This analysis reveals the role of international financial support in addressing Ukraine's budget deficit and emphasizes the need for debt sustainability.
Introduction. International financial support for Ukraine proved to be extremely important in the conditions of war, when there was a sharp increase in expenses and an aggravation of the risks of revenue mobilization. Issues. The war resulted in negative changes in the financing system. A sharp increase in expenses required a corresponding increase in income. However, due to the aggravation of fiscal risks, the formation of the revenue base turned out to be limited. Gaps between expenses and income increased, which led to a sharp increase in the budget deficit. The complication of resource mobilization within the framework of financing the state budget was noted. The risks of maintaining funds on a non-debt basis (revenues from privatization of state property and conducting active operations within the state budget) have become more acute. Attracting funds by placing domestic borrowings did not ensure the coverage of such gaps (due to the insufficient level of development of the financial market). Mobilization of funds from the international capital market deteriorated due to the decrease in the country's credit ratings. Under such conditions, international financial support for Ukraine has become an important component for solving the problems of financing expenses (while maintaining budget balance and debt sustainability) during the war. The purpose is to determine the features of international financial support provided to Ukraine to fulfill the tasks of balancing the state budget based on increasing financial resources to cover expenses during the war. Methods. Methods used: historical, logical, abstraction, description, generalization, comparison, grouping, analysis, synthesis. Results. The goals and objectives of international financial support for Ukraine have been determined, an institutional structure has been introduced to ensure it, real sources of fund mobilization have been involved, and their implementation in public administration practice has been implemented. The requirements for receiving international financial assistance by Ukraine and the principles of conducting operations with the assets received have been determined. Conclusions. The full-scale attack by the Russian Federation on Ukraine has necessitated a sharp increase in state expenditures and their resource support. However, the financial system has also been negatively affected, so its rapid restructuring has been impossible. International financial support for Ukraine from democratic forces has allowed solving such tasks. The goals of such support have been adopted, an appropriate institutional structure has been created to achieve them, instruments and mechanisms for implementing such assistance have been introduced. The necessary procedures for conducting such operations and methods of its implementation have been provided. At the same time, the conditions for the use of international assistance by Ukraine, the principles of spending financial resources, and the requirements for transparency and accountability of financial transactions were determined. The introduction of international financial support to Ukraine allowed to ensure the balancing of the state budget during the war and maintain debt sustainability.
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Vasyl KUDRJASHOV (2025) studied this question.
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