Legal Principles of the Functioning of the Budget System of Ukraine in the Realities of Military Status

Abstract

In the article, the authors justify a set of measures of state authorities aimed at ensuring the proper implementation of budgets in the conditions of prompt resolution of problems in the realities of military status. The importance of emission financing of the budget, the need for donor financing of the budget deficit was emphasized. The normative legal acts that significantly change the previously established state finance management procedure are analyzed, in particular, the grounds for reducing transfers to local budgets and the corresponding redirection of a part of state revenues to finance the defense sector. Attention is focused on changes to the Budget Code of Ukraine, which simplify state procurement of goods for military purposes and change approaches to the application of measures of influence for violations of budget legislation.

An analysis of the draft Law of Ukraine «On the State Budget of Ukraine for 2023» was carried out, which provides for a number of changes and innovations, including in the Budget Code of Ukraine. It was concluded that the specified changes primarily concern financial resources to ensure the defense capability of the country during a full-scale invasion of the russian federation on the territory of Ukraine and the implementation of social programs. It is determined that the key reasons for the excess of the expenditure part of the 2023 budget over the revenue part are the prospects of a reduction in macro-financial assistance from partner states and a significant decrease in income from dividends of state-owned companies.

It is justified as a threat to the stability of the financial system and a real reduction in tax revenues in the next year. It is noted that the 2023 budget will be adopted according to a shortened procedure, which may make it difficult to control its implementation. Reducing the expenditure part of the budget, increasing the scale of international aid, etc., were called important for the stabilization of the budget system.

The conclusion includes recommendations for improving the state of the budget in wartime conditions and states that Ukraine's economy will face major global challenges in the future as well.