State Budget Execution under Martial Law

In martial law conditions, the needs are different, and accordingly, budget policy priorities regarding the direction of budget funds change dramatically. The issues of defending the country, forming funds to support internally displaced persons, and providing humanitarian aid become paramount. Therefore, the need to find additional sources of budget funding and objectively review budget indicators, both in terms of income and expenditure, becomes more acute. This article aims to analyze the features of the mobilization and use of funds from the state budget of Ukraine in conditions of war, particularly in 2024. Budget legislation changes that regulate the distribution and redistribution of financial resources under martial law conditions were disclosed. Budget indicators of the consolidated budget for recent years were analyzed, as well as indicators of state and local budgets by income and expenditure in the general structure of the consolidated budget. The analysis results indicate an increase in the share of the state budget in the general structure of Ukraine's consolidated budget. The implementation of the state budget was complicated by its significant deficit, as well as the need to service the state debt. The growth of the state debt has taken on significant proportions and almost led to a default in August 2024. According to the study results, the main burden of the country's defence needs falls on the state budget since half of the expenditures aim to ensure the country's defence capability. In addition, expenditures on public order, security and the judiciary, as well as social security for the population are also quite large. A significant amount of state budget expenditures is directed at payments on state derivatives and servicing the state debt. In such conditions, the rational distribution of budget expenditures remains relevant, with a special emphasis on the efficiency of their use to strengthen the armed forces' capabilities, restore critical infrastructure facilities destroyed by the war, and provide social support to the population.