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Problems and Prospects of the Public Financing of Social Services in Light of the Ongoing Reforms in Ukraine
Zherеbylo І. V., Koval V. M.

Zherеbylo, Іryna V., and Koval, Vasyl M. (2020) “Problems and Prospects of the Public Financing of Social Services in Light of the Ongoing Reforms in Ukraine.” Business Inform 3:366–372.
https://doi.org/10.32983/2222-4459-2020-3-366-372

Section: Finance, Money Circulation and Credit

UDC 3336.14:314.17:364(477)

Abstract:
The article covers the problems of public financing of social services in Ukraine. The peculiarities of financing the social sphere before and after the beginning of sectoral reforms are identified. Regionally, expenditures of local budgets for social protection and social security are analyzed. An increase in the regional asymmetries both for the main recipients of social allowances, privileges and services, and for the allocation of the dedicated budget resources is noted. It is displayed that the growth of social expenditures does not correspond to the economy’s capabilities, and their nominal increase in volumes does not always mean an improvement in the quality of social services for the population. It is proved that this fact points to the need to take into account regional specifics in the formation and implementation of social policy. Among other problems of public financing of social services as a result of the study are determined the following: imperfect mechanisms for financing social benefits; inefficient use of budgetary means directed to this sphere; an non-rational network of social services agencies. The directions of modernization of public financing of social services are defined. Among the measures that could improve these processes are: legislative harmonization of the distribution of powers and responsibilities in relation to the public social guarantees; creating competitive positions for non-governmental organizations in the social services market and introducing efficient financial support mechanisms for community initiatives in terms of provision of social services at the local level; transition from financing for institutions to financing for social services; defining a consistent list of basic social services and the number of people to whom they are covered.

Keywords: social protection, social security, social service, public finances, financing.

Fig.: 2. Tabl.: 2. Bibl.: 8.

Zherеbylo Іryna V. – Candidate of Sciences (Philosophy), Associate Professor, Director, Lviv Educational-Scientific Institute of the University of Banking (61 Viacheslava Chornovola Str., Lvіv, 79019, Ukraine)
Email: zherebі[email protected]
Koval Vasyl M. – Postgraduate Student, University of Banking (1 Andrіivska Str., Kyiv, 04070, Ukraine)
Email: [email protected]

List of references in article

Stepanova, O. V. “Finansuvannia sotsialnoho zakhystu v umovakh detsentralizatsii: zarubizhnyi dosvid ta natsionalni realii“ [Financing of Social Protection under Decentralization: Foreign Experience and National Realities]. Investytsii: praktyka ta dosvid. 2016. http://www.investplan.com.ua/pdf/22_2016/16.pdf
Kravchenko, M. “Mekhanizmy detsentralizatsii sotsialnykh posluh v Ukraini“ [Mechanisms of Decentralization of Social Services in Ukraine]. Demokratychne vriaduvannia. 2014. http://www.lvivacademy.com/vidavnitstvo_1/visnyk14/fail/kravchenko.pdf
Pihul, N., Liuta, O., and Boiko, A. “Finansove zabezpechennia sotsialnoi sfery v Ukraini“ [Financial Provision for the Social Sphere in Ukraine]. Visnyk Natsionalnoho banku Ukrainy, no. 1 (2015): 30-35.
Ezcurra, R., and Rodriguez-Pose, A. “Decentralization of Social Protection Expenditure and Economic Growth in the OECD“. Publius. The Journal of Federalism, vol. 41, no. 1 (2011): 146-157. DOI: https://doi.org/10.1093/publius/pjp042
“Ofitsiini dani pro vykonannia mistsevykh biudzhetiv“ [Official Data on the Implementation of Local Budgets]. Derzhavna kaznacheiska sluzhba Ukrainy. https://www.treasury.gov.ua/ua/
“Sotsialnyi zakhyst naselennia Ukrainy : statystychnyi zbirnyk“ [Social Protection of the Population of Ukraine: Statistical Collection]. Kyiv : Derzhavna sluzhba statystyky Ukrainy, 2018. http://www.ukrstat.gov.ua/druk/publicat/kat_u/2018/zb/07/zb_szn_2017.pdf
“Sotsialnyi zvit za 2015 rik“ [Social Report for 2015]. Ministerstvo sotsialnoi polityky Ukrainy. https://docs.google.com/viewer?embedded=true&url=http://www.msp.gov.ua/files/zvitu/2015.doc
“Reformuvannia systemy upravlinnia u sferi sotsialnoi polityky v ramkakh detsentralizatsii vlady ta reformy mistsevoho samovriaduvannia“ [Reforming the Management System in the Field of Social Policy in the Framework of Decentralization of Power and Reform of Local Self-government]. Ministerstvo sotsialnoi polityky Ukrainy. http://www.zoda.gov.ua/images/article/original/000052/52486/reform%1Esys%1Eupr.pdf

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