This article explores the implementation of social priorities in Ukraine’s budget policy under martial law caused by Russia’s full-scale aggression. The war has acted as a catalyst for profound transformations of the public finance system, in particular the redistribution of scarce resources between defense and social needs, the search for new revenue sources, and the mobilization of large-scale international assistance. It is argued that, in such circumstances, the state budget performs a dual role: securing defense capability while simultaneously ensuring the minimum level of social support required to preserve societal stability. The analysis focuses on the dynamics and structure of social expenditures during 2021–2025, covering financing for social protection, healthcare, education, pensions, as well as programs targeting internally displaced persons and veterans. Despite a decline in their share of the overall budget, social expenditures remain a critical instrument for sustaining human capital and social cohesion. The study identifies major challenges, including a persistent structural deficit, risks of debt dependence, insufficient targeting of benefits, and excessive centralization of fiscal decision-making. Drawing on both Ukrainian and international research, the article substantiates directions for reforming budget policy. These include enhancing the targeting of social programs through digital registries and automated monitoring; introducing progressive taxation to reduce inequality; expanding the fiscal autonomy of local governments; diversifying sources of financing for social protection; and strengthening public–private partnerships in the delivery of social services. The contribution of the study lies in conceptualizing the balance between social resilience and fiscal stability as a key criterion of wartime budget policy. The policy implications are twofold: first, to provide recommendations for the allocation of budget funds to priority areas and the institutionalization of sustainable mechanisms of support for vulnerable groups; second, to highlight tools for minimizing social risks through scenario-based planning and structural adjustment. The findings suggest that the effective implementation of social priorities is not only essential for survival during wartime but also constitutes the foundation for post-war recovery, modernization of social infrastructure, and sustainable economic growth in Ukraine.
Плєшакова et al. (Wed,) studied this question.