BUDGET SYSTEM OF UKRAINE IN THE CONTEXT OF FINANCIAL MANAGEMENT

The article is devoted to a comprehensive study of the transformation of the Ukrainian budget system from the perspective of financial management under the conditions of full-scale war during 2021–2025. The primary aim of the study is to evaluate structural shifts in consolidated budget indicators, analyze the mechanisms of budget deficit financing, and identify systemic financial management challenges arising from prolonged warfare. To achieve these objectives, the author employed methods of statistical, comparative, and structural analysis based on official open data from the Ministry of Finance of Ukraine and the “Open Budget” web portal. The main results of the study indicate that expenditure growth outpaced revenue growth, leading to a substantial and persistent consolidated budget deficit. Significant structural reprioritization occurred within expenditure categories, with security and defense expenditures accounting for more than 65% of total budget expenditures, while the relative shares of social, educational, and healthcare expenditures declined. The research also demonstrates a substantial shift in deficit financing mechanisms, indicating an increasing dependence on external financial resources and international financial support. Consequently, the total amount of public and government-guaranteed debt increased substantially, while its ratio to GDP reached 101.2% in 2025, creating significant long-term risks to sovereign debt sustainability. Revenue structure also changed, with a greater role of non-tax revenues and a lower relative share of tax revenues and international grants. The analysis of budget execution demonstrates deviations between planned and actual revenues and expenditures, while a pronounced end-of-year asymmetry in cash expenditures was identified, characterized by a substantial concentration of expenditures in December. These findings highlight the need to improve budget liquidity management, cash-flow forecasting, medium-term budget planning, and debt risk management to strengthen fiscal resilience during the war and provide a sound financial basis for post-war recovery.