WAYS TO STRENGTHEN UKRAINE'S FINANCIAL SECURITY USING BUDGETARY AND TAX POLICY INSTRUMENTS

Abstract

Introduction. The current transformation of Ukraine’s economic environment is unfolding amid growing global risks, increasing financial imbalances, and the urgent need to strengthen the resilience of public finances. Financial security has become a fundamental determinant of national stability, the ability to withstand internal and external threats, and the capacity to ensure long-term economic development. Under these circumstances, the effectiveness of fiscal policy plays a crucial role as a primary instrument for regulating financial flows, redistributing resources, and stimulating economic activity. A well-balanced combination of budgetary and tax mechanisms, improvements in the management of public revenues and expenditures, and enhanced transparency and predictability of the tax system form the basis for reinforcing Ukraine’s financial security. This highlights the need for an in-depth examination of the role of fiscal policy in shaping the country’s financial stability and for identifying pathways to its optimization in the face of contemporary challenges.

Purpose. The purpose of the study is to substantiate the theoretical foundations and practical approaches to strengthening Ukraine’s financial security through the improvement of fiscal policy instruments, to determine their impact on the stability of public finances, and to develop effective mechanisms of fiscal regulation that support balanced economic development and enhance the state’s ability to withstand internal and external threats.

Materials and methods. The materials of the study include the regulatory and legal framework of Ukraine governing the formation and implementation of fiscal policy, official statistical data on the state of public finances, and scholarly works by domestic and foreign authors addressing issues of financial security and fiscal regulation. The research employs methods of theoretical generalization and systematization to define the essence of financial security and the role of fiscal instruments in its enhancement, as well as methods of analysis and synthesis to assess the impact of fiscal mechanisms on the stability of the financial system. Logical generalization is used to formulate conclusions regarding the optimization of budgetary and tax policy aimed at strengthening Ukraine’s financial security.

Results. The scientific article substantiates the key directions for strengthening Ukraine’s financial security through the improvement of fiscal policy instruments and identifies their role in stabilizing public finances. The study reveals the relationship between the effectiveness of fiscal regulation and the resilience of the financial system, which makes it possible to outline the mechanisms through which tax and budgetary tools influence the formation of financial security. The current state of budgetary and tax policy is analyzed, structural imbalances that weaken the country’s financial stability are identified, and directions for their elimination are proposed. The suggested approaches to optimizing fiscal mechanisms contribute to enhancing the efficiency of public resource management, strengthening the revenue base of the budget, reducing fiscal risks, and creating a more predictable and stable financial environment. The results emphasize the importance of comprehensive use of fiscal instruments to ensure Ukraine’s financial security amid increasing internal and external challenges.

Discussion. Further research should focus on an in-depth assessment of the effectiveness of specific fiscal policy instruments and their capacity to maintain the resilience of the financial system under increasing economic and geopolitical risks. A promising direction involves developing a methodological approach for evaluating the impact of fiscal decisions on the level of national financial security, as well as improving models for forecasting fiscal risks. Continued exploration of the interaction between budgetary and tax policy will contribute to the formation of comprehensive solutions aimed at strengthening Ukraine’s financial stability and enhancing the efficiency of public finance management.