Proceedings of the International scientific and practical conference ―Science in the Modern World‖ (May 4-6, 2026) / Publisher website: www.naukainfo.com. – Barcelona, Spain, 2026. - 260 p.

11 mechanism introduced by the Government for determining losses and damage caused by russian aggression requires certain adjustments in order to take into account international experience and develop effective tools that will help in the future to ease the pressure on public finances to cover a significant amount of budget expenditures for the reconstruction of the country after the war. Attention is focused on the need to fully use a substantiated methodology as an evidentiary basis for legal proceedings and claims against russia to obtain reparations for the losses and harm caused. Keywords: budget funds; budget expenditures; public finances; functions; losses; planning; damage; martial law; socio-economic development of the country; reconstruction The development of an effective, efficient and fair system of public finances is extremely relevant, as it is an important component of ensuring the sustainable dynamics of the country's socio-economic development. An effective system of public finance management contributes to the high-quality implementation of reforms in almost any sector, solving a number of socio-economic problems, creating a favorable investment climate, stabilizing macroeconomic, financial, social, and environmental policies. The effective distribution and use of public finances form the basis of economic growth, guaranteed stability of the social protection system and provision for the population. Problems and imbalances in the public finance system pose threats to the national economy. And, the inappropriate and ineffective use of budget funds undermines the stability of the financial system, economic development, the national currency, the social protection system, contributes to the budget deficit, and the growth of public debt. Research into public finance problems requires in-depth, scientifically based, methodological developments. Analysis of the features of all the constituent elements that make up the system of its integral mechanism, identification of the causes of the budget deficit, public debt, inefficient use of budget funds, etc.