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.

49 result, various shadow schemes for the outflow of public finances from the intended goals arose, including through the ineffective distribution and use of budget funds. The war not only exacerbated chronic problems, but also brought new challenges associated with martial law. Improving any system is an extremely important task for maintaining its vital activity and effectively performing its assigned functions. The public finance management system is no exception, and therefore requires constant adjustment and improvement in order to improve the mechanism for forming and implementing the country's public financial policy, which will certainly have a positive impact on other related sectors of the national economy and accelerate the movement towards economic growth. Our analysis of the state of public finances showed that the war had a negative impact on their stability and balance, as it led to a decline in budget revenues and an increase in the deficit. After all, the circumstances that developed after February 24, 2022 required the state to take urgent measures, in particular, to regulate the issues of ensuring the provision of minimum public services and supporting business entities, including through anti-crisis regulation. It is worth noting that state institutions rallied around the looming threat. Thus, the Verkhovna Rada of Ukraine (parliament) adopted a number of laws that liberalized the tax system of Ukraine and reduced the fiscal burden on business. It is important to note here that, of course, the decisions taken were not aimed at increasing the volume of budget revenues, nor did they contain proper financial and economic justification, which affects the regulatory effect. Therefore, it was subsequently necessary to carefully review and reassess the management decisions made in order to prevent a decrease in the fiscal function of taxes and prevent possible fraudulent schemes to evade their collection, as well as to ensure the formation of a favorable business climate and the implementation of standards prescribed in EU directives. Despite the fact that the war is still ongoing, it is still necessary to predict the further development of the public finance management system. And, even if there are risks of significant destruction of infrastructure facilities, no one forbids planning or