Utilising Fiscal Instruments to Drive Economic Growth Effectively
DOI:
https://doi.org/10.56294/sctconf20251484Keywords:
budget funds, economic growth, financial sustainability, fiscal policy, tax instruments, tax policyAbstract
Introduction: In these times of contemporary crises, fiscal policy has a key role to play in the national resilience and economic stability. These challenges have become even more pressing due to Ukraine's ongoing war and need substantial financial means to recover.
This study is a review of the effect tax revenues to budget income. It is grounded on literature sources and statistic data with more than thirty bibliographic references of academic papers, official reports and policy documents.
Results: The research emphasizes that during conflict there is the necessity to optimize existing financial resources as well as look for additional sources of revenue. This reinforces how such fiscal policies play to cultivate economic growth, stabilize finances and appropriately utilize the instruments of taxation. This shows trends of nation revenues and expenditures and acknowledge to the fact that taxation is one of the means of be-fitting financial demand as well as maintaining the economy stable.
Conclusions: Fiscal reserves and tax instruments are needed under martial law for maintaining financial stability. But for the effective implementation of these the administrative structures need to be enhanced. Especially during the crisis, we need a balanced tax burden, a favourable business climate and new revenue sources.
References
1. Martynova LV, Shedko BV. Problems of formation and implementation of fiscal policy in Ukraine. In: The world of scientific research: materials of the International multidisciplinary scientific Internet Conference; 2024. p. 21–23. Sole proprietor Shpak VB.
2. Kryvonos DA. Tax policy in the system of state regulation of economic development. Economy and Society. 2023;(57):1–8. doi:10.32782/2524-0072/2023-57-97. DOI: https://doi.org/10.32782/2524-0072/2023-57-97
3. Osadchuk SV. The role of tax instruments in the development of territorial communities. Actual problems of public administration. 2021;3(84):234–238.
4. Kriukova IO, Andriushchenko IS, Rudenko SV. Modern challenges and tasks for the tax system of Ukraine in the context of sustainable development. Tavrian Scientific Bulletin. Series: Economics. 2024;(19):158–165. doi:10.32782/2708-0366/2024.19.19. DOI: https://doi.org/10.32782/2708-0366/2024.19.19
5. Bielialov T, Kalina I, Goi V, Kravchenko O, Shyshpanova N. Global experience of digitalisation of economic processes in the context of transformation. J Law Sustainable Dev. 2023;11(3):e0814. doi:10.55908/sdgs.v11i3.814. DOI: https://doi.org/10.55908/sdgs.v11i3.814
6. Bachinsky DV. Fiscal policy of the state in the crisis period. In: Economics, finance, banking, and education: modern challenges and innovations: materials of the VIII International Scientific and Practical Internet Conference; 2022. p. 16–18. ONEU.
7. Zhovnir NM, Halay VM. Coordinated fiscal policy in the context of military operations. Effective Economy. 2024;(2):1–16. doi:10.32702/2307-2105.2024.2.41. DOI: https://doi.org/10.32702/2307-2105.2024.2.41
8. Shu Ch, Yastrubskyi M. Theoretical and applied principles of fiscal policy formation in the conditions of the development of Ukrainian-Chinese economic activity. Kyiv Econ Sci J. 2023;(3):180–187. doi:10.32782/2786-765X/2023-3-25. DOI: https://doi.org/10.32782/2786-765X/2023-3-25
9. Shilo ZhS. Prospects for the development of taxation in the state. In: The XII International Scientific and Practical Conference: Actual priorities of modern science, education and practice; 2022. p. 249–254. International Science Group. doi:10.46299/ISG.2022.1.12. DOI: https://doi.org/10.46299/ISG.2022.1.12
10. Sytnyk NS, Bednarchuk VV. Customs policy of Ukraine in the context of the COVID-19 pandemic. Economy and Society. 2022;(37):1–7. doi:10.32782/2524-0072/2022-37-15. DOI: https://doi.org/10.32782/2524-0072/2022-37-15
11. Leshchuk HV, Ivasiuk NB. The tax system of Ukraine in the context of the COVID-19 pandemic: current realities and forecasts. Sci Bull Uzhhorod Natl Univ Ser Int Econ Relat World Econ. 2020;(33):87–92. doi:10.32782/2413-9971/2020-33-16. DOI: https://doi.org/10.32782/2413-9971/2020-33-16
12. Kniazkova VI, Krylenko VI, Rudinska OV. Features of business taxation in Ukraine in wartime. In: Modern research in world science: The 11th International scientific and practical conference; 2023. p. 1273–1277. SPC “Sci-conf.com.ua.”
13. Hetmanets OP, Chorna AM, Siadrysta II. Peculiarities of local taxation as a basis for the formation of revenues of united territorial communities in Ukraine. Priazovsky Econ Bull. 2022;1(30):100–105. doi:10.32840/2522-4263/2022-1-17. DOI: https://doi.org/10.32840/2522-4263/2022-1-17
14. Smyrna KV. Fiscal policy under martial law. In: Modern achievements and prospects for socio-economic development: International scientific and practical conference; 2024. p. 24–29. Research Europe.
15. Bondaruk TH. Fiscal policy of Ukraine as a factor of sustainable development of territories under martial law. Econ Horiz. 2023;3(25):57–67. doi:10.31499/2616-5236.3(25).2023.286686. DOI: https://doi.org/10.31499/2616-5236.3(25).2023.286686
16. National Bank of Ukraine. Commentary by the NBU on the change in real GDP in 2022. Official website of the National Bank of Ukraine. 2023. Available from: https://bank.gov.ua/ua/news/all/komentar-natsionalnogo-banku-schodo-zmini-realnogo-vvp-u-2022-rotsi.
17. National Council for the Recovery of Ukraine from the War. Project of the Recovery Plan of Ukraine: Materials of the working group “Functioning of the financial system, its reform and development.” 2022. Available from: https://www.kmu.gov.ua/storage/app/sites/1/recoveryrada/ua/digitization.pdf.
18. Skulysh I, Fathutdinov V. Analysis of the dynamics of income and expenses of the pension fund of Ukraine. Financial Credit Activity Probl Theory Pract. 2022;3(44):72–81. doi:10.55643/fcaptp.3.44.2022.3751. DOI: https://doi.org/10.55643/fcaptp.3.44.2022.3751
19. Diedushev IV. Budget policy: concepts and tasks. Sci Bull Uzhhorod Univ Ser Law. 2023;2(77):37–41. doi:10.24144/2307-3322.2023.77.2.5. DOI: https://doi.org/10.24144/2307-3322.2023.77.2.5
20. Levytska S, Pershko L, Akimova L, Akimov O, Havrilenko K, Kucherovskii O. A risk-oriented approach in the system of internal auditing of the subjects of financial monitoring. Int J Appl Econ Finance Account. 2022;14(2):194–206. doi:10.33094/ijaefa.v14i2.715. DOI: https://doi.org/10.33094/ijaefa.v14i2.715
21. Samoiliuk M. Tracker of the economy of Ukraine during the war. Center for Economic Strategy. 2024. Available from: https://ces.org.ua/tracker-economy-during-the-war/.
22. Kryshtanovych M, Shulyar R, Svitlyk M, Zorya O, Fatiukha N. Theoretical and methodological approaches to the formation of a model for increasing the efficiency of the system for ensuring the economic security of a banking institution. Financial Credit Activity Probl Theory Pract. 2023;2(49):56–64. doi:10.55643/fcaptp.2.49.2023.3994. DOI: https://doi.org/10.55643/fcaptp.2.49.2023.3994
23. Dzhyhora O, Dovhalyuk V. The current state of macroeconomic indicators of the development of the national economy during the Russian-Ukrainian war. Soc Security. 2023;1(1):3–10. doi:10.26642/sas-2023-1(1)-3-10. DOI: https://doi.org/10.26642/sas-2023-1(1)-3-10
24. Tkachuk N, Stashchuk O. Monitoring of the public debt of Ukraine under the conditions of marital state. Econ J Lesya Ukrainka Volyn Natl Univ. 2024;4(36):83–96. doi:10.29038/2786-4618-2023-04-83-96. DOI: https://doi.org/10.29038/2786-4618-2023-04-83-96
25. VRU. On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine on Peculiarities of Taxation and Reporting during the Period of Martial Law: Law of Ukraine of 25.11.2022 № 2118-IX. Available from: https://zakon.rada.gov.ua/laws/show/2118-20#n5.
26. Bondaruk TH. Fiscal policy under martial law as a factor of economic development of territories. Effective Economy. 2022;(12):1–18. doi:10.32702/2307-2105.2022.12.2. DOI: https://doi.org/10.32702/2307-2105.2022.12.2
27. VRU. On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine on the Validity of Norms for the Period of Martial Law: Draft Law of Ukraine of 14.03.2022 № 7137-d. Available from: https://itd.rada.gov.ua/billInfo/Bills/Card/39235.
28. VRU. On the Protection of the Interests of Subjects of Submission of Reports and Other Documents during the Period of Martial Law or State of War: Law of Ukraine of 26.12.2023 № 2115-IX. Available from: https://zakon.rada.gov.ua/laws/show/2115-20#Text.
29. National Institute for Strategic Studies. Tools of tax support for business in wartime. 2022. Available from: https://niss.gov.ua/news/novyny-nisd/instrumenty-podatkovoyi-pidtrymky-biznesu-u-voyennyy-chas.
30. Meshcheriakov A, Bodenchuk L, Liganenko I, Rybak O, Lobunets T. Trends in the development of the banking system of Ukraine under conditions of military actions and globalisation influences. Financial Credit Activity Probl Theory Pract. 2023;3(50):8–22.
31. Mironova N, Koptieva H, Liganenko I, Sakun A, Chernyak D. Modelling the selection of innovative strategy for development of industrial enterprises. WSEAS Trans Bus Econ. 2022;19:278–291. doi:10.37394/23207.2022.19.26. DOI: https://doi.org/10.37394/23207.2022.19.26
32. Yankovyi O, Tsimoshynska O, Koval V, Kazancoglu Y, Kotlubai V, Filipishyna L. Applying fuzzy logic to the assessment of latent economic features. In: Advances in soft computing applications; 2023. p. 1–21. doi:10.1201/9781003425885-1. DOI: https://doi.org/10.1201/9781003425885-1
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Anatolii Lutsyk , Maryna Pravdiuk , Oleh Deneha , Vadym Puhalskyi, Inesa Shepel (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.
The article is distributed under the Creative Commons Attribution 4.0 License. Unless otherwise stated, associated published material is distributed under the same licence.