Proceedings of the International scientific and practical conference “Science in the Modern World” (January 19-21, 2026) / Publisher website: www.naukainfo.com. - Cambridge, United Kingdom, 2026. - 203 p.

66 amounted to 80.8% of consolidated budget expenditures. In contrast, local budget expenditures during this period amounted to 19.2%. However, the share of state budget expenditures in the consolidated budget increased from 2021 to May 2025 by 12.2 percentage points, and the share of local budgets decreased by the same indicator. The above-mentioned changes in the composition and volume of consolidated budget expenditures are most likely a consequence of Russia's invasion of Ukraine and the need for the government to redirect budget expenditures within the framework of increasing the share of the state budget to address various types of state-wide functions related to the war, in particular: military, humanitarian, social and other needs of the warring country. Centralization of financial resources negatively affects regional development due to the inability of local budgets to solve pressing problems on the ground. Therefore, budgetary decentralization, which actually began in Ukraine before the war in 2015, was designed to solve this problem. The shift of the center of gravity to the regional side imposes additional obligations on local authorities and is reflected in increased interest in the problems of developing intergovernmental relations. The transfer of part of the powers and resources from the central to the local level allows, firstly, to adapt their decisions to local conditions and needs, and secondly, to more fully analyze and take into account the interests of a particular locality [3, р.81]. However, as we can see, the war has made its adjustments and the state is forced to centralize state finances in order to better confront the enemy and provide him with proper rebuff and defense of the country. As is known, the role and functions of public finances correspond to the specifics of the socio-economic policy implemented by the state at the appropriate stage of development. In fact, this corresponds to the general strategy of the state, the desire to satisfy the basic needs of society and, under appropriate circumstances, create favorable conditions for the growth of the well-being of its citizens, stimulate increased business activity, business development, the level of employment of the