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.

27 As a powerful tool for social development, fiscal policy ensures a balance between macro-financial stability, social justice, and economic efficiency. It determines the state's ability to achieve short- and long-term social development goals. For a modern state, in peacetime, the key priority is spending on social protection and social security, especially for vulnerable groups of the population, development/improvement of social infrastructure and investment in human capital. These features form the characteristics of the ―social budget‖ expenditures, which, as a rule, correspond to the social policy of the state and are aimed at improving social development. In fact, the composition and structure of budget expenditures is determined by the economic content and tasks facing the country at the current stage, and is an indicator of the state's socio-economic policy. Currently, in wartime conditions, significant amounts of finance are needed to properly finance the needs of the Armed Forces of Ukraine and the security sector in general, so it is important for the government to intensify measures to promote the formation of reliable mobilization reserves for the purchase of weapons and equipment, the relocation of domestic enterprises to safe regions, the provision of various types of assistance to the population, etc. The objective need of today, along with the growth of spending on the defense sector, in our opinion, is the need to increase social spending, in particular on: education, healthcare, social protection, including science for conducting fundamental and applied research. After all, it is well known that a healthy, educated and socially secure nation is capable of doubling the synergy for increasing GDP, increasing both the military and socio-economic potential of the country. In addition, the formation of favorable conditions for human development should be the basis for successful social development. Our extensive analysis shows that at the relevant stages of social development, the main components of the state's financial policy: monetary and budgetary, played a significant role in influencing the dynamics of social development. The specifics of