The article deals with the problems and ways to optimize the costs of the budget. The dynamics of budgetary performance indicates that the federal budget, especially in recent years, was heavily overloaded with expenses related to the economic function of the state. The consequence of this process was a significant budget deficit, which is managed, especially after the financial crisis in Russia has become much more difficult. By solving the problem of budget deficit is currently largely dependent switching to sustainable economic development, the problem of ensuring expanded reproduction and full provision by the state of its social and economic functions. Budget funding for all social sectors in full is not enough. To solve this problem, you must move from universal social protection of the population to ensure that targeted social neediest is also necessary to increase the effectiveness of social expenditures by industry by reducing non-production costs; reduce the network of public social institutions financed on the basis of the estimated expenditure of the order, but at the same time provide paid social services; to carry out regular monitoring of the efficiency and effectiveness of social expenditures.