Proceedings of the International scientific and practical conference ―Education and Scientific Progress‖ (April 24-26, 2026) / Publisher website: www.naukainfo.com. – Manchester, United Kingdom, 2026. - 218 p.

25 caused by the war, the state budget deficit has significantly increased due to the need to meet the ever-growing needs of a warring country. The study found that, in addition to the budget deficit, the reasons for the growth of public debt in Ukraine were: inflation and devaluation of the hryvnia, especially at the beginning of the war; a sharp decline to the lowest possible level of investment attractiveness; the need to constantly attract financial resources through loans to restore damaged or destroyed energy, social, critical infrastructure, industrial facilities, etc.; dependence on imported energy sources ( electricity, natural gas, petroleum products ); constant appeal to international financial organizations: the IMF, the World Bank and other institutions to obtain funds. Due to persistent instability, these factors led to the growth of public debt. The existence of a significant budget deficit, as shown by international experience and practice, always leads to greater attraction of additional funds to cover it and an increase in the volume of public debt [7, p.41]. In times of war, the government is forced to review established peacetime approaches to using mechanisms and instruments for mobilizing finances, ensuring the servicing and repayment of state obligations in order to overcome the challenges and risks that have arisen in the new, de facto, wartime reality. It is worth noting that during war, problems immediately arise with servicing the public debt and the inability to fill the revenue part of the state and local budgets to form an appropriate level of expenditures, which, in our opinion, is a characteristic feature of any country whose economy is engulfed in war. Our research showed that in 2024, the state and state-guaranteed debt amounted to UAH 6,980,964.9 million, which was almost 92.0% of GDP. According to the Ministry of Finance of Ukraine, as of December 31, 2025, the total state debt amounted to UAH 9,042,678.5 million, including: external debt - UAH 7,011,176.5 million and internal debt - UAH 2,031,502.0 million. That is, by the end of 2025, this figure is almost USD 200 billion or 100 percent of GDP [8]. According to forecasts of the International Monetary Fund (IMF), due to growing military needs, in 2026 the size of the state debt of Ukraine will increase to 132.0% of GDP, which increases the