OPTIMIZATION OF STATE EXPENDITURES IN THE CONTEXT OF ENSURING BUDGET SECURITY OF UKRAINE

Introduction. The modern stage of budgeting, in the conditions of martial law, requires improvement of the system of control over the spending of budget funds. Budget expenditures have a significant impact both on the development of related industries and the economy as a whole, and on the level of social development of the country. Taking this into account, the problem of effective distribution of limited budget resources in the areas of socio-economic development by ensuring the compliance of the level and structure of budget expenditures, taking into account the defined strategic priorities of the country's development, becomes of priority importance. Purpose. To analyze the functional classification of budget expenditures of Ukraine and to determine effective directions for their optimization in the context of increasing the level of budget security in conditions of uncertainty. Materials and Мethods. The materials of the study were the works of Ukrainian and foreign authors who conduct their scientific and practical research on budgeting, optimization of budget expenditures, budget security. The use of the systemstructural method contributed to the study of the budget expenditure structure of Ukraine for 10 years. The methods of summarizing, analyzing and synthesizing information are the basis of the study of directions for optimizing budget expenditures. The comparative legal method made it possible to analyze, compare and compare aspects of the transparency of the budget process in Ukraine and foreign countries. Results. The clear consequences of the crisis during the military aggression for the revenues and expenditures of the state budget are outlined. A functional analysis of the expenditures of the budget of Ukraine for 10 years was carried out and the tendency of an extremely limited budget and an increase in defense expenditures, as well as the introduction of special rules for spending funds, were revealed. The main features of the process of optimization of state budget expenditures during various crises are given. With the aim of budget regulation of expenses and provision of social needs of all strata of the population at the micro level in Ukraine, it is proposed to use the practice of inter-budgetary transfers. Recommended ways to improve the system of using interbudgetary transfers as a tool for equalizing the tax capacity of territorial communities and optimizing state budget expenditures, in particular: take into account international experience and implement the mechanism of inclusion of personal income tax to local ones; to include the entire volume of tax revenues in the general fund of local budgets of territorial communities; reduce the imbalance in the capabilities of different territories, ensuring that all citizens receive the same amount of services. The level of budget transparency is outlined as one of the tools for identifying expenditure management deficiencies and increasing budget security. In order to ensure the appropriate level of budget security in the draft budget, it is necessary to pay more attention to the detailed forecasting of the budget's revenue sources for at least two budget periods ahead. Prospects. In further research, it is proposed to focus attention on improving forecasting of budget expenditures for the long term.