BUDGET AS SOURCE OF FINANCIAL SUPPORT FOR HUMAN POTENTIAL DEVELOPMENT IN UKRAINE

Purpose of research - a complex of theoretical and practical issues of the role of the budget as an important source of financial support of human potential development in Ukraine. Purpose of the paper - disclosure of the budget essence as source of financial support for human potential development and determination the practical aspects of implementing fiscal and social policy. Method and methodology of work - general scientific and special methods: system method, comparison, scientific abstraction, allowing to implement the conceptual integrity of the research. The results - it was revealed role of the budget as an instrument of financial support of human potential development in terms of reforming public finances. The estimation of expenses of state, local and consolidated budget of Ukraine was made. Directions of improving fiscal and social policy was proposed. Area of using results - theoretical and practical research results can be used in the process of improving system of state financial impact on human potential development in Ukraine. Conclusions. In Ukraine are in progress processes of ensuring reproduction and strengthening human potential in line of global trends. Means of state in terms of financial support of human potential development in a market economy (costs for health care, education, social security, etc.) depends both on the volume concentration of financial resources in the budget and efficiency of their using. Strengthening social focus of budget funds creates contradiction between the search for rational structure of public spending and the need for active development of human potential. A high level of human potential development is not possible in a poor country, so the only prerequisite of its strengthening is the implementation of the strategy of accelerated economic growth based on innovation. The focus of state budget policy for the implementation of this strategy involves saving the existing level of social support and even increase it subject to optimize the structure of social expenditures of state and local budgets and ensure their priority focus on human development.