Proceedings of the International scientific and practical conference ―New York Global Science Conference 2026‖ (May 18-20, 2026) / Publisher website: www.naukainfo.com. – New York, USA, 2026. - 322 p.

45 - borrowing, including the issuance of government bonds and other forms of debt obligations; - reduction in budget expenditures on the social block ( education, medicine, social security of the population ). The Ukrainian government was forced to strike a balance in conditions of increased uncertainty. Meanwhile, budget planning plays an important role in ensuring effective budget policy, which, together with other interrelated components, in particular, budget execution, accounting, reporting, and control, improves the budget process. Even the budget deficit is inextricably linked to the effectiveness of budget policy, as it arises when budget expenditures exceed revenues in the corresponding budget period. The budget deficit can be an indicative indicator of the effectiveness of budget policy from the point of view of fiscal policy. A significant budget deficit indicates that funds are not used for their intended purpose or is a factor in ineffective management by managers. However, in conditions of war and increased uncertainty, it is a forced step. Instead, effective budget policy should be aimed at eliminating or minimizing the budget deficit while ensuring the sustainability of public finances. To what extent does the budget policy meet the priority goals of the government, based on this position, it is possible to assess its effectiveness. The budget deficit reflects the distribution of funds and the degree of achievement of the goals of the budget policy. In addition, the deficit affects financial and economic stability. A significant budget deficit can lead to increased tension in the sphere of public finances and the need for increased borrowing, high interest payments and potential risks, threats to macroeconomic stability. The main sources of financing for the state budget since the beginning of the full-scale war have been military bonds, loans from international financial organizations, as well as bilateral loans and grants. An effective budget policy should keep the budget deficit within the limits set by the Budget Code of Ukraine, taking into account the economic situation and debt sustainability.