SUPPORT OF SMALL BUSINESS THROUGH THE BUDGET FUNDS

The problems of the small business development were identified and the reasons that they generate were justified. One of these is the insecurity of the local budgets expenditures that is the negative phenomenon, because the government and local authorities are unable to guarantee the necessary level of costs due to limited financial resources and lose the opportunities to increase expenditures on social and economic needs of communities in the territory of which the business entities, including small ones, carry out their economic activity. The problem of fiscal instability of the budgets due to low regional development must be addressed through the implementation of investment and innovation activities. Taking into account the importance of small business support as a key instrument for social and economic development of regions, we identified the need to implement a series of measures for successful and efficient operation of these entities. The ways of small business improvement through the budget were proposed, which has a positive effect to level of local revenues and significantly affects the performance of state and local governments and major functions of the socio-economic development of the country and the region. Taking into account the positive impact of innovation and to stimulate investments into small businesses and socio-economic development of regions in the country, the authorities in Ukraine, at the moment of regional distribution of national investments in fixed capital and foreign investment in the national economy, should analyze the potential of the areas. Successful implementation of these measures will contribute to the improvement of development, income generation, including small businesses in the region, the growth the gross regional product, and, thus, efficiently filling the budgets of regions and eliminating the existing gaps by transfers from other budgets. Important contribution to the development of small businesses by state and local government is providing financial, informational, advisory support to the economic entities. According to the legislation, the government may provide financial support in the form of transfers for the development of small businesses. It was emphasized that transition to budget management for programs development by means of the target method is the efficient means of small business support by the central authorities and local selfgovernments, it is the development and implementation of state and local programs through the budget.