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.

73 direction and/or failure to take into account certain components of the system negatively affect the final result. The study confirmed the change in priorities in the country's public finance management system, in particular, the increase in the volume of financing for the security and defense sector, which differs from peacetime conditions. In addition, it was found that: - the war affected the decentralization reform initiated in 2015 and the share of state budget expenditures in the overall structure of consolidated budget expenditures increased, while the share of local budgets decreased; - tax revenues decreased during the war, which accordingly affected the financing of state expenditures; - the volume of state budget expenditures on defense and security increased rapidly; - the budget system's dependence on international credit and non-repayable (grant) assistance increased; - payments for servicing and repaying the state debt increased rapidly. At the same time, an increase in the costs of refinancing and servicing public debt may lead to an increase in new borrowing by the general government sector and a deterioration in the state of public finances in the medium term. The role of the state budget of Ukraine in overcoming the challenges, risks, and threats of war has increased, which gives us reason to reasonably assert and further distinguish the state budget separately according to: economic, political, social and military significance. REFERENCES: 1. Радіонов, Ю. Д. (2025). Державні фінанси: особливості виконання функцій в умовах війни. Актуальні питання економічних наук , (12). URL: https://a- economics.com.ua/index.php/home/article/view/638, DOI: https://doi.org/10.5281/zenodo.15830798