Proceedings of the International scientific and practical conference ―Cambridge Science and Education Conference‖ (May 15-17, 2026) / Publisher website: www.naukainfo.com. - Cambridge, United Kingdom, 2026. - 429 p.

26 social development and sustainable dynamics of economic growth, social and fiscal functions. The possibilities of balancing between filling the revenues of local budgets and the state budget, as well as implementing a policy to revive business activity by optimizing the tax system, solving a complex of social problems and promoting an increase in the level and quality of life of citizens. The state's financial policy plays a system-forming role in implementing social development tasks, because it is through it that the state accumulates, distributes, and redistributes financial resources to achieve strategic goals and objectives. Financial policy determines the parameters of taxation, government spending and debt financing, which affects the investment climate, aggregate demand, and entrepreneurship development. Through constraining or stimulating mechanisms, the state can stabilize or accelerate economic development. Through the budget system ( transfers, social spending, taxes ), the state smooths out inequality, finances social protection of the population, education, and healthcare. This makes it possible to increase social stability and improve the quality of life of citizens. In times of war, budget expenditures grow faster than budget revenues, which increases the risks to financial stability. Therefore, in such a situation, the main task of the authorities is not to disperse financial resources, but, on the contrary, to focus them on important, priority areas of ensuring the country's defense capability, humanitarian and social programs to support temporarily displaced persons, and other priority measures [3, р.30]. The state's financial policy is focused on maintaining the sustainability of public debt, controlling inflation, budget deficit, and also builds confidence in public finances and the country's financial system in general. Through financial policy, the state ensures law and order, the functioning of the judicial branch of government, builds infrastructure facilities, and protects the country, and this is clearly seen in the example of the current russian-Ukrainian war. Thus, the state, through the instrument of financial policy, responds to modern challenges, implements anti-crisis policies, influences the efficiency of the public administration system, investment attractiveness, and ensures the country's recovery.