DEBT POLICY AND STATE BUDGET FINANCING SITUATION IN UKRAINE DURING WAR

Abstract

As a result of Russia's aggression against Ukraine, a devastating confrontation unfolded, leading to profound changes in all aspects of the country, particularly in the realm of public finances. The diminished capacity to collect state revenues and a sharp doubling of expenditures created a significant imbalance in the country's financial system, resulting in a deep deficit in the state budget. To overcome this challenging situation, additional financial resources were necessary, which Ukraine managed to secure through grants and loans from its international partners and donors. Within the scope of this scholarly article, an analysis was conducted regarding the volumes and forms of assistance that flowed into Ukraine, particularly in the form of financial aid from other countries and international organizations. Additionally, the impact of changes in the level of national debt on the country's development prospects was examined. It was found that, thanks to the assistance provided, Ukraine was able to secure the necessary funds for the functioning and restoration of vital sectors of the economy and infrastructure. The article concluded that both internal and external measures of financial resource mobilization proved to be crucial components for addressing the financial challenges stemming from the military conflict. The results of the analysis illustrated how grants and loans helped mitigate the impact of budget deficits and contributed to the country's development. Moreover, the article explored how changes in the level of national debt could influence future prospects for Ukraine's economic development.