Budgetary and Tax Instruments in EU Countries and Possibilities for Their Adaptation to Ukrainian Realities

Abstract

The study addressed the need for effective financial management and the modernization of Ukraine's tax system by analyzing foreign experiences, particularly those of EU countries. It demonstrated how fiscal strategies from developed nations could inform Ukraine's efforts to stabilize its economy during wartime. The researcher examined EU tax systems in comparison with Ukraine's, aiming to propose effective reforms in taxation, budgeting, and public fund management. Special focus was placed on the fiscal practices of individual EU states during military conflicts, including wartime economic stimulus. The methodology involved a review of academic literature, comparative analysis of EU and Ukrainian fiscal policies, an assessment of Ukraine's financial strategy under armed conflict, and a regression analysis of fiscal outcomes. It also included a systematic review of military economy and government expenditure frameworks. The study showed that while Ukraine attempted to simplify its tax structure, the complexity of war demanded alternative financial management strategies. The researcher found that ensuring economic stability during wartime required the implementation of stricter fiscal policies. Although the Central Bank had previously promoted a moderate fiscal stance, it became necessary to take additional measures to maintain budget liquidity and support critical expenditures. By limiting public borrowing and aiming to enhance social equity through fiscal policy, the government sought to address inequality. However, the uneven application of these policies contributed to disjointed social development and revealed the risk of exceeding GDP limits. The study concluded that a balanced, adaptive fiscal approach was essential for managing the Ukrainian economy in wartime conditions.