BUDGETARY FINANCING OF SOCIAL FUNCTIONS OF THE STATE: ESSENCE, SIGNIFICANCE AND COMPONENTS

Abstract

The article analyzes the essence, significance and components of the budgetary funding of state’s social functions. A detailed analysis of the economic, financial, philosophical and reference literature books has been carried out in order to define the meaning of the categories “function”, “social function”, “social function of the state”. The normative legal acts regulating the process of budgetary funding of the social function of the state have been summarized in order to specify the functions of this process. It has been established that the implementation of the social functions of the state provides for the use of mainly budgetary and extra-budgetary (state funds of compulsory social insurance) sources of financing. Budgetary funding and the budget process in Ukraine are subject to the provisions of the Constitution of Ukraine, the Budget Codex, as well as the annual passage of the law of Ukraine on the State budget for the respective year and legal acts of local representative bodies on budgets for the following financial year. It is summarized that for the majority of modern legal scholars, economists and financial experts it remains unchanged that the functions of the state should be understood as the main directions of the state activity, determined by its social purpose and there are tasks at every particular historical stage of the development of the country. The social function of the state should be understood as one of the main priorities of the state activity, aimed at moral and material support of the social sphere or vulnerable stratums of the population so that to meet specific needs and ensure a high quality of life of society through budgetary funding. In general, budgetary funding is based on certain principles and is characterized by specific forms and methods of providing funds. The principle, form and methods of budgetary funding are constituent elements of the system itself. They influence the effectiveness of the system functioning. First of all, an important role in the organization of a rational system of budgetary funding is played by the principles of financing. Among these principles, there are: obtaining the maximum effect at the lowest cost; providing the budgetary funds to the extent as the production and other indicators are fulfilled and taking into account the use of the previously provided appropriations; inconsistency of budgetary appropriations.