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.

46 As the results of the study show, in conditions of war and increased uncertainty, the budget deficit is the main factor influencing the growth of public debt, as well as the effectiveness of budgetary policy. The main challenges are also high dependence on imports of electricity and other energy sources, reduction of labor resources due to forced emigration of the population, as well as expansion of the borders of the territories occupied by Russia in Ukraine. Of course, in these conditions, financial security risks increase, and the negative impact on the country's budgetary system, which complicates budgetary planning in the medium term. Typically, in peacetime, there is a desire to increase budget revenues by expanding fiscal space and the tax base. However, in war-induced uncertainty, when economic growth slows, such fiscal policy can lead to an imbalance in budget revenues and expenditures, making it difficult to keep the budget deficit within the legally defined limits. The need for a balanced budget income and expenditure leads to the state borrowing and the growth of public debt. On this subject, there are different opinions of scientists: from denial to the use of credit instruments to cover the budget deficit, stabilize the financial system and the national economy as a whole. It is worth noting that modern scientific concepts are based on new approaches, in particular, public finances are aimed at stabilizing macroeconomic equilibrium through budgetary regulation of the economy. That is, the budget deficit is acceptable and can be an effective tool for economic regulation, but requires constant monitoring and management. At the same time, the identified priorities of public debt policy must be scientifically sound, and public borrowing must be directed at implementing priority areas of social development. Maintaining the sustainable dynamics of Ukraine's socio-economic development and concentrating budget resources on solving priority, priority tasks require a balanced approach to planning and implementing all levels of the budget. Curbing the trends of increasing public debt and keeping it within the limits of fiscal rules. Accumulation of debt obligations, decline in production, GDP, decline in social standards, unemployment rate, economic cyclicality, depreciation of the national