Adaptation of the state budget of Ukraine to the conditions of war

Abstract

The war that has been going on in Ukraine since 2014 has created unprecedented challenges for the country's public finances. Changes in the political situation and new challenges require changes in the approach to the redistribution of funds from budgets of all levels to reduce the negative impact on economic and social life in the country. Effective budget management in times of war has become one of the key tasks of the government, as ensuring the state's defense capability and maintaining economic stability require significant financial resources. The forced increase in the State Budget expenditures on defense simulated a revision of the priorities for financing such items as education, healthcare, social security and financing of general government functions, including public debt service. The article states that in times of war, our state is forced to cover the lack of funding for the war at the expense of other items of expenditure; the forced increase in the State Budget expenditures on defense simulates a revision of the priorities for funding such items as education, healthcare, social security and financing of general government functions, including public debt service. Separate mention is made of the state budget expenditures for creating conditions for the formation of the economic component of Ukrainian society, enhancing the competitive economy, creating new enterprises and conditions for the development of small and medium-sized businesses. The State budget, as a central element of the economic policy of any country, involves the application of a systematic approach to the creation of adaptive management technologies. The article considers the peculiarities of budgeting in developed countries, in particular, in terms of defense capability. Special attention in the article is focused on the substantiation of the priority vectors of the State Budget formation during the war in Ukraine.