SOCIOECONOMIC SIGNIFICANCE OF TARGETED WELFARE BENEFITS IN UKRAINE

Abstract

In the period of the independence of Ukraine, a decent standard of living for the citizens has not been achieved. Because of various socioeconomic and political issues, the social protection problems of the most vulnerable population strata are becoming more and more acute. The primary problem is permanently low financial security level, accompanied by inefficient distribution and lack of rational use of targeted financial means in social policy implementation. Therefore under current circumstances it is especially important to determine effectiveness of social protection of the population that is below the poverty line, including welfare benefits, namely their targeting.

The official statistical data on social expenditures budget financing shows that in the last decade there is a pronounced tendency towards annual decrease of its share both in gross national product and in the consolidated Ukrainian state budget structure. Sociopolitical factors have a significant impact on the implementation of the state social policy and determining of its new directions. An example of this is the annexation of the Crimea and the permanent military events in the eastern part of the country. Because of that in 2014 special targeted assistance for internally displaced people was initiated by the state authorities.

Housing subsidies program is in the process of reforming. At the beginning of 2018, the government introduced a subsidy monetization reform, which was based on the provision of transparency and targeting of welfare benefits distribution process.

There are following reasons for addressing the social protection system for vulnerable groups of population:
– a significant increase in the ability of the system to provide welfare benefits and services to those who really needs it;
– making it impossible to access budget funds provided for the payment of state welfare benefits and provision of social services for those who are not supposed to receive them.
This will reduce the cost of social assistance programs at all levels, which is an important factor under limited financial resources circumstances.