Budgetary policy is one of the main components of state financial regulation of the country's economy. Based on the need to strengthen the efficiency of state financial management, the achievement of relevant economic and social indicators, budget performance is important, the main goal of which is the development and implementation of a balanced budget policy, including in the field of inter-budgetary relations, budget revenue generation, budget expenditure planning, budget deficit, service of the state debt aimed at ensuring the appropriate level of social development. The level of functioning of the state finance management system depends on the budget balance, the effectiveness of the budget mechanism, which must be improved and adapted to the main tasks of the country's economic and social development. In order to strengthen the influence of budget policy on social development, it is necessary to take measures aimed at increasing the level of budget balance, the efficiency of using budget funds, improving inter-budgetary relations, ensuring the quality implementation of budgets at all levels, and implementing effective state financial control. The formation of budget expenditures is an important component of the state's financial policy, which significantly affects social development. The main objective of the policy in the field of budget expenditures is to optimize and save their volume while simultaneously increasing the efficiency and effectiveness of the use of budget funds in order to ensure sufficient quality of public services. Planning of budget expenditures should be carried out in accordance with the stage of economic development, the level of the budget deficit in relation to the indicators of the state debt, the appropriateness of the ratio of current and capital expenditures of the budget. The expenditure part of the budget exerts a significant influence on the development of the economy and the level of social security of the population. The issue of effective distribution of limited budget resources is becoming important, especially in the conditions of martial law. The development of the system of budget planning and implementation, which is based on the principles of the program-target method, requires strengthening the focus of budget planning on final results, increasing the efficiency of the use of budget funds. Appropriate budget mechanisms should ensure budget balance and effective influence on socio-economic processes. In these conditions of economic development, it is expedient to determine the basic principles of the budgetary policy of social development, to strengthen the relationship between the achieved indicators of the socio-economic development of the country, to ensure national defense and the amount of budget funds used, to increase the level of effectiveness of budget programs, to improve the relevant budget tools and mechanisms in system of the institutional environment of society. It is important to improve approaches to the formation of budget policy in the system of the institutional environment of society, development of the main directions of budget perspective planning. The scientific novelty of the obtained results lies in the disclosure of the essence budget policy as a component of the system of state financial support for social development, based on the institutional principles of adaptive budget architecture, taking into account the appropriate level of stability, dynamic balance of the budget, based on the economic cycle and priorities of the socio-economic development of the country, the effectiveness of the activities of the main managers of budget funds, the state financial control and audit, which will contribute to increasing the effectiveness of the use of budget funds in conditions of limited state financial resources. Approaches to the formation of budget policy in the system of the institutional environment of society have been improved; regulations regarding the peculiarities of the formation and implementation of budget policy priorities in the conditions of economic transformations; approaches to strengthening the interrelationship of perspective budget planning with the priority areas of the country's socio-economic development. Provisions regarding increasing the effectiveness of the program-target method of budget expenditure planning were further developed; generalization and systematization of experience in the formation and implementation of budget policy in countries with developed and transformational economies, which will provide an opportunity to increase the efficiency of the budget process; approaches to the development of the main directions of budgetary policy, budgetary perspective planning, which will create appropriate conditions for the influence of the budgetary mechanism on the effectiveness of socio-economic transformations.
