Fiscal decentralization in Ukraine under martial law

The article examines the role of fiscal decentralization in Ukraine during martial law in ensuring the vital activities of the state. On the basis of foreign sources, it has been determined that decentralization is not a one-way process that has a linear character and leads to ambiguous consequences, although it generally has a positive effect on indicators of macroeconomic development. Scientists usually associate its success with the stabilization of the socio-economic situation, ensuring the high quality of local budgets and budget management, transparency of the budget process. It was found that decentralization in our country took place in the turbulent conditions of the hybrid war unleashed by Russia, as well as the global coronavirus pandemic. Despite this, positive results were achieved in strengthening the financial base of local authorities and self-government, and authoritative international organizations gave a high assessment of the decentralization process, including the fiscal one. The situation with the filling of local budgets during the war and the implementation of expenditures was analyzed, and the positive and contradictory consequences of the changes made to the relevant legislation were determined. The uncertain nature of the further development of events due to the impossibility of predicting the duration of active hostilities, the huge scale of destruction, the relocation of business, and the need for constant adjustment of the legal framework is emphasized. It was concluded that there is a need to develop a strategic document that would clearly outline all changes and innovations related to inter-budgetary relations and the relevant powers of local government and local authorities during the period of martial law. This would contribute to increasing the transparency of the budget process, would prevent the emergence of contradictions in the relations between central and local authorities and self-government.