Fiscal instruments for supporting the financial security of agricultural enterprises in the face of global challenges

The aim of this study was to assess the role of fiscal instruments in maintaining the financial security of Ukraine’s agricultural enterprises in the context of military and global challenges. The research methodology was based on the application of systemic, institutional-normative, functional-analytical and statistical methods, which made it possible to analyse tax incentives, budgetary support, preferential lending, as well as the impact of inflation and monetary policy on the liquidity and solvency of agricultural enterprises. A summary of the results of the comprehensive analysis showed that the introduction of a minimum tax liability averaging around 1,400 UAH/ha was associated with increased transparency in land use, whilst simultaneously increasing the tax burden on farms with low margins. The differentiation of value-added tax rates (20%, 14% and 0%), combined with wartime tax relief, according to secondary sources, helped to reduce the cash flow gaps of individual enterprises by approximately 20-30%. Direct budgetary support in 2022-2025, estimated at between UAH 4 and 5 billion annually, as well as preferential lending, which exceeded UAH 104 billion in 2024, are seen as factors reducing debt servicing costs by approximately 15-20%. At the same time, the share of agricultural enterprises with insufficient absolute liquidity reached 74% in 2024. Peak inflation of 26.6% in 2022 and the National Bank of Ukraine’s increase of the discount rate to 25% significantly constrained the agricultural sector’s investment capacity. The directions for adapting fiscal mechanisms included the digitalisation of tax and budget administration, regional differentiation of tax and budgetary incentives, integration with European financial programmes, and the combination of fiscal, credit and insurance instruments to enhance the financial security of the agricultural sector. The practical significance of the study lies in the possibility of its results being used by public authorities to improve fiscal policy and by agricultural enterprises to enhance liquidity and financial stability in the face of wartime challenges