THE ROLE OF THE STATE BUDGET SYSTEM IN ENSURING SUSTAINABLE ECONOMIC DEVELOPMENT

The paper is devoted to analyzing the state budget system as the major tool to provide sustainable economic development. In this context of processes of globalization and permanent alterations in markets at the global level countries, the challenges of providing macroeconomic stability, social parity, and eco-sustainability appear relatively more and more stringent. It Is under these conditions that fiscal policy has to be treated as one of the most significant instruments by which to realize national strategies aimed at sustainable development which must combine economic, social, and personal ecologysthrough economic, social, and environmental aspects. In this paper, the author made a theoretical and practical study of the state budget system functioning as an essential stimulator of economic growth, infrastructure development, and job creation organized in a national economy. Much attention is paid to the estimation of the effectiveness of budget resources channeled to finance infrastructural projects, social initiatives, and environmental programs since they belong to the key ones attaining sustainable development on the level of a country. It dwells with identifying the major factors impeding effective funding usage in modern economic conditions, that is, limited financial capacity corruption bureaucratic red tape and inefficient leading to unjustified expenses of budget funds. With this limitation, the paper offers specific ways across all enhancement challenges and recommendations on optimization of fiscal policies that guarantee sustainable economic development. It also speaks on the latest works by domestic and foreign authors who study the effectiveness of fiscal policy in the sustainable development context. A firm emphasis is placed on investment in innovation technologies, ‘greening’ the economy, implementing social programs related to betterment of life quality, and funding support for the initiative for the environment and quality of life. The paper also aims at discussing those challenges which are common for the transition economies’ countries, with special attention to Ukraine, in particular, where the structural problems of managing budgetary resources and ineffective systems of control also take place. The paper underlines the importance of a unified fiscal approach in economic and social measures for sustainable development. The results of this study can be further articulated in scientific developments and applied to convey sound proposals regarding the improvement of the budget system in Ukraine and other transition economies. It will also prove useful in countries where sustainable development and effective public financial management are underlined priorities.