Annotation

In the current economic and geopolitical conditions, scientific understanding of the legal regulation of budget expenditures is particularly relevant, as the budget rule is changing due to increased spending on national defense and plans to reduce other federal budget expenditures. The study used both general scientific and specific scientific methods of cognition, including dialectical, systemic, historical-legal, logical, synthesis, formal-legal, and comparative-legal methods. The study concludes that: 1) the execution of the federal budget in recent years has been taking place in difficult economic conditions, associated with a decrease in budget revenues and an increase in its expenses; 2) due to the increase in budget expenditures on national defense, they begin to talk about the so-called "military budget"6 which is not so, since there is only a significant increase in the expenditure part of the budget for spending on this function of the state; 3) a significant increase in the federal budget deficit in 2026 leads to the need to reduce budget expenditures by the end of the fiscal year, which may indicate the introduction of a budget sequestration mechanism if such a reduction is proportional throughout the fiscal year and significant in volume. The scientific and practical significance of the study lies in the fact that it allows for a critical analysis of existing theoretical concepts related to budget balance, budget deficits, and the use of budget sequestration mechanisms. Additionally, the study contributes to a theoretical understanding of practical issues related to reducing federal budget expenditures and the development of various materials aimed at improving the legal regulation of state budget policy in challenging economic conditions