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.

33 As an economic category, budget expenditures reflect the tasks and functions of the state, characterize state and local budgets, their interconnection, and the peculiarities of the distribution of budget funds to priority areas of the country's socio-economic development. The state, using budget expenditures through the budget system to perform its functions, does not always adhere to the principle of effective management and use of budget funds, which is accordingly reflected in the quantity and quality of public goods and services provided to the population. Nevertheless, with the help of budget expenditures, the state regulates socio-economic processes, pricing policy, influences the level of employment, stimulates demand, macroeconomic growth, etc. International experience shows that it is more expedient to redistribute budget expenditures between priority sectors of the economy, thereby implementing financial recovery of the real sector of the economy, creating favorable macroeconomic conditions for economic growth and increasing budget revenues at all levels. Budgetary expenditures are able to positively influence economic growth, financing progressive sectors of the economy, scientific developments, optimization of the structure of material reproduction, regulation of imbalances of socio-economic development. This determines the regulatory role of budgetary expenditures. In turn, their stimulating role is manifested in promoting the development of entrepreneurial activity, ensuring the dynamics of the investment process, human resources of individual sectors of the economy [3, p.12]. Effective management of budget expenditures is an important factor in budget regulation and concerns different conditions ( wartime, peacetime ) of the functioning of the economy. Although, in conditions of wartime, this issue is even more acute, since the risks of filling the budget and, accordingly, the formation of expenditure volumes increase. Such a state causes a certain uncertainty and instability, which is associated with unpredictable consequences. After all, the mechanism for managing revenues and expenditures of the State Budget of Ukraine, developed in peacetime, is actually ineffective in wartime, faced with new, existential challenges. Therefore,