In the process of European integration, it is necessary to implement economic reforms to ensure effective management of state finances. Changes in budgetary relations and the allocation of budget monetary resources are observed in connection with the process of decentralisation and transformation processes in the budgetary system. The aim of this article is to establish the significance of financing budget managers, even under resource constraints. The study focuses on the process of financing budget managers. The research methods employed include analysis, systemic-structural, comparative-legal, and dialectical methods. The results indicate that the current state and societal development necessitate the establishment of a strong and effective state economy. The financing of budget managers under resource constraints is a pertinent issue. Recent events in the country highlight that local budgets encounter various problems and inconsistencies, mainly due to limited financial resources, unclear expenditure powers between different levels of the budgetary system, inefficient spending models, and low investment capacity. Planning and executing local budgets' expenditure is a crucial aspect of budget policy that determines the effectiveness of local self-government bodies in fulfilling their functions and powers. Financial constraints of the state are especially significant in relation to the competence level of participants in the budget process, the ability to allocate budget funds rationally and in line with the priorities of budget policy, and the need to achieve maximum effect with minimal costs for socio-economic development. Proper use of local budgets requires evaluating financial procedures, monitoring the fulfilment of budgetary powers, assessing expected results, and accurately defining needs, among other factors. To address financial constraints, it is necessary to review and adjust budget expenditures and regulate the powers of local authorities regarding expenditure. Increasing spending by local budgets to complete their own responsibilities will enhance the investment aspect of local self-government budgets.