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Analysing the Structure and Execution of Public Expenditures Under Martial Law
Lutsyk A. I.

Lutsyk, Anatolii I. (2026) “Analysing the Structure and Execution of Public Expenditures Under Martial Law.” Business Inform 8:392–400.
https://doi.org/10.32983/2222-4459-2026-8-392-400

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
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UDC 336.14:355.271

Abstract:
The full-scale armed aggression has caused a radical transformation of Ukraine’s fiscal policy, resulting in the concentration of financial resources on defence, security, social protection, and ensuring the continuity of government operations. The relevance of the study stems from the need to assess not only the volume and structure of public expenditure but also the specific features of its execution through the treasury mechanism under martial law, amid limited domestic revenues and dependence on international financing. Based on the official reports of the Ministry of Finance of Ukraine, data from international organisations, and recent scientific publications, it was found that the full-scale war has caused a transition from the pre-war resource allocation model to an emergency budgeting regime in which the security and defence sector predominates, while the financing of civilian government functions depends on external support. The study substantiates a comprehensive approach to analysing public expenditure under martial law that combines the assessment of its volume, structure, dynamics, treasury execution mechanism, and effectiveness. It was found that the cash expenditure of the State Budget of Ukraine increased in nominal terms during 2021–2025. The concentration of budgetary resources on defence and security was identified as the principal structural change. The findings indicate the growing dependence of budget execution on international financial support, domestic government borrowing, and the capacity of public authorities to reallocate limited resources. The study substantiates the need to move beyond assessing expenditure solely in terms of cash execution towards a comprehensive analysis of its timeliness, intended use, efficiency, and public outcomes.

Keywords: State budget; public expenditure; martial law; security and defence; treasury services; budget deficit.

Fig.: 2. Tabl.: 2. Bibl.: 15.

Lutsyk Anatolii I. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance named after S. I. Yurii, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: [email protected]

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