ARCHITECTONICS OF THE STATE'S FINANCIAL POTENTIAL UNDER MODERN SECURITY CHALLENGES

Abstract

The theoretical and methodological foundations for forming the financial potential of the state as a key prerequisite for ensuring economic stability and financial security in the context of modern security challenges are explored in this article. The architectonics of financial potential is revealed, its structural elements are identified – budgetary resources, public debt, gold and foreign exchange reserves, and investment potential – and their interconnection with the financial security of the state is characterised. Monitoring of revenues and expenditures of the Consolidated Budget of Ukraine is carried out, and the dynamics of public debt and gold and foreign exchange reserves are studied. The impact of transformation processes in public finances on the state's ability to mobilise resources to maintain macroeconomic stability and implement development priorities is analysed. The analysis revealed significant changes in the structure of budget revenues, expenditures and debt caused by military, economic and institutional factors. It is proved that fullscale war has led to a reduction in the tax base, an increase in the share of external transfers and debt burden, thereby limiting the financial capacity of the state and increasing its dependence on international aid and credit support from partners. The interdependence between the level of financial potential and financial security, their synergy in ensuring the stability of the financial system and the sustainable development of the economy, is substantiated. A conceptual approach to expanding the architecture of financial security through the integration of instruments increasing financial potential is proposed. The main directions for enhancing financial potential are identified: improving budgetary policy, optimising debt burden, increasing the efficiency of financial resource use, developing the capital market and deepening the transparency of public finance management. Practical recommendations are formulated for improving public finance management mechanisms aimed at strengthening financial potential, minimising risks and ensuring the long-term sustainability of the economic system.