes. It has been proven that the war has a serious, multifaceted impact on the budget system of Ukraine, changing priorities in the use of resources, forcing the search for new sources of funding and leading to a significant increase in public debt. To ensure stability and economic development of the country, it is necessary to effectively manage budgetary resources and look for ways to minimise the negative impact of the war on the economy. It is proved that a full-scale war has led to significant economic losses due to the destruction of infrastructure, production stoppages, business destruction, etc., which makes it impossible for the financial basis of the budget to function properly. The state's defence measures require significant expenditures on defence, military equipment, weapons, salaries for military personnel and other expenses, which significantly increase budget expenditures. It is established that the prospects for further research remain extremely relevant, since the war will have a longterm impact on the budget system of Ukraine and even after its end, Ukraine will need time to restore the economy and the budget system. The main ways to overcome the crisis of Ukraine's budgetary system in the context of war are as follows: reforming the budget system; increasing the efficiency of budget expenditures; increasing budget revenues; and cooperation with international partners
Keywords:
full-scale war; budgetary system of Ukraine; public expenditures; defence; security; infrastructure; economy; tax revenues; public debt; reforms; international cooperation
- 193 Views
- Read article
References
[1] Bak, N., & Kharovska, A. (2023). War as a factor in the formation of tax revenues of the budget of Ukraine. Bulletin of the Chernivtsi Institute of Trade and Economics. Economic Sciences, 1, 21-37. doi: 10.34025/2310-8185-2023-1.89.02.
[2] Bilorus, O.H., Balakin, R.L., Ukhnal, N.M., Bartosh, S.V., & Ivashchenko, O.B. (2023). Financing the deficit of the State Budget of Ukraine under martial law. Scientific Works of the Research Institute of Finance, 3, 5-36.
[3] Bui, T.H., & Primierova, O.K. (2023). Budget system of Ukraine: The impact of the war and the challenges of post-war reconstruction. Scientific Notes of NaUKMA. Economic Sciences, 8(1), 17-24. doi: 10.18523/2519-4739.2023.8.1.17-24.
[4] Vozniak, H.V., & Koval, V.M. (2022). Local budget expenditures through the prism of the war in Ukraine. Socio-economic Problems of the Modern Period of Ukraine, 2, 9-14. doi: 10.36818/2071-4653-2022-2-2.
[5] Horyn, V.P., Kvasnytsia, O.V., & Romankiv, A.A. (2023). Tendencies of financing the budget deficit and priorities of the debt policy of Ukraine in the conditions of war. Efektyvna Ekonomika, 9.
[6] Dzhyhora, O.M. (2022). Features of ensuring the budget process and budgetary security of Ukraine under martial law. Economic Bulletin of Dnipro Polytechnic, 2, 136-147. doi: 10.33271/ebdut/78.134.
[7] Zakhidna, O.R., & Bundz, N.B. (2022). Analysis of the revenue part of local budgets of Ukraine under martial law. Young Scientist, 12, 84-91. doi: 10.32839/2304-5809/2022-12-112-16.
[8] Korsun, I.M., Zinchenko, M.M., Makhno, S.V., & Myronenko, D.Yu. (2023). Paradigm of financing the expenditures of the State Budget of Ukraine in the conditions of wartime and post-war socially oriented market economy. Academic Review, 2, 103-112. doi: 10.32342/2074-5354-2023-2-59-7.
[9] Official website of Ministry of Economy of Ukraine. (2023). Retrieved from https://www.me.gov.ua/?lang=uk-UA.
[10] Official website of Ministry of Finance of Ukraine. (2023). Retrieved from https://index.minfin.com.ua/.
[11] Pavliuk, K.V., & Bartosh, S.V. (2022). Budget decentralisation in Ukraine under martial law. Scientific Works of the Research Institute of Fiscal Studies, 2, 79-99.
[12] Panukhnyk, O., Fedotova, Ya., & Holych, N. (2022). State Budget of Ukraine–2023: Features of regulation of financial and economic processes in a full-scale war. Socio-economic Problems and the State, 2, 63-71.
[13] Official website of Parlament.UA. (2023). Retrieved from https://parlament.ua/.
[14] Resolution of the Board of the National Bank of Ukraine No. 18 "On the Operation of the Banking System during the Period of Martial Law". (2022, February).
[15] Radionov, Yu.D. (2023). Priorities of budget policy in the conditions of martial law and post-war reconstruction of Ukraine. Finance of Ukraine, 9, 24-47.
[16] Ratushniak, S.O., Lutsyk, Yu.O., & Cherevatyi, T.V. (2023). Analysis of changes in approaches to the formation and distribution of budget expenditures for the needs of the Ministry of Defence of Ukraine during martial law. Modern Economics, 41, 93-104. doi: 10.31521/modecon.V41(2023)-14
[17] Tarasenko, I.O., Olefirenko, K.S., Polozova, T.V., & Murzabulatova, O.V. (2023). Strategic management of sustainable development of industrial enterprises in the conditions of post-war reconstruction of Ukraine. Ekonomika. Finance. Law, 7, 73-77. doi: 10.37634/efp.2023.7.15.
[18] Chubka, O.M. (2023). Sources of financing of the state budget in the conditions of a full-scale war in Ukraine. Eastern Europe: Economics, Business and Management, 2, 85-90.
[19] Chuhunov, I., Pasichnyi, M., & Nikitishyn, A. (2022). Revenues of the State Budget of Ukraine under martial law. Scientia Fructuosa, 5, 124-137. doi: 10.31617/1.2022(145)08.
[20] Rusina, Yu. (2023). The assessment and analysis of Ukraine’s budget for 2023 in conditions of full-scale war. Formation of Market Relations in Ukraine, 2, 16-23.