AN ANALYSIS OF APPROACHES TO GDP DISTRIBUTION THROUGH PUBLIC SECTOR IN UKRAINE AND THE EU COUNTRIES

Urgency of the research. The true is that government has to become an arbiter of economic and financial relations and to achieve a balance between social welfare and economic advance. In order to succeed it should establish the most transparent, clear and fair rules of GDP distribution and follow them. The size of public sector must be enough to satisfy basic social needs of citizens.Target setting. There is no agreement among politicians and scholars about the sum of gross domestic product that should be redistributed by government. Therefore, every country determines the optimal size of the public sector independently.Actual scientific researches and issues analysis. Many foreign economists investigated problems of public finance. Among them are: T. Lindh, G. Olson, E. Atkinson, J. Slemrod, W. Corpi, A. Lindbek, A. Afonso, L. Shukneht.Among local scientists who study similar questions we can notice: T. Koliada, I. Lunina, T. Chernychko, D. Serebrianskii.Uninvestigated parts of general matters defining. For the lack of a common approach to GDP redistribution through the public sector, it is important to systematize and generalize of world experience in solving such problem.The research objective. The aim of this paper is to carry out a comparative analysis of approaches to GDP distribution through public sector in Ukraine and the European Union.The statement of basic materials. Welfare state models are described in the article. It appears that the level of GDP redistribution in Ukraine is close to European average. Structure of budget expenditures in Ukraine and in the EU is analyzed. It is proved the level of economic growth doesn’t depend on the size of public sector; it depends on operational efficiency of state authorities. Conclusions. This article provides a comparative analysis of approaches to GDP distribution through public sector in Ukraine and the European Union.