IMPACT OF A FULL-SCALE WAR ON THE BUDGET SYSTEM OF UKRAINE

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 long-term 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.