BUDGETARY FINANCING OF THE CULTURAL SPHERE IN THE SYSTEM OF SOCIAL EXPENDITURES OF UKRAINE

Abstract

The article examines the state budget financing of the cultural sector in Ukraine under martial law, emphasizing its crucial role in forming national identity, social cohesion, and humanitarian capacity. The authors emphasise the significance of culture as a strategic tool for enhancing societal resilience, preserving cultural heritage, and maintaining psychological stability during times of crisis. The study analyzes the changes in public cultural expenditure from 2021 to 2025, noting fluctuations due to changing budget priorities amid the ongoing war. It reveals a centralization of funding, with over 80% allocated to the central apparatus, while specialized agencies and regional institutions remain underfunded. Using a combination of legislative review, empirical budget data, and international comparisons, the article identifies systemic weaknesses in cultural finance governance: insufficient transparency, an inconsistent legal framework, fragmented reporting, and a lack of performance-oriented planning. The authors also critique the limited use of international best practices and the absence of unified performance metrics adapted to the Ukrainian context. The study highlights the critical need for decentralization of budgetary powers, integration of local communities in priority setting, and stronger interinstitutional coordination. Among proposed solutions are the development of comprehensive performance indicators (KPIs), introduction of a unified digital monitoring system, the diversification of funding sources (including incentives for private investment), and stabilization of the regulatory framework. Particular attention is paid to aligning Ukraine’s cultural policy with European standards, ensuring cultural sustainability, and fostering innovation in the creative industries. The research argues that culture should be perceived not merely as a cost category but as a multiplier of economic and social value. In the long term, strengthening the cultural sector’s financial infrastructure will contribute to post-war recovery, democratic development, and the resilience of Ukrainian society. By adopting a strategic, evidence-based approach to cultural finance, Ukraine can transform its cultural sector into a key pillar of national renewal and global integration.