MODELING THE FINANCIAL PROVISIONS FOR PUBLIC WELFARE IN ALIGNMENT WITH PUBLIC BUDGETING PRIORITIES

Abstract

This scientific article, derived from synthesizing international research findings, enriches our understanding of the intricate relationship between state budget allocations for public goods and the modeling of societal well-being. The study aims to standardize the calculation of public welfare expenditure indicators to prioritize budget allocations for public goods. Employing a conceptualization of public welfare in market-oriented countries, as well as scientific methods of synthesis, comparison, and graphic data analysis, the authors introduce an innovative approach to quantitatively assess and compare spending priorities of public financial resources on public welfare across nations. The study categorizes government expenditures according to an international classification into three models of public welfare, in addition to general state maintenance costs. These models range from basic protection and security (the first model) to the provision of public goods for economic freedom (the second model), culminating in the third model, which addresses contemporary complexities in ensuring population self-development and enhancing societal "value" through self-expression. Analysis reveals that, as of 2021, Ukraine allocated a substantial portion of its budget to support economic activity and government operations, especially in the context of anti-terrorism efforts and a modest economy, resulting in a reduced share of spending on self-improvement and social security compared to EU countries. The article underscores the significance of incorporating sustainability criteria in future research, aligning with the UN SDGs, when examining modern social welfare practices. This research adds to the ongoing discourse on optimizing budget strategies to enhance overall citizen welfare.