THEORETICAL ASPECTS OF FINANCIAL STABILITY IN UKRAINE’S PUBLIC FINANCIAL SYSTEM

Анотація

This article examines the critical issue of ensuring the financial stability of Ukraine’s public finance system amid wartime challenges and national post-war recovery. The study aims to analyze key threats and vulnerabilities – such as the rapid rise in debt burden, sharp decline in budget revenues, and escalating needs for defense and social expenditures – and to propose conceptual, strategic approaches to developing a sustainable and effective state financial policy. The research argues for the importance of balancing various budget financing sources, strengthening the domestic government debt market, and enhancing transparency and institutional capacity within public finance management. In wartime and post-war contexts, financial stability must be viewed as a multidimensional concept, encompassing economic, institutional, and socio-political dimensions. Its achievement demands a combination of anti-crisis measures and a long-term, recovery-oriented modernization strategy. Based on the analysis, the article substantiates the need to revisit intergovernmental fiscal relations, develop instruments to reinforce public trust in institutions, and create financial tools capable of supporting sustainable post-war reconstruction. The findings underscore several unresolved challenges: the optimal mix between debt and internal revenues, the role of fiscal decentralization and local government autonomy, the effectiveness of tax administration, and combating corruption through enhanced oversight and civic engagement. The article highlights the strategic shift in budgetary priorities toward defense, recovery, and longterm development, and emphasizes the dual role of public finance – as both a crisis buffer and a catalyst for modernization, particularly through public–private partnerships and specialized recovery funds. The institutional dimension is decisive: robust mechanisms of control, risk management systems, digitalization of budget processes, and independent fiscal institutions are prerequisites for financial stability. The ability of Ukraine’s public finance system to maintain stability under extreme uncertainty depends on its resilience, multifaceted adaptability, and legitimacy. By diversifying revenue sources, reinforcing institutional frameworks, and guiding spending toward strategic recovery, public finance can become the foundation of long-term sustainable growth and societal trust.

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