The Role Of The State Budget In Strengthening National Financial Stability

Abstract

This paper examines the critical role of the state budget in ensuring and reinforcing national financial stability. Using a qualitative analysis of recent theoretical and empirical studies, as well as a review of fiscal practices in transition economies, the study highlights how budget formation, fiscal discipline, and effective allocation of public resources contribute to macroeconomic stability, social welfare, and sustainable development. The findings suggest that a well-structured and transparently managed state budget — combined with balanced revenues and expenditures — is a fundamental instrument for achieving financial resilience, reducing economic volatility, and supporting long-term growth. The paper concludes with policy recommendations for optimizing budgetary mechanisms to bolster national financial stability.