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.

37 form the appropriate amount of budget expenditures, perform state functions efficiently, solve pressing socio-economic problems, and effectively operate the budget mechanism. In times of war, the government is forced to review established peacetime approaches to using mechanisms and instruments for mobilizing finances, ensuring the servicing and repayment of state obligations in order to overcome the challenges and risks that have arisen in the new military reality. It is worth noting that during war, problems immediately arise with servicing the state debt and the inability to fill the revenue part of the state and local budgets to form an appropriate level of expenditures, which, in our opinion, is a characteristic feature of any country whose economy is engulfed in war. The limited budget expenditures often lead to the establishment of a limit on the expenditures of the state and local budgets, which are authorized to carry out budget planning to finance multi- vector budget programs. In the context of the continuation of the war, it is necessary to continue to increase the volume of budget expenditures to strengthen the military potential of the Armed Forces of Ukraine, territorial defense (TD), the formation of a powerful mobilization reserve of the army, naval forces to form appropriate military resources and prerequisites for the liberation of all occupied territories from the invaders and the establishment of a just peace in Ukraine. That is, military needs will continue to remain one of the important priorities of budget policy. As a significant instrument for regulating the national economic system, budget expenditures as a component of budget policy should be based on a long-term program of socio-economic development of Ukraine, which provides for the reconstruction of the country taking into account the financial and economic damages and losses incurred. Of course, it is impossible to rebuild the country with budget funds, that is, taking into account the budget potential, since the available financial space of the country of all types of budgets will not cover the needs that are necessary for the restoration of the destroyed. Therefore, in this context, the assistance of the