The article deals with the dynamics of development of education and the dynamics of the structure of budget expenditures by educational sectors in Ukraine. The author makes a comparison between Ukraine and other countries by the index of education, level of public spending on education and the level of economic development. There is an economic-mathematical evaluation of the impact of the share of Ukraine's GDP allocated on education through the consolidated budget, on real GDP rate, human development index and dynamics of innovation in Ukraine's economy.

Keywords:knowledge based economy, budget expenditures on education, human development, economic dynamics, economic-mathematical studies

The article continues the theme of the author's previous publications on the study of education as a factor of economic growth. The author makes a comparison between Ukraine and other countries on the level of the economic effect of education and proves the necessity of reforming the educational system in Ukraine in order to resolve the urgent problems of improving its economic efficiency, and to focus on the needs of the modern economy, ensuring a wide and equitable access to modern knowledge.
Based on the analysis of legislative, regulatory and policy documents, the author reveals the guidelines and contents of educational reform in Ukraine, systematizes the purpose oriented macroeconomic indicators for monitoring, analyzes macroeconomic expectations and defines political and legal preconditions for successful implementation of the reforms.

Keywords: educational reform, human development, economic growth, macroeconomics