№ 6/2023

Fìnansi Ukr. 2023 (6): 61–74https://doi.org/10.33763/finukr2023.06.061

PUBLIC FINANCE MANAGEMENT

LJUTYJ Igor ¹, MIEDVIEDKOVA Nataliia ²

¹Taras Shevchenko National University of Kyiv
OrcID ID : https://orcid.org/0000-0002-3561-2432
²Taras Shevchenko National University of Kyiv
OrcID ID : https://orcid.org/0000-0001-6359-561X

The modern paradigm of the financial policy of the state and the features of its implementation under the war on the territory of Ukraine

Introduction. In peacetime, each country that implements the democratic values of civil society determines the growth of the welfare of citizens and the realization of their economic interests and constitutional rights as the main development priority. At the same time, the state’s financial policy is the main economic instrument of growth. It provides an optimal, efficient distribution of GDP through the institutions of the budget system and forms a stable financial environment, which is a condition for the realization of property rights and the investment potential of legal entities and individuals. Such conditions are ideal for implementing market laws , the mechanism of financial policy, and its methods and tools generally have a corrective and stimulating effect. In a different economic situation, other tools and methods of the state’s financial policy mechanism become effective when the country is at war.
Problem Statement. The peculiarity of the implementation of financial policy in war conditions is a violation of financial stability and macroeconomic imbalances, the main challenge is the cash gaps between revenues and expenditures of the state and local budgets, which is a consequence of a reduction in the revenue component of the state budget when a significant increase in defense and security spending is required.
Purpose. Justification of the modern paradigm of the financial policy of the state and the peculiarities of its implementation in the conditions of war on the territory of Ukraine, as well as the development of measures to implement the priority goals of the state's financial policy in the conditions of war and post-war reconstruction.
Methods. Statistical and analytical methods, a systematic approach, a method of groupings, generalizing characteristics, a tabular method and a comparison method were used. To reveal the essence of financial policy in terms of the formation of budget expenditures in war conditions, the methodology of the theory of uncertainty and the structural-functional approach were applied.
Results. The study of the modern paradigm of the state's financial policy in Ukraine substantiates the need to identify three models for its implementation: 1) in a peaceful state, 2) during the war, 3) financial policy of Ukraine’s recovery. The strategic goals of each model of financial policy may coincide, this primarily applies to goals that should ensure a positive trend in GDP growth and monetary incomes of citizens. However, modern challenges in the period of a full-scale war on the territory of Ukraine determine the only priority goal of the present for the whole society - ensuring Victory and de-occupation of the territory. Measures that make it possible to realize the priority goals of the state's financial policy in war conditions should be divided into two groups: the first is immediate (primary) measures to optimize budget spending in war conditions, and the second is budgetary measures for post-war reconstruction
Conclusions. The justification of the modern paradigm of the financial policy of Ukraine is conditioned by the need for conceptual and methodological research in the field of transformation of the existing financial system of the state, which has not got rid of the elements of administrative-command control levers and to substantiate the legal and institutional foundations for the development of the public finance system of the state. “Recovery bonds” as an investment resource for post-war recovery can become a separate instrument in the market of domestic government borrowings. The priority of realizing the goals of the state’s financial policy model during the war should not deny the strategic goals of realizing the financial policy goals of restoring Ukraine as a European state.

Keywords:financial policy, modern paradigm of financial policy, priorities and goals of financial policy in war conditions, state budget

JEL: E62, H12, H56

Ljutyj I. . The modern paradigm of the financial policy of the state and the features of its implementation under the war on the territory of Ukraine / I. . Ljutyj, N. Miedviedkova // Фінанси України. - 2023. - № 6. - C. 61-74.

Article original in Ukrainian (pp. 61 - 74)

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