FISCAL POLICY OF UKRAINE IN TIMES OF CRISIS

Radmila PIDLYPNA

Uzhhorod Trade and Economic Institute of the SUTE, Uzhhorod

https://orcid.org/0000-0001-6886-5834

Lesya RYBAKOVA

Uzhhorod Trade and Economic Institute of the SUTE, Uzhhorod

https://orcid.org/0000-0003-4066-1076

Dmytro LUPEI

Uzhhorod Trade and Economic Institute of the SUTE, Uzhhorod

https://orcid.org/0009-0006-7254-6004

DOI: http://doi.org/10.34025/2310-8185-2025-4.100.02

Keywords: fiscal policy, war, tax liberalization, fiscalization, economic stability, social protection, tax administration, digitalization.

---

Summary

The article examines the transformation of Ukraine’s fiscal policy under the conditions of a full-scale war and the introduction of martial law. It substantiates that the strategic objectives of fiscal policy include ensuring macroeconomic stability, providing social protection for the population, financing the security and defense sector, and promoting long-term sustainable economic development. The key stages of tax system adaptation are analyzed, including the period of radical liberalization as a mechanism to support business and economic activity amid significant wartime losses, as well as the stage of fiscal consolidation, which involved the restoration of full taxation and documentary audits necessary for financing defense expenditures and safeguarding national sovereignty. Particular attention is paid to strengthening the state’s fiscal capacity through an increase in the military levy rate, which contributed to higher budget revenues in 2025. Special emphasis is placed on tax administration and the digitalization of fiscal control, particularly the functioning of the tax invoice monitoring system, where technical shortcomings create additional challenges for compliant businesses. It is emphasized that the effectiveness of fiscal policy depends not only on the level of tax rates but also on transparency and the quality of administration. The study generalizes scientific approaches to the formation of strategic and tactical fiscal policy objectives in times of crisis, defines the role of the state in balancing short-term needs with long-term development priorities, and outlines directions for improving public financial management under conditions of limited resources. The research is based on the analysis of legislative acts, statistical data, and academic publications, making it valuable for scholars, financial management practitioners, and policymakers interested in strengthening Ukraine’s economic resilience. The further effectiveness of fiscal policy depends not only on tax rates but also on the quality of administration, transparency of procedures, and the development of trust between the state and business. The necessity of combining fiscal consolidation with institutional reforms to ensure sustainable post-war development of Ukraine is substantiated.

---

Biographies of authors:

Radmila PIDLYPNA,

Uzhhorod Trade and Economic Institute of the SUTE

Doctor of Economic Science, Associate Professor,

Head of the Department of Finance, Accounting and Taxation

Lesya RYBAKOVA,

Uzhhorod Trade and Economic Institute of the SUTE

Candidate of Economic Sciences, Associate Professor,

Associate Professor Department of Finance, Accounting and Taxation

Dmytro LUPEI,

Uzhhorod Trade and Economic Institute of the SUTE

Bachelor's degree student

---

References:

Bilenko, O.V., Savchenko, S.O. (2022). Transformation of the tax policy mechanism under martial law. Ekonomika ta suspilstvo [Economy and Society], no. (46). DOI: https://doi.org/10.32782/2524-0072/2022-46-19 (in Ukr.).

Bondaruk, T.H. (2022). Fiscal policy under martial law as a factor of economic development of territories. Efektyvna ekonomika [Effective Economy], no. (12). DOI: https://doi.org/10.32702/2307-2105.2022.12.2 (in Ukr.).

Lunina, I.O., Bilousova, O.S., Frolova, N.B. (2022). Peculiarities of fiscal space formation during wartime and post-war periods. Ekonomika ta derzhava [Economy and State], no. (4), pp. 20–28. DOI: https://doi.org/10.32702/2306-6806.2022.4.20 (in Ukr.).

State Tax Service of Ukraine (2025). Budget revenues in 2025. Available at: https://tax.gov.ua/media-tsentr/novini/976169.html (in Ukr.).

Ministry of Finance of Ukraine (2023). State budget expenditures 2023. Available at: https://mof.gov.ua/uk/ (in Ukr.).

Pohrishchuk, H.B., Rudenko, V.V., Dobizha, N.V., et al. (2023). Finansova polityka v Ukraini [Financial Policy in Ukraine]. West Ukrainian National University, Ternopil. Available at: http://dspace.wunu.edu.ua/handle/316497/53181 (in Ukr.).

Tax Code of Ukraine, № 2755-VI (2010, December 2). Available at: https://zakon.rada.gov.ua/laws/show/2755-17#Text (in Ukr.).

On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding taxation peculiarities during martial law, Law of Ukraine № 3219-IX (2023, June 30). Available at: https://zakon.rada.gov.ua/laws/show/3219-20#Text (in Ukr.).

On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding ensuring balanced budget revenues during martial law, Law of Ukraine № 4015-IX (2024, October 10). Available at: https://zakon.rada.gov.ua/laws/show/4015-20#Text (in Ukr.).

On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine regarding the application of norms during martial law, Law of Ukraine № 2120-IX (2022, March 15). Available at: https://zakon.rada.gov.ua/laws/show/2120-20#Text (in Ukr.).

Skoryk, M.O., Brukhal, V.R. (2023). Tax stimulation of business under martial law. Molodyi vchenyi [Young Scientist], no. 4(116), pp. 173–177. DOI: https://doi.org/10.32839/2304-5809/2023-4-116-34 (in Ukr.).

Slatvinska, M.O. (2018). Fiskalna polityka: teoriia, metodolohiia, praktyka [Fiscal Policy: Theory, Methodology, Practice. Atlant, Odesa (in Ukr.).

Khodzhaian, A., Shein, O. (2024). Modernization of Budget Policy within the National Revenue Strategy until 2030 and its Role in Ensuring Economic Security. Ekonomichnyi analiz [Economic Analysis], no. 34(1), pp. 326–336. DOI: https://doi.org/10.35774/econa2024.01.326 (in Ukr.).

Chugunov, I., Makohon, V. (2023). Budget and tax policy under conditions of uncertainty. Scientia Fructuosa, no. (4), pp. 19–31. DOI: https://doi.org/10.31617/1.2023(150)02 (in Ukr.).