The Importance of Openness and Transparency in the Budget Process in the Defence and Security Sector of Ukraine

Igor Lyutiy, Yuliia Petlenko*, Nataliia Drozd

*Corresponding author for this work

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(Ukranian title: Важливість відкритості та прозорості бюджетного процесу в секторі оборони та безпеки україни)

The purpose of this paper is to describe and analyze the issues of openness and trans-parency of the budgeting process in the defense and security sector in Ukraine, which results in effective spending of budgets. After Russia started a full-scale war against Ukraine, the international community is providing Ukraine with numerous financial support packages and ammunition. There-fore, one of the most important issues is strengthening the democratic control over the budget process in the defense and security sector of Ukraine, taking into account the new principles of information openness and its classification as a state secret. Here, the need to develop standards for transparent budgeting and the introduction of an open indicative system for monitoring and evaluating the budget process in the defense and security sector is particularly relevant. The article provides an empirical description, uses data obtained from expert discussions and multidimensional evaluation approaches on openness and transparency of the budget process in the defense and security sector to enhance the effectiveness of mili-tary budget spending.The paper develops conceptual approaches to ensuring the efficient use of budgetary resources in the defense and security sector by generalizing the practical implementa-tion of the open and transparent budgeting principles, development of effective mech-anisms for budget oversight, and compliance with standardsof public accountability.The paper focuses on the need for the implementation of budget transparency stand-ards referring to the priorities of the Military Security Strategy of Ukraine with particular attention to the issues of openness and transparency of financial reporting at budgetary institutions. The study proves the prospects for the introduction of transparent budget-ing standards in the defense and security sector, which is a fundamentally new approach able to strengthen corruption prevention and, in combination with other hybrid defense tactics, the military provision.The study is performed under the project “Openness and transparency of budgeting in the defense and security sector of Ukraine”, supported by the Ministry of Education and Science of Ukraine.
Original languageEnglish
JournalFinancial and Credit Activity Problems of Theory and Practice
Issue number47
Pages (from-to)99-110
Number of pages12
Publication statusPublished - Dec 2022
Externally publishedYes


  • Budgeting
  • Openness
  • Transparency
  • Defence and security sector
  • War
  • Ukraine

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