FEATURES OF THE LEGAL REGULATION OF BUDGET FORMATION FOR THE SECURITY AND DEFENSE SECTOR UNDER MARTIAL LAW
DOI:
https://doi.org/10.33244/2617-4154-1(18)-2025-32-42Keywords:
defense sector financing, budget process, martial law, legal regulation, bureaucracy, expenditure transparency, corruption risks, digitalization, defense procurement, financial stabilityAbstract
During the period of martial law, effective financing of the defense sector plays a key role in ensuring national security and state stability. However, the current system of legal regulation of the budget process faces numerous challenges, such as excessive bureaucratization, insufficient efficiency in fund allocation, and high corruption risks. Existing legal norms, primarily designed for peacetime, prove to be ineffective in wartime conditions, complicating the provision of necessary resources to the Armed Forces of Ukraine.
The aim of this study is to examine the specifics of legal regulation of the budget process in the security and defense sector during martial law, assess the effectiveness of the current regulatory framework, and develop proposals for its improvement to ensure financial stability and prompt response to emerging challenges.
The study employed the following methods: analysis and synthesis of legal acts regulating the budget process in the defense sector; comparative analysis of international experience in defense financing; and a systematic approach to identifying key problems and developing recommendations for optimizing legal regulation.
The analysis revealed that the existing system of defense sector financing has several critical shortcomings that reduce its effectiveness. In particular, complex bureaucratic procedures slow down the allocation of funds, negatively affecting the supply of material and technical resources to the Armed Forces of Ukraine. The high level of expenditure secrecy limits public oversight, creating conditions for potential abuses. At the same time, international experience indicates that digitalization of the budget process, the introduction of mechanisms for the rapid redistribution of funds, and the strengthening of anti-corruption measures can significantly improve the efficiency of budget resource utilization.
To enhance the effectiveness of the budget process in the defense sector, it is necessary to introduce mechanisms for the rapid redistribution of funds by establishing special rapid response funds, which will allow for the immediate allocation of financial resources to the most urgent defense needs. Additionally, expanding digitalization and automation of the budget process will facilitate the faster allocation of financial resources and increase oversight of their use. Ensuring transparency in defense procurement through the introduction of a differentiated approach to expenditure secrecy is also crucial, as it will minimize corruption risks.
Overall, the modernization of the budget process, taking into account speed, flexibility, and transparency, will significantly improve the efficiency of defense sector financing, which is a crucial factor in strengthening Ukraine's defense capability.