Abstract
<jats:p>The article explores the conceptual and practical foundations of forming the state budget policy within the framework of profound socio-economic transformations, which is particularly relevant given the imperatives of martial law and the subsequent challenges of post war recovery in Ukraine. In the current volatile environment budget policy transcends its traditional role as a mere financial ledger, evolving into a sophisticated instrument for macroeconomic stabilization and the activation of social development. The relevance of this study is rooted in the necessity to define strategic priorities for an adaptive fiscal framework capable of responding effectively to both external shocks and internal structural shifts. The analysis of Ukraine`s budgetary system through 2024-2025 characterizes the current state as one of managed deficit, highlighting the critical implementation of National Revenue Strategy through 2030. This strategy includes the digitalization of tax administration and the reform of excise policies, alongside temporary fiscal measures like increased military fees and taxes on windfall bank profits. A significant shift is observed in the financing structure, with a decreasing share of non-repayable grants from international partners in favor of concessional loans, which heightens the requirements for internal budgetary management efficiency. The study identifies the budget deficit-to-GDP ratio and the debt-to-GDP ratio as the primary indicators of fiscal predictability. The research proposes a transition toward a productive expenditures model focusing on sectors with high multiplicative effects such as energy, logistics and human capital. This approach aims to secure future tax revenues and enhance fiscal sovereignty, ensuring that the budget policy acts as a resilient institutional mechanism for long-term social and economic stability. Special attention is paid to the synchronization of budget and tax instruments to foster a transparent, client-oriented fiscal environment. Furthermore, the research explores the institutional principles of budget policy such as mobility, adaptability and availability of financial reserves as essential prerequisites for responding to internal and external shocks.</jats:p>