FINANCIAL FACTORS OF SOCIAL POLICY IN UKRAINE

Abstract

The problem of financing of social policy in the state in the context of deep social transformations has been analyzed in the article. The authors consider the social policy of the state as a complex of state measures aimed to satisfaction of certain material needs and as the political doctrine of the country's economic development strategy. The essence of social policy as an activity of the state and other public institutions in the social sphere is considered, some trends of social policy, state and prospects of financing of social policy measures in Ukraine are analyzed, possible ways of overcoming the crisis phenomena in the social sphere are revealed. The financial factors of social policy of the state are determined on the basis of the Keynesian doctrine of formation of effective demand and fiscal policy, provides expenses from the budget on the solution of social problems. It was determined that social policy has become an integral part of the process of social production and is directed towards the achievement of social consensuses, search of new reference points in distribution of income between separate social groups. In the article it has been proved that the formation of effective demand in the economy is hampered by the low level of purchasing power in most households, and the high level of differentiation of consumption of the population has negative effect on structure and dynamics of production and does not contribute to its development. It is established that the production focused on a limited effective demand that cannot satisfy real needs, and reduction of consumption deepens a gap between the structure of production and the structure of the market with all the ensuing consequences. The necessity of the dynamic use of the productive and consumer possibilities of all segments of the population and the inadmissibility of reducing the consumption fund for increasing the accumulation fund is proved. Based on the analysis of the structure of monetary incomes of the population the role of social protection in the system of social reproduction is determined. It is suggested that further changes in income distribution should be directed towards achieving social consensus, searching for new benchmarks in income distribution among individual social groups of the population in order to establish economic and social interrelations which will increase the sustainability of the socio-economic system of society. The expediency of expanding the study of this problem with the consideration of institutional factors has been proved.