Proceedings of the International scientific and practical conference ―Toronto Congress of Advanced Research‖ (April 20-22, 2026) / Publisher website: www.naukainfo.com. – Toronto, Canada, 2026. - 174 p.

31 effective management of budget expenditures, which will allow, in wartime and post- war recovery, to significantly improve the system of public finances and guarantee long-term macro-financial stability. Keywords: state budget; local budgets; functions of the state; revenues; public debt; budget expenditures; public finances; martial law; financial resources. The country's budget system is one of the important regulators of socio- economic development, stimulating business activity, a tool for raising social standards, incomes and ensuring the growth of citizens' well-being. Each country determines the role of the budget system in the overall economic development model, taking into account its priority goals and strategic objectives. The quality and effectiveness of budget regulation depends on the economic model used, the importance of the budget system in general and the budget in particular, as well as scientific and methodological validity. The budget has always been and remains an important tool of the country's budgetary, financial, fiscal, socio-economic policy. For Ukraine, in peacetime, the state of development of the budget system and budget relations in general was characterized by the need for reforms to improve the budget expenditure management system in order to ensure the provision of public goods and services to the population in sufficient quantity and quality. This required the introduction of new methodological approaches to the effective use of budget expenditures in the implementation of budget policy in order to increase its effectiveness. In conditions of martial law, the role and importance of budget expenditures in solving the problems of a warring country does not decrease, but rather increases. After all, the country's defense expenditures determine the degree of resistance to the aggressor, the completeness of meeting the needs of the Armed Forces of Ukraine (hereinafter referred to as the AFU) in ammunition, modern combat equipment, drones, and other technological weapons. Both in peacetime and in martial law, the key task of the budget system is to increase its efficiency, including through transparency, accountability, promoting