MANAGEMENT OF PUBLIC FINANCES AND CONTROL OF THEIR USE DURING THE PERIOD OF MARITAL STATE

Abstract

The article examines the processes of public finance management and control over their use during the period of martial law. It is emphasized that the management of public finances under martial law is fundamentally different from normal peacetime procedures. Changes in the legislative framework of wartime Ukraine in order to effectively respond to changes in the distribution and redistribution of state finances are highlighted. An assessment of the state of revenues and expenditures from the general fund of the State Budget after the introduction of martial law in Ukraine was provided and it was found that the largest percentage is occupied by defense expenditures. A comparative analysis of the main financial indicators of the public sector, recorded before the war, with the indicators during the war was carried out. It has been proven that such drastic changes were a direct consequence of military actions on the territory of Ukraine, which led to a reduction in production, a decrease in tax revenues at all levels of the budget, and an increase in defense expenditures. It has been established that the main direction of financial support in the budgetary sphere today is external borrowing. The volume of aid provided to Ukraine by international partners since the beginning of the war has been analyzed. The need and potential of obtaining financial resources from abroad in the future, as well as the need to maintain a positive debt image of the Ukrainian state in the international arena, are taken into account. The main areas of further financing of budget expenditures in the conditions of martial law are highlighted. It is argued that the attention of state authorities and local communities should be focused on finding ways to maximize budget sufficiency at all levels. The author recommends that local authorities, in accordance with their powers and capabilities, stimulate small and medium-sized businesses to resume operations and pay taxes, thereby reviving the economic and financial potential of local communities. It is also noted that one of the priority issues of public finance management is the reduction of future debt service costs by increasing Ukraine’s credit rating and improving access to cheap loans. Areas that need to be paid attention to in the conditions of martial law for further financing of budget expenditures are proposed.