PROBLEMS OF USING PUBLIC FUNDS FOR THE RECONSTRUCTION OF UKRAINE

The article examines the problems that arise in the process of using public funds for the restoration of Ukraine. The devastating consequences of military aggression for the socio-economic life of Ukraine are summarized. It was emphasized that the amount of resources the country will need for its recovery remains unclear. As of December 31, 2023, the total cost of reconstruction and recovery in Ukraine is estimated at $486 billion over the next decade. At the same time, indirect losses to the Ukrainian economy from the war have exceeded $1.1 trillion. It is stated that Ukraine has begun to form a system of regulatory and legal frameworks to ensure restoration processes. Sources of financing costs are identified. The main source of recovery at the state level has been identified as the budget program "Fund for Eliminating the Consequences of Armed Aggression", introduced in 2022. The analysis showed that during 2023–2024, the Process of allocating funds from the Fund for the Elimination of the Consequences of Armed Aggression did not ensure the achievement of the goal declared in the Law on the State Budget of Ukraine. The reason was determined to be the non-compliance of the activities with the established norms and rules of the regulatory, legal and organizational support of the Process, the lack of priority in the selection of projects for financing from the Fund, and the lack of transparency of both the Process as a whole and its individual stages in particular. It is substantiated that restoration processes are hampered not so much by the lack of the necessary amounts of funding, but by the inefficiency and opacity of their use. It is concluded that the adoption of the law “On the Principles of Restoration of Ukraine”, the development of a detailed plan for the restoration and development of regions and its submission in accordance with the established procedure for consideration by the Cabinet of Ministers of Ukraine; the establishment at the law level of a transparent mechanism for the use of the Fund’s funds and the procedure for determining the priority of objects; strengthening the responsibility of the participants in the Process for assessing the effectiveness of the implementation of relevant budget programs; ensuring competitiveness in public procurement for reconstruction.