Proceedings of the International scientific and practical conference ―Modern Research and Education‖ (May 2-4, 2026) / Publisher website: www.naukainfo.com. – Warsaw, Poland, 2026. - 523 p.

36 However, as for the definition and assessment of stability, in our opinion, a number of significant factors are not taken into account, which can be factors of destabilization and increase its vulnerability, and they must be taken into account when assessing the state so that in the future the financial system is comprehensively researched, and accordingly reliable and has scientifically sound methodological support in overcoming shocks and other possible economic crises and threats. In our opinion, the stability of the financial system is, first of all, the reliable functioning of its integral mechanism, harmonious coexistence with the real sector of the economy, uninterrupted implementation of financial transactions, timely response to current and potential risks, other destabilizing factors, where its effective functioning is observed by maintaining an appropriate level of employment of the population, stability of the national currency, trust in financial and credit institutions, effective distribution and use of financial resources for the benefit of the country, stabilization of the socio-economic situation is ensured, the basis for economic growth, sustainable dynamics of social development is formed [6, p.85]. In our opinion, the stability of the country's financial system cannot be ensured if the participants in the budget process do not adhere to the basic principles of the budget system of Ukraine, namely: the efficiency and effectiveness of the use of budget funds. Inefficient management and use of budget funds is one of the risks of vulnerability of the financial system. After all, we are talking about billions of budget funds that do not create added value, do not bring the desired result, but on the contrary, cause harm and losses to the state. Under martial law, budget expenditures should be used rationally and effectively, primarily to protect the country from Russian invasion, assist victims, finance protected items, as well as maintain or restore important critical infrastructure facilities and priority areas of the country's socio-economic development in the event of destruction [7, p.95]. Even if we take into account that the effective distribution of budget funds will be ensured (which is extremely important), however, if the above-mentioned