Legal regulation of the budget deficit of Ukraine under martial law

Abstract

The article examines aspects of legal regulation of Ukraine's budget deficit in the context of a full-scale war. In particular, the author defines the concept of "budget deficit" with due regard to the official definition and scholars, and notes that there is still no consensus among economists and lawyers on this term. The author emphasizes that, despite its negativity, the budget deficit is not always a critical phenomenon; in the world practice, highly developed countries also have budget deficits. The most common causes of budget deficits are classified. The interdependence between the budget deficit and public debt is analyzed.

The budget deficit as a percentage of GDP is analyzed. The emphasis is placed on the ratio of the state budget execution balance in the parallel of January 2023 and 2022. Taking into account the research of scientists, the main opportunities for reducing the budget deficit are highlighted. The sources of budget financing in accordance with the Budget Code of Ukraine are considered, which include: funds from internal and external borrowing; funds from the privatization of state property, return of budget funds from deposits, etc. Special attention is paid to the state budget revenues from the issue of military bonds and foreign investments during the period of martial law. The importance of legal regulation of the issue of the possibility of reasonable sale of state and municipal property in order to improve the attraction of foreign investment in the structure of the Ukrainian economy is emphasized.

The author emphasizes that today the budget deficit is a rather difficult part of financial and legal policy for our country, in particular due to a full-scale war, since significant expenditures are aimed at achieving victory over the aggressor.

The author argues that in order to improve the state's position with regard to debt obligations, it is necessary to improve the legislative framework that will clearly regulate these issues. Strengthening the legal regulation of public debt in the area of optimizing the ratio of the volume, structure and sources of its repayment.

We are convinced of the importance of continuing research in the field of legal regulation of the budget deficit.