The state budget of Ukraine: Diagnostics in the context of martial law

Abstract

At the current stage of development of a market economy, the efficiency of the state depends on the quality of budgeting and execution, as it is the main instrument for mobilising and spending public resources. The purpose of this study was to diagnose the revenues and expenditures of the State Budget of Ukraine under martial law, to identify the main problems that impede effective budget formation and execution, and to provide recommendations on how to eliminate them. The study used empirical, theoretical, and statistical research methods, namely description and comparison; synthesis, analysis, and generalisation. The paper examined the essence of the state budget according to the opinions of foreign and Ukrainian researchers. Based on the statistical data, the study described the current state of the state budget and analysed the dynamics of budget revenues and expenditures in 2018-2022. The structure of tax and non-tax revenues to the state budget was investigated. The structure of the state budget expenditures was analysed in terms of economic and functional classification. The budget deficit was analysed. The study highlighted the main problems related to the preparation and execution of the state budget, namely: military operations in the country leading to capital outflows; a decrease in the growth rate of the gross domestic product and a decline in production; insufficient filling of the reserve fund; an increase in tax rates leading to tax evasion by business entities; instability of the national currency; lack of an effective strategy for budget preparation and execution; imperfect control over the implementation of budget programmes. The paper offers recommendations on how to overcome these problems and promote optimisation of the revenue and expenditure sides of the state budget. The results of the study are of practical importance, since it is based on the analysis of the state budget indicators that the state of the budget is determined and ways to balance the revenues and expenditures of the State Budget of Ukraine are identified

Keywords

• revenues and expenditures
• financial resources
• state deficit
• balancing the state budget
• socio-economic development