SPECIFIC ASPECTS OF THE STATE FINANCING OF THE SOCIAL SPHERE IN UKRAINE

Abstract

The prerequisites and principle of the formation and development of the social sphere in Ukraine have been studied. It was pointed out that despite the multilevel and multichannel nature of the social infrastructure financing, the state and local budgets are the main source of the financial resources that ensure the social sphere functioning and development. It was specified that the budget expenditures for financing the social sphere are versatile and have both state and local financing source and differ according to their functional, departmental and target designation. This factor complicates the social sphere financing system, decreases the level of coordination between individual institutional components and levels, and increases the costs of maintaining and management of the social sphere institutions. It is clarified that the priorities of the state policy and their financing depend on the current financial possibilities. The most problematic aspect of the social sphere financing is still the system of the inter-budgetary transfers. The important directions for improving efficiency of the social sphere financial support are: harsher punishment for the non-purpose use of the funds; optimization of the authority pertaining to the distribution of expenditures between authorities at all levels; involvement of the non-governmental organizations in provision of social services with a view of improving their quality, etc. The general conclusion is that it is expedient to set up conditions for integrating all kinds of social support so as to make a unified complex system; adhere to the program management method of budgetary planning and social sphere financing; ensure transition from the model of financing institutions to the model of service financing; diversify the social sphere sources of financing; implement the practices of social service procurement and mechanisms of the public private partnership; extend autonomy of the local self-government so as to provide social services in accordance with the principles of decentralization of funding; and facilitate the development of the social services market using the legal and economic tools, etc. Provided the indicated activities are adhered to, it becomes possible to develop modern, advanced and effective methods of the social sphere financing.