2 (27) 2016

Demography and social economy, 2016, 2(27):130-142
doi: https://doi.org/10.15407/dse2016.02.130

L.M. Cherenko
PhD (Economics), Head of Sector
Ptoukha Institute for Demography and Social Studies of the National Academy of Sciences of Ukraine,
01032, Ukraine, Kyiv-32, Taras Shevchenko Blvd., 60
E-mail: cherenko@ukr.net

Language: Russian
Abstract: Low efficiency of social support in Ukraine together with the economic crisis and the impossibility of increasing the volume of social spending inevitably caused a total deficit of public finances and the necessity of making reforms. Model calculations of hypothetical scenario, which are presented in the article, prove that if the system were to remain unchanged, by 2020 it would require a substantial increasing of funding, but, at the same time, it would not guarantee efficient support to the poorest people and reduction of poverty in the country. The effects of reforms, which have begun in 2014, are too early to assess because the period is not sufficient to track the impact of change and transformation processes continue today. However, expected results might be discussed relying on the already made legislative changes in the social support sphere and forecasts of countrys socioeconomic development. Research proves that reforms in the system of social support for 20142016 can give quite substantial positive results by 2020, particularly for increasing of addressing funds for the poorest segments of the population with a simultaneous decreasing of the total cost of social programs comparatively with GDP. Necessary condition for achieving the expected results of reforms is maintaining balance between economic and social efficiency, which involves, on the one hand, the effective use of public funds and, on the other hand, the maximum respect for the principle of social justice in society.
Key words: state social support, social programs, social justice, categorical and target assistance, reforms.
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