Financial and budgetary mechanisms of the recovery of the economy and infrastructure of Ukraine destroyed by the armed aggression of the Russian Federation

  • N. V. Vorotina  PhD in Law, Associate Professor, Senior Researcher of the Department of Problems of Public Administration and Administrative Law, V.M. Koretsky Institute of State and Law of National Academy of Sciences of Ukraine http://orcid.org/0000-0002-8894-9645
Keywords: Recovery plan of Ukraine, recovery and modernization of the economy and infrastructure, martial law.

Abstract

The article is devoted to the problems of applying financial and budgetary mechanisms that can be used to restore the economy and infrastructure of Ukraine, destroyed by the armed aggression of the Russian Federation. Possible sources of funding for these measures were investigated. Attention is focused on the need not just for restoration, but for the global modernization of all material assets with the use of the latest advanced technologies, modern approaches to energy saving, the introduction of «green» energy, and the use of the experience of the world's most powerful countries in building modern infrastructure of cities and suburban settlements.

It was emphasized that all measures to restore and modernize the country need legal consolidation.

The purpose of the article is to identify financial and budgetary mechanisms that can be used to restore and modernize the economy and infrastructure of Ukraine, destroyed by the armed aggression of the Russian Federation, and to develop proposals for legal regulation of these processes.

Scientific novelty of the article lies in the fact that it is devoted to very urgent and little-researched issues of the use of financial and budgetary mechanisms to restore the destroyed economy and infrastructure of the country both in the conditions of martial law and in the post-war period. Based on the analysis of both historical and modern world experience, possible ways of financing both budgetary and all other financial losses caused to our state by the war started by Russia against Ukraine are proposed. Conclusions were formulated and proposals were developed for improving the legislation of Ukraine in this area.

Research methodology: a set of philosophical, general scientific methods, in particular dialectical, logical-semantic, structural-functional, analysis, synthesis, and others, as well as mathematical, statistical methods, methods of socio-economic forecasting, economic modeling, etc.

Conclusions. The restoration of the economy and infrastructure of our state, destroyed as a result of the full-scale military invasion of the Russian Federation into Ukraine, is a very difficult and responsible process and requires extremely large financial resources. Russia's military actions have destroyed cities and villages, citizens' homes, transport, industrial, military, and communal infrastructure facilities, the economy is practically non-functioning, tens of thousands of civilians have been destroyed, and our military died protecting us from invaders.

In our opinion, we do not need to mechanically restore what is technically and morally outdated, we need to build new and modern ones, that is, not just restore, but global modernization. At the same time, it is necessary to use progressive foreign experience and the latest advanced technologies.

It is urgently necessary to consolidate these processes in legal regulations. Therefore, we propose to approve the Strategy for the restoration and modernization of the economy and infrastructure of Ukraine for five to ten years, which will outline both the general vision of this process and its details in each direction. The strategy must be developed by the Cabinet of Ministers together with partner countries and international financial organizations that provide financial assistance for these purposes. According to the Strategy, it is necessary to develop a Plan of measures for its implementation.

These documents must be approved by the Cabinet of Ministers of Ukraine, and the Ministries and other central bodies of executive power must be tasked with ensuring the timely implementation of the Action Plan and submitting detailed reports on its implementation. For the successful implementation of the Strategy, considerable attention must be paid to the establishment of strict control over its implementation with a special emphasis on transparent and rational use of allocated financial resources. We believe that control should be carried out not only by the Cabinet of Ministers of Ukraine, but also by independent control bodies. It is also necessary to provide a legal mechanism for providing all opportunities for foreign states and international organizations to control the spending of funds received from them in the form of financial assistance. In addition, real and effective public control should be established over these processes. For this, it is necessary to develop appropriate legal norms and in the near future to supplement the current legislation with them.

References

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Published
2022-08-18
How to Cite
Vorotina , N. (2022). Financial and budgetary mechanisms of the recovery of the economy and infrastructure of Ukraine destroyed by the armed aggression of the Russian Federation . Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine, (4), 70-79. https://doi.org/10.32886/instzak.2022.04.08