Budgetary Regulation of Human Development

Economic Annals-ХХI: Volume 148, Issue 1-2(2), Pages: 31-34

Citation information:
Kozarezenko, L. (2015). Budgetary Regulation of Human Development. Economic Annals-XXI, 1-2(2), 31-34. https://ea21journal.world/index.php/ea-v148-08/

Liudmyla Kozarezenko
PhD (Economics),
Associate Professor,
Academy of Financial Management
38-44 Dehtiarіvska Str., Kyiv, 04119, Ukraine
ljudmila.kozarezenko@gmail.com

Budgetary Regulation of Human Development

Abstract. Introduction. The state and local budgets expenses directly influence the human potential development. The state provides appropriate functioning of the citizens with the help of financial streams, directed to the sphere of education, health care, development of infrastructure. Accordingly, the budget expenses promote the material, spiritual and cultural development of a person. Purpose. The article is aimed to conduct a research on the influence of social budget expenses on the development of human potential. Results. The outcomes show very low efficiency of social budget expenses. The results of our calculations indicate that at the researched period the average increase of budget expenses on education by 1 hrn led to the increase of gross regional income by 0.71 hrn, health care by 0.86 hrn, social defense and social program security by 0.14 hrn, municipal services by 0.64 hrn, transport and communication by 1.9 hrn. The expenses on physical training and sports have opposite effect on the dynamics of GRI, and the exact increase of these expenses by 1 hrn leads to the decrease of GRI by 5.2 hrn. Conclusion. In the course of economic instability and high level of social tension, the expenses of the state should be optimized to increase the level of their efficiency. This could be achieved by the usage of the social expenses redistribution mechanism in favor of infrastructure and human potential development.

Keywords: Human Potential; Budget Regulation; Social Spending Budget; Optimization; Efficiency; Economic Growth

JEL Classification: Н50; Н61; О15

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Received 10.12.2014