World experience shows that at all times the state plays an important role in socio-economic development.

One of the most important features of the effectively functioning market economy is that it is multidimensional based on the abundance of its forms of ownership, the optimism of private and public sectors, state regulation of the economy and market mechanisms of economy. In accordance with the essence of the market economy system, the demand of the society to meet the specific needs of the society in the competitive economy development and the rational use of limited resources plays a decisive role in the economic structure. At the same time, the state sector is a part of the mixed economy, which is fully controlled by the state and is a state-owned entity. The public sector of the economy includes, as a rule, education, health and social services, public transport, national and local government institutions and corporations. Above all, it is known that the market economy system requires public-private property to be privatized.

In the market economy, the intervention of the state in economy was also necessary. Simply, the scale, forms, means and directions of the intervention have evolved. It is well-known that in the market economy main economic functions of the state are conditioned by the system goals and nature of the socio-economic policy of the country in each particular case. In such a situation, the effectiveness of state regulation in economy depends on the extent to which they are complicated in economy, and to a great extent adequate to the contradictory processes.

These and other issues have been studied in the thesis, and a number of recommendations have been made for state regulation of the economy in the definition of the effective development strategy in the state sector.

Keywords: state sector of economy, effective development, state regulation of economy, national economy, market economy, macroeconomic regulation.