FINANCING OF SOCIAL PROTECTION AND SOCIAL SECURITY UNDER MARTIAL LAW

Abstract

This article examines the financing of social protection in Ukraine, analyzing both the pre-war period and the period following the full-scale invasion, with emphasis on key systemic changes. The study identifies the main entities financing Ukraine’s social protection and security system, noting significant increases in social assistance recipients, state and local budget payments, budget deficits, and international partner support. The research determines priority social expenditures at state and local budget levels, analyzes the distribution of social sphere financing obligations between state and local authorities, and examines changes during martial law.
The analysis highlights the advantages of direct state budget financing for social expenditures and evaluates the role of state social funds, particularly assessing the Pension Fund of Ukraine’s capability to fulfill its mandated functions. The study identifies primary funding sources for social expenditures under martial law conditions, with special attention to financing support for internally displaced persons (IDPs) and war veterans. It analyzes IDP demographics, including age, gender, and regional distribution, while documenting various forms of state aid and international support programs for this population. Additionally, the research examines projections for war veteran populations and their families, assessing the state’s capacity to finance social expenditures amid growing numbers of vulnerable persons.
The findings establish the necessity for developing a clear social policy strategy with defined fundamental concepts to guide future transformations. The study identifies problematic areas in social security financing and proposes improvements, including the need to redistribute economic responsibility for social guarantees among the state, enterprises, and citizens. Finally, it determines key principles and directions for state participation in enhancing the social protection system’s overall functioning and its resilience to various shocks.