PECULIARITIES OF THE STATE BUDGET OF UKRAINE IN THE CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The study analyzes the peculiarities of the State Budget of Ukraine in the context of economic instability in the period from 2019 to 2023. The paper examines the dynamics of revenues, expenditures and budget deficit in the context of global and domestic crises, such as the COVID-19 pandemic and a full-scale war. Considerable attention is paid to the impact of these crises on public finances and the role of external factors in maintaining budgetary sustainability. The changes in the structure of revenues in terms of components and expenditures by functional and economic classifications are analyzed, which allowed to identify the main trends in the budget policy of Ukraine during the crisis periods. It is shown that the main driver of expenditure growth was the military operations and the need for large-scale social protection of the population. Particular attention is paid to the sharp increase in defense and social protection expenditures, which have become a priority due to the military operations. At the same time, the share of spending on education, environmental protection, and capital investments has significantly decreased, indicating a temporary decrease in funding for peaceful areas. The study also emphasizes the growth of revenues, especially from international aid, which has become a key source of funding in wartime. An important aspect is the analysis of the budget deficit and its connection with the attraction of external financial resources. The dynamics of the state budget deficit, which rose to record levels in 2022-2023, is considered separately, due to significant spending on defense and social support. The role of external financing and international support in covering Ukraine's budgetary needs is highlighted. It is concluded that the budget policy in the crisis is focused on short-term solutions aimed at stabilizing the economy and meeting defense needs. The study's recommendations emphasize the need to optimize expenditures, improve the efficiency of tax administration, and increase capital investments.