Financial and budgetary mechanisms for public policy implementation in the context of ukraine’s post-war recovery

Abstract

The article examines financial and budgetary mechanisms for public policy implementation in the context of Ukraine’s post-war recovery. It is substantiated that the full-scale war has caused significant socio-economic losses, large-scale destruction of infrastructure, a decline in economic activity, and a substantial increase in the need for financial resources to ensure the country’s reconstruction. Under such conditions, financial and budgetary mechanisms acquire strategic importance as instruments for mobilizing, allocating, and effectively utilizing resources necessary for implementing public policy priorities and ensuring sustainable territorial development.

The study analyzes contemporary scientific approaches to understanding the essence of financial and budgetary mechanisms for public policy implementation. It is established that modern research considers the budgetary system not only as a mechanism for financing public expenditures but also as a comprehensive instrument for managing socio-economic development, structural modernization of the economy, territorial development, and ensuring social stability.

The practical experience of financial and budgetary support for Ukraine’s post-war recovery is examined. The role of the state budget, local budgets, international financial assistance, the Fund for the Elimination of the Consequences of Armed Aggression, the eRecovery programme, and the Ukraine Facility mechanism in financing reconstruction processes is identified. It is proved that the current recovery financing system is characterized by a multi-channel structure and a combination of domestic and external sources of resource provision. At the same time, several challenges have been identified, including the need to improve the efficiency of budgetary resource utilization, strengthen interinstitutional coordination, and enhance monitoring and evaluation systems for budget programme performance.

The author proposes an approach to improving financial and budgetary mechanisms for public policy implementation, which involves the formation of an integrated system of strategic management of financial resources for post-war recovery based on the principles of performance-based budgeting, digitalization of management processes, fiscal decentralization, and the attraction of international and private investments. The feasibility of creating a unified digital platform for managing reconstruction-related financial flows is substantiated. Such a platform would enhance transparency in the use of funds, improve the effectiveness of managerial decision-making, and contribute to achieving Ukraine’s strategic development goals.