Abstract

Problem statement and relevance. Modern economic processes have a significant impact on social relations. Traditional approaches to government regulation have exhausted themselves, leading to significant upheavals in socio-economic life. Therefore, there is a need for the state to take measures to stabilize the economy and its sustainable development. State administrations have considerable potential in regulating economic activity in this direction. Their functional content makes it possible to increase the efficiency of state regulation of economic processes. New approaches to managing economic processes are becoming more relevant. Scholars and government officials are increasingly debating this issue. Purpose and tasks of the article. The purpose of this article is to reveal the influence of public administrations on the functioning of the process of reproduction and to determine the potential of economic development in state regulation of a market economy. Exposition of basic material. Today, the question of the essence of the function of state administrations in the sphere of economic regulation is important. In order to determine the functions of state administrations in economic processes, it is necessary to determine, first, what is actually a function and second, to understand the functions of public administration and regulation in the economy. Only then can one focus on which of these functions are inherent in local state administrations. The main normative act that determines the place of state administrations in economic regulation is the Law of Ukraine «On Local State Administrations» of April 9, 1999. However, some researchers believe that this law does not clearly specify what and how state administrations in the economic sphere should regulate. The tasks of state administrations in the sphere of economy, fixed in the Law, do not reflect the reality that exists in reality, since their activity goes far beyond the provisions of the Law of Ukraine «On Local State Administrations». The state administrations do a great deal of work on infrastructure development in the region, industry, agriculture, transport and other sectors of the national economy. At the same time, this activity is not legally enshrined. In practice, there is a situation where the President and the Cabinet of Ministers place many complex tasks before state administrations, and it is extremely difficult for them to carry out their activities as a center of economic development of the region, due to lack of authority and appropriate legislative framework. Hence the many shortcomings in the activities of public administrations in the effective regulation of economic relations in the region. The tasks of local state administrations have formed based on the two components: -state regional policy in the economic sphere; - the functions that they should perform based on the economic policy of the state and the objective need to regulate the economic processes in the region as centers of the economic system. An analysis of the role and functions of public administrations in the sphere of economy shows that there are significant reserves for improving the efficiency of their activities in regulating economic relations. Conclusions.Thus, it is necessary to define clearly the economic and public administration functions of public administrations in the economic sphere. An important issue is the development of a mechanism for implementing these functions in a territorial context. It is important to define the boundaries of possible and necessary regulation of economic relations by public administrations. In addition, a prerequisite is a more specific consolidation of the powers of public administrations in the economic sphere and their clear regulatory regulation.

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