Proceedings of the International scientific and practical conference ―The Hague Conference on Science and Public Policy‖ (May 8-10, 2026) / Publisher website: www.naukainfo.com. – The Hague, Netherlands, 2026. - 232 p.

48 The functions of the public finance management system are closely interrelated, their effectiveness depends on the clarity of regulatory and legal regulation, the effectiveness of public financial structures, the stable functioning of organizations and enterprises of various forms of ownership, and the stability of the country's financial and economic system. It is worth recognizing that despite the significant role of public finances in the development of the national economy, ensuring the stability of the financial system, they still do not stand out as a separate independent link in the economic sector of Ukraine. Their functions, as well as their constituent elements, are somewhat blurred and not clearly enough spelled out in legislative and other regulatory documents, which in a certain way affects their development. Thus, in the Law of Ukraine dated 21.09.2006 No. 185-V "On the Management of State Property" [2] there is also no clarity and no regulation of the management of the country's public finances. In our opinion, it is important to consolidate and regulate the development of the PFM system in budget legislation with a clear definition of functions, content, object and subject, and classification of elements, which will positively affect the quality of this system, significantly increase the level of its efficiency and effectiveness in solving complex socio-economic problems [3, p.48]. The efficiency of the public finance system has a positive impact on the balance of the country's financial system and overall macroeconomic stability. Russia's large-scale invasion of Ukraine (February 24, 2022) undermined the foundations of the sustainability of public finances. After all, due to the shutdown of Ukrainian enterprises and the loss of opportunities for foreign exchange earnings from economic activity, revenues fell sharply, which led to an increase in the budget deficit and the need to find additional sources of financing budget expenditures. It is worth noting that before the full-scale Russian invasion of Ukraine, the public finance system already had many problems that demonstrated its low efficiency, which affected its stability and effectiveness. For example, an insufficient regulatory framework for the implementation of reforms and other transformational changes, control of the economy in the context of economic transformations. As a