Borderline Budgets: Analyzing Fiscal Responses to the Russian-Ukrainian War in Neighboring Countries
Type of Presentation
Paper
Location
University Library - D2401A
Start Date
4-18-2024 10:45 AM
End Date
4-18-2024 11:15 AM
Description of Program
This study explores the budgetary responses of five neighboring countries to the economic consequences of the Russian-Ukrainian war and the factors that shape the allocation of funds in various programmatic areas. Findings suggest that public funding decisions are influenced by economic impact, fiscal capacity, political stability, and international aid.
Abstract
The Russian-Ukrainian war has had a significant and long-lasting impact on the global economy. However, due to their proximity to the conflict zone, neighboring countries have been particularly affected by the conflict, experiencing an influx of refugees, declining trade activity, disruptions in energy supply, increasing energy prices, and inflation. This study investigates public budgeting in five countries that share borders with Ukraine: Poland, Slovakia, Hungary, Romania, and Moldova aiming to shed light on factors that influence budgetary responses to mitigate the consequences of the crisis. First, the study assesses the economic consequences of the war on the fiscal performance of neighboring countries since its beginning in February 2022, including public revenues. Additionally, the study examines whether this impact varied across the countries. Secondly, the study investigates the fiscal impact of the conflict on public spending in the neighboring countries. It focuses on the allocation of funds to health services, social assistance, national defense, public order, and economic development programs required to mitigate the consequences of the war. The study also examines whether the prioritization and allocation of spending for programmatic areas varied across the case countries. The study's findings suggest that differences in countries' fiscal responses to mitigate the consequences of the conflict are influenced by several factors. These include the conflict's impact on the country's economy, the government's fiscal capacity to deal with the economic crisis, the threat posed by the conflict to the neighboring country's political stability, and access to international aid.
Presentation File
wf_no
Borderline Budgets: Analyzing Fiscal Responses to the Russian-Ukrainian War in Neighboring Countries
University Library - D2401A
The Russian-Ukrainian war has had a significant and long-lasting impact on the global economy. However, due to their proximity to the conflict zone, neighboring countries have been particularly affected by the conflict, experiencing an influx of refugees, declining trade activity, disruptions in energy supply, increasing energy prices, and inflation. This study investigates public budgeting in five countries that share borders with Ukraine: Poland, Slovakia, Hungary, Romania, and Moldova aiming to shed light on factors that influence budgetary responses to mitigate the consequences of the crisis. First, the study assesses the economic consequences of the war on the fiscal performance of neighboring countries since its beginning in February 2022, including public revenues. Additionally, the study examines whether this impact varied across the countries. Secondly, the study investigates the fiscal impact of the conflict on public spending in the neighboring countries. It focuses on the allocation of funds to health services, social assistance, national defense, public order, and economic development programs required to mitigate the consequences of the war. The study also examines whether the prioritization and allocation of spending for programmatic areas varied across the case countries. The study's findings suggest that differences in countries' fiscal responses to mitigate the consequences of the conflict are influenced by several factors. These include the conflict's impact on the country's economy, the government's fiscal capacity to deal with the economic crisis, the threat posed by the conflict to the neighboring country's political stability, and access to international aid.