annexation of Crimea, and during 2013 - 2016 it increased by 113.2 billion UAH or by
78% (from 145.1 billion UAH to 258.3 billion UAH respectively). During 2013-2015
there was downward trend of social spending share in the structure of the state budget
expenditures. In 2016, where share of expenditures increased by 5.6% compared to the
previous year. However, expenditures increasing was due to transfers to the pension
fund and to finance the program of housing subsidies for public utilities for most of the
population during heating season, which indicates low population living standard.
Consolidated budget outlay on health care, education, spiritual and physical
development, which are expenditures on human development, tended to decrease over
the study period. In 2017, share of any of these items of expenditure did not reach the
2013 level.
That is, if in 2014 there was a outlay dynamic significant decrease (Table 1), then
in 2015-2017 the situation seems to be stabilizing. But taking into account impact of
inflation, Consolidated Budget expenditures dynamics will change significantly (Table
2).
Table 2 Expenditures dynamics of Consolidated Budget of Ukraine
for 2011-2017 considering deflators indexes (in% to the previous year)
Indicators
2011
2012
2013
2014
2015
2016
2017
Expenditures of Consolidated
Budget of Ukraine
96.6
109.4
98.5
89.2
93.6
105.0
114.2
Including
Healthcare
95.8
110. 6
101.0
80.1
89.4
90.7
122.6
Education
94.7
109.1
99.6
81.9
82.1
96.8
123.9
Spiritual and physical
development
Social care and social security
88.4
110.1
111.0
82.1
92.0
125.1
99.8
Source: Calculated by the author according to [2; 3; 4; 10; 11]
The data in Table 2 indicates that expenditures increase occurred under the
influence of significant inflation rates. The large volumes of financial resources that
the state accumulates in a centralized fund - the budget and social purpose, and social
responsibility of the state to society require a solution to the urgent issue of budget
funds efficiency increasing.
To realize the social function, the state must build a fair and sufficient tax system,
as an instrument of tax policy, which forms the most important part of budget revenues
- taxes. Depending on the economic cycle, budget policy, accumulating financial
resources, can act as a powerful tool for social development, as evidenced by the
dynamics of revenues of the Consolidated Budget of Ukraine for 2014-2017 and
includes the dynamics of tax and non-tax revenues as the largest sources of budget
resources (Table 3).
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