BUDGET POLICY IN THE FIELD OF EXPENDITURE IN THE COORDINATES OF SOCIAL DEVELOPMENT

Abstract

Introduction. Social development is an important process of society functioning and it involves human potential strengthening, ensuring the appropriate level of welfare. An important condition for progressive social development is the budget policy on state and local budget expenditures. Expenditures as an instrument of budget policy is a source of public needs, therefore significantly affect the social sphere development. In the context of the crisis caused by unprecedented restrictions on business activity, the fall of GDP exacerbates social problems; it actualizes the study of theoretical principles, practical mechanisms/processes and priority areas for improving the effectiveness of social spending field fiscal policy. The purpose of the article is to reveal the theoretical aspects and substantiate the practical aspects of budget expenditures as a tool of budget policy of social development. Results. Theoretical principles of the essence of budget expenditures in the context of necessity of the state social function implementation are revealed. It is established that the formation of budget expenditures is influenced by economic, political, social and institutional factors. The priority directions of budget policy in the field of social budget expenditures in the conditions of financial and economic crisis, as well as for the medium and long term are highlighted. Emphasis is placed on the problematic aspects of budget policy in the field of budget expenditures to ensure the health care system in Ukraine. Conclusions. The directions of increasing the efficiency of budgetary policy in the sphere of budget expenditures for social development are offered. In particular - improving the system of expenditure planning, introducing annual mandatory reviews of budget expenditures and their timely publication, improving the institutional framework of partnership in the social programs/projects implementation, strengthening the institution of public control over local budgets, increasing transparency, accessibility, clarity for population and the timeliness of reporting on the status of social programs implementation. Emphasis is placed on the need to implement practical measures to eliminate/neutralize negative factors that affect the implementation of effective budget policy of budget expenditures.