THE ROLE OF INTERNATIONAL SUPPORT IN FINANCING UKRAINE’S STATE BUDGET EXPENDITURES DURING THE WAR

Abstract

The article explores the role of international financial support in financing Ukraine’s state budget expenditures under wartime conditions. It analyzes the volumes of international aid received during 2022–2024, totaling approximately $106 billion, including $47.3 billion in 2024. The contribution of key international partners, such as the European Union, the United States, the International Monetary Fund, the World Bank, and Japan, to financing social programs, infrastructure restoration, and strengthening the country’s defense capabilities is examined. Special attention is given to the digitalization of state budget expenditure processes, which is expected to enhance resource use transparency, reduce corruption risks, and build the trust of international partners. Recommendations are proposed to integrate international aid into national development strategies, improve monitoring efficiency, and address the risks of overlapping or misallocated funding. The author’s approach emphasizes improving the management of state budget expenditures through the application of advanced technologies and international expertise to ensure macro-financial stability and long-term economic growth. The study highlights the necessity of optimizing the use of international resources by introducing innovative mechanisms in the processes of financing state expenditures. The digitalization of financial operations and the adoption of transparent management systems are proposed as critical tools for achieving sustainable economic recovery. Moreover, the research identifies challenges related to the effective allocation of international resources, particularly in addressing issues of duplicative or inefficient funding, and outlines strategic solutions to overcome these obstacles. The findings of the study underscore the pivotal role of international cooperation in supporting Ukraine’s resilience during extraordinary financial and social challenges, offering a comprehensive roadmap for further stabilization and development. The practical value of the research lies in its detailed recommendations for enhancing the efficiency of managing international resources and integrating this support into Ukraine’s national economic strategies. By leveraging advanced technologies and fostering strong partnerships with international donors, Ukraine can strengthen its financial resilience, ensure the fulfillment of critical state functions, and create the foundation for sustainable economic growth and long-term prosperity.