Ratushnyak Serhiy, аdjunct of the National University of Defense of Ukraine, Kiyv

ORCID ID: 0000-0002-9008-1064
e-mail: ratushniak-fin@i.ua

Lutsyk Yuliia, Candidate of Economics sciences, associate professor, head of the Department of Economics and Financial Support of the Institute of Logistics and Support of Troops (Forces) of the National Defense University of Ukraine, Ukraine

ORCID ID: 0000-0002-1486-2336
e-mail: Julia.Lutsik@gmail.com

Cherevatyi Taras, Candidate of Military Sciences, Associate Professor of the Department of Economics and Financial Support of the Institute of Logistics and Support of Troops (Forces) of the National Defense University of Ukraine

ORCID ID: 0000-0003-0866-295X
e-mail: cherevatiy_taras@ukr.net

Analysis of Changes in Approaches to the Formation and Distribution of Budget Expenditures for the Needs of the Ministry of Defense of Ukraine During Martial Law

Abstract. Introduction. The article analyzes changes in approaches to formation and distribution of budget expenditures for the needs of the Armed Forces of Ukraine during the martial law and in the conditions of the Russian-Ukrainian war.

It is shown that the war conditions required an immediate and significant increase in expenditures for the needs of the Armed Forces of Ukraine and, moreover, the search for additional sources of filling the state budget, i.e. changes in the state budgetary policy. The changes in the priorities of the relevant budget programs were analyzed in detail, and the problems of the military-political leadership in the implementation of budget programs and management decisions were identified.

It has been proved that the gained practical experience in changing approaches to providing the needs of the Armed Forces with financial resources during the legal regime of martial law will be useful and will contribute to the improvement of the organization of formation and distribution of defense expenditures of Ukraine in conditions of limited financial resources and the adoption of reasonable management decisions.

Purpose. The changes in the budgetary policy of the state; rational redistribution of limited financial resources; search for new sources of filling the state budget in the conditions of repelling armed aggression of the Russian Federation (further Russian Federation) have been analyzed.

Results. The introduction of martial law in Ukraine on February 24, 2022, fundamentally changed the approach to ensuring the defense needs of our country and forced the state leadership to prioritize the budget and increase spending for the needs of the Ministry of Defense of Ukraine by eight times.

Conclusions. It should also be noted that the continuation of intensive hostilities will not reduce the expenditures for the needs of the Ministry of Defense of Ukraine. In particular, the planned expenditures of the budget of the Ministry of Defense of Ukraine for the beginning of 2023 were lower by 23% in comparison with the actual expenditures of 2022. However, defense priorities force the government to revise them in the direction of real growth. Thus, in March-June of the current year the planned expenditures for the needs of the Ministry of Defense of Ukraine were increased by UAH 374.5 billion or by 43.6% of the originally planned expenditures for 2023. If additional financial resources are received, the budget for the needs of the Ministry of Defense of Ukraine can be again revised and increased (by about 19.6%). Thus, it can be concluded that the process of allocating budget funds for defense needs has acquired important features: short-term, low predictability and has become more dynamic.

Keywords: state budget; reserve fund; budget of the Ministry of Defense of Ukraine; budget program; expenditures; legal regime of martial law in Ukraine.

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