Public expenditure on social protection through economic development

Abstract

The research subject is the influence of public financing of social protection to ensure the country's economic development. The article purpose is to reveal the role of public expenditure on social protection in the financing of economic development. The research methods. The paper used the set of general scientific and specific methods and approaches, such as dialectic, systems, method of scientific abstraction, comparative and factor analysis, logical approach. The results. The role and importance of public financing of social protection for the economic development of the state are the main focus of the article.The scientific approaches to the meaning and effect of population factors financing of social protection on economic developmentaressummarised. Interconnection social spending and increasing human and intellectual potential as a production resource development is shown. Features the influence and direction of funding social expenses related to the reform of the social sphere are determined. The prioritisation of public financing of social protection to ensure economic growth in the context of Indicator for sustainable social development are proposed. Sphere of application results: the state financial policy in the social sphere. Conclusions. Expenditure on social protection and social security should be treated as a public investment in the development of production, human capital, health and national intelligence, which are the basis of the information and innovation development. For the development of Ukraine as a social state will be necessaries to ensure: the improvement of the legislative framework, increasing the financial and fiscal discipline for the population and economic entities, the middle class formation, the introduction of multi-channel financing of social projects and programs, improved financial monitoring, increased control and transparency of the formation and implementation of financial policies that increase the level of social standards and guarantees, minimum wages, living standards in general, the latter's participation in public life and the activities of local authorities. Policies aimed to reduce public expenditure on social protection, including by reducing the number of social payments to recipients, raising the retirement age, the introduction of restrictions on the size of payments for working pensioners, has a negative impact. This is evident in social tension, worsening demographic situation and factors of social development index, as well as lead to tension in the activities of social services and access to the labor market, it stimulates the growth of the shadow economy etc.