Economics and Business Management

Financial support of territorial communities under martial law: Challenges and prospects for the agricultural sector

Oleh Nehoda
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Abstract

The aim of the article was to identify transformations of financial resources of territorial communities during martial law and determine the role of the agricultural sector in restoring the financial capacity. The methodology was based on the analysis of statistical indicators of local budget revenues of Ukraine in 2022-2024, structural and functional analysis of the role of the agricultural sector and forecast modelling of the restoration of the tax base in 2025-2030. The agricultural sector, which provides more than 30% of rural community budgets, suffered losses of about USD 59.8 billion. due to the destruction of infrastructure, mining of more than a quarter of land and a reduction in exports. The volume of international grant support from the World Bank, the Food and Agriculture Organization of the United Nations, the International Fund for Agricultural Development and the European Union increased from USD 385 million in 2022 to USD 650 million in 2024, which confirmed the importance of foreign aid. Forecast calculations showed that in 2025-2027, tax revenues from the agricultural sector will increase from UAH 54.9 billion to UAH 67.9 billion, while the annual needs for financing its restoration in 2025-2030 will remain at the level of USD 17-18 billion. with a reorientation to the modernisation of equipment and support for farmers. The combination of state, municipal, and international support mechanisms creates the basis for restoring the financial capacity of communities, and Ukraine’s integration into the European market opens up new opportunities for strengthening the tax base. The practical significance of the study lies in the formulation of recommendations for the development of local agricultural funds, microcredit and preferential lending programmes. The results can be used by local governments, state institutions and international donors to develop strategies for the financial sustainability of territorial communities

Keywords

budget; revenues; grants; subventions; food security; forecast modelling

Suggested citation
Nehoda, O. (2026). Financial support of territorial communities under martial law: Challenges and prospects for the agricultural sector. Economics and Business Management, 17(2), 110-129. https://doi.org/10.31548/economics/2.2026.110
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