Fiscal sustainability and public resource management in the context of recovery: international experience

Abstract

Fiscal sustainability is a key condition for economic recovery in the context of hostilities and post-war development. For Ukraine, where the budget system has become one of the main instruments of sustainability during a large-scale war, the issue of fiscal policy is gaining relevance. Therefore, the relevance of the topic of the article is due to the realities of the Ukrainian economy and the urgent need to build fiscal sustainability of the country now and soon. The object of the study is the key steps of these countries aimed at economic recovery, tax system reform and the introduction of institutional mechanisms of budgetary discipline.

Problem statement. Despite significant international support and adaptation of Ukraine's domestic policy to rapidly changing realities, the task of maintaining fiscal sustainability in conditions of high uncertainty remains difficult. As for many countries that have experienced conflicts, a dilemma arises between the need to finance recovery and ensuring debt stability in the long term. At the same time, an extremely important element of the recovery and balancing system is minimizing costs and maximizing the effect.

Unresolved aspects of the problem.  Previous studies have mostly focused on issues of fiscal consolidation or public debt management, but insufficient attention has been paid to the coordination of post-war fiscal policy with the institutional capabilities of the state. There is also a noticeable lack of comparative analysis of the experience of European countries in adapting individual reforms to existing initiatives.

Purpose of the article. The purpose is to identify and systematize effective fiscal instruments for ensuring stability in the post-war period based on the experience of France, Croatia, Bosnia and Herzegovina, Latvia, and Poland, and to adapt them to Ukraine’s context.

Presentation of the main material. The research applies comparative, structural-logical, and content analysis methods to examine fiscal reforms, institutional innovations, and budgetary practices in post-conflict European states. The findings highlight that fiscal sustainability depends on constitutional debt limits, medium-term expenditure frameworks, independent fiscal councils, and transparent management of reconstruction funds. Achieving fiscal resilience in Ukraine requires institutionalizing fiscal rules, enhancing medium-term budgeting, strengthening fiscal oversight, and ensuring accountability in the use of international aid.

Conclusions. A comparative analysis of the main indicators of public debt and budget deficit in selected countries allowed us to draw practical conclusions regarding the possibilities of adapting the main approaches to modern conditions in Ukraine, in particular in the direction of digitalization and strengthening the administration of individual fiscal mechanisms. The study underscores the necessity of combining domestic reform with European fiscal governance standards to secure long-term stability and investor confidence.