PUBLIC FINANCE MANAGEMENT

KYRYLENKO Olha ¹, TULAI Oksana

¹West Ukrainian National University
OrcID ID : https://orcid.org/0000-0002-5504-5519

State finances and human development: correlation dialectics

Human potential development becomes as the basic term for progress of a state. The human factor influences deeply on all social processes and it becomes a determinative cause in order to choose a strategy for further development. At the same time many social and economic problems need interference of a state which impulsive force is state finances. Thus the main point of the research is the idea of the correlation and interaction between state finances and human development. The aim of the article is to ground the formation necessity of a state finances effective system according to human development strategic guidelines. In order to reach the target the work discusses the role of a state as a social institute that is responsible for all social interests which can be realized with the help of budget funds. The article investigates essential characteristics of state finances as well as presents the prospects of state finances functioning within human development using. Furthermore, the article states that the finances functioning in modern conditions demands theoretical approaches ’ modernization as for their origin in accordance with foreign scientific research works on finance in terms of social welfare and social choice conceptions. Special attention is paid to social function of a state as well as it is determined that the effectiveness of social investments into human potential reproduction depends directly on financial possibilities of the state. The results of the research determine different aspects of state finances and human development correlation. The article presents strategic ways of state finances functioning in accordance with conceptual principles of human development.

Keywords: state finances, human development, social welfare, social state

JEL: H40, H41, H50, Q15

Kyrylenko O. . State finances and human development: correlation dialectics / O. . Kyrylenko, O. TULAI // Фінанси України. - 2014. - № 10. - C. 42-54.