THEORETICAL AND IDEOLOGICAL FOUNDATIONS FOR THE ADAPTATION AND FUNCTIONING OF THE BUDGETARY SYSTEM UNDER CONDITIONS OF ARMED CONFLICTS

Abstract

This article examines the integration of traditional economic models of budgeting—namely, the Keynesian, neoclassical, and institutional approaches—with a contemporary analysis of ideological discourse amid armed conflicts. The central idea of the work is to determine the feasibility of adapting classic budgetary policy frameworks by incorporating state ideology, national values, and political priorities that assume heightened importance during crisis situations. The study employs a comprehensive interdisciplinary approach that combines insights from economic theory, political economy, institutional analysis, and crisis management. The author demonstrates that the Keynesian model, which emphasizes active fiscal policy to stimulate aggregate demand, encounters significant challenges due to uncertainty and rapid external shocks that complicate its application during wartime. In contrast, the neoclassical approach, which relies on market self-regulation and resource optimization, loses its relevance when market mechanisms are disrupted by extraordinary state needs. Meanwhile, the institutional approach, focusing on formal regulatory mechanisms, often overlooks the impact of informal norms and ideological factors that determine resource mobilization and political legitimacy in crisis conditions. A review of historical examples—from the budgetary policies of Nazi Germany to contemporary fiscal transformations in Russia and Iran—illustrates that state ideology and political priorities become the key drivers of budgetary decisions under conflict. The article underscores the necessity of synthesizing classical economic theories with methods of political economy analysis, the theory of public choice, and scenario analysis to develop an adaptive budgetary mechanism capable of flexibly responding to external shocks while ensuring efficient resource allocation. The proposed approach will enable the formulation of practical recommendations for the post-crisis restoration of Ukraine’s budgetary system, taking into account the imperatives of national security, social justice, and transparent public governance. The research has significant applied potential for constructing a resilient economic mechanism in times of armed conflict and for the subsequent post-war recovery.