THEORETICAL PROVISIONS OF IMPLEMENTATION OF STATE REGULATION OF SAVINGS OF HOUSEHOLDS

Abstract

Savings play an important role in the development of the financial system and economy of any country. These resources as a complex constitute an internal financial potential that can be used to form favorable conditions for the intensification of economic processes in the country. The role of public authorities in the transformation of the households’ savings into investment resourcestoday in all developed countries of the world is important, and the implementation of state regulation in this area is objectively necessary to ensure the effectiveness of this transformation in the long term.Within the article, the issue of deepening theoretical provisions of the implementation of state regulation of household savings is considered. Emphasizing the need for the state intervention in economic processes, which is an important condition for the national economy development, increasing socio-economic support of the population, in the article, the essence of this regulation is analyzed.Specifying the content of the category “state regulation of economy” made it possible to state the relationship between state authorities and local self-government and economic processes, determine the place of state regulation in such interaction. The obtained results are used in detailing the essence of state regulation of household savings, which is proposed to be considered as systematic and permanent influence of the households’ functioning to create conditions for the formation of temporarily free financial resources in these economic entities that they have the right to freely use them.The analysis of scientific approaches to the consideration of the state regulation system in general made it possible to distinguish its basic components as follows: methods, tools, levers, and principles (formation and implementation), the mechanism of functioning. Analysing the essence of state regulation of households’ savings, considering the specific features of the activities of these business entities, taking into account the possibilities of state authorities and local self-government bodies to influence their functioning, the specific functions of this regulation aredistinguished in the paper.