Article

Impact of global trends on Ukrainian fiscal policy under martial law

Oleksandra Vagonova Viktoriia Lola Fedir Terkhanov Yevhen Bushtruk
Abstract

Analysis of the impact of global trends, such as the decline in international trade, armed conflicts, political changes in other countries and the introduction of new technologies, is necessary for adapting Ukraine’s fiscal policy, ensuring effective public finance management and maintaining economic stability under martial law. The study aimed to examine the impact of global trends on Ukraine’s fiscal policy and to develop and substantiate recommendations for overcoming their negative effects and using new opportunities to ensure economic stability under martial law. The study analysed the adaptation strategies of the Ukrainian government, such as increasing tax revenues, optimising public spending, attracting international assistance and using innovative technologies in the tax sphere. The impact of these measures on economic stability, budget deficit and long-term prospects for economic recovery was assessed. The study examined the impact of inflationary pressures on public finances, as well as the effectiveness of existing mechanisms for combating inflation and their role in stabilising the economy. The study also considered the consequences of the decline in international trade for Ukraine’s economy, including lower export revenues and changes in the conditions of international economic cooperation. The analysis also covered the impact of geopolitical instability, in particular the outbreak of armed conflicts around the world, on defence financing needs, which requires adjustments to budget priorities. The analysis of electoral processes in other countries and their possible impact on Ukraine’s fiscal policy due to changes in international economic conditions was conducted. In addition, the study analysed the introduction of artificial intelligence in the field of entrepreneurship, which can have both a positive and negative impact on the tax system and the budget, particularly in the context of changes in tax revenues and employment structure. The results of the study can be useful for developing effective policy solutions aimed to maintain economic stability and financial sustainability of the country in times of crisis  

Keywords

global economic trends; elections; conflicts; artificial intelligence; economic stability; international assistance

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Received 02.01.2025, Revised 18.04.2025, Accepted 28.05.2025

Retrieved from Volume 18, No. 1, 2025

Suggested citation

Vagonova, O., Lola, V., Terkhanov, F., & Bushtruk, Ye. (2025). Impact of global trends on Ukrainian fiscal policy under martial law. Democratic Governance, 18(1), 28-47. https://doi.org/10.56318/dg/1.2025.28

https://doi.org/10.56318/dg/1.2025.28

Pages 28-47

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