Abstract
The problem addressed in this paper namely is the government expenditure effect on welfare of society. The object of research is government expenditure effect on welfare of society, whereas the aim of the paper is to analyse government expenditure effect on welfare of society in the theoretical aspect. The research deals with the analysis of theoretical interpretations of the phenomenon of welfare of society, expands the concept of welfare of society, comparison of the methods applied in practice for assessment of the level of welfare of society, and provides the summary of the theoretical link between welfare of society and government expenditure based on the previous research works in this field.