№ 9/2018

Fìnansi Ukr. 2018 (9): 7–24

FINANCES OF THE INSTITUTIONAL SECTORS

IVANOV Serhii V.¹

¹Prydniprovska State Academy of Civil Engineering and Architecture
OrcID ID : https://orcid.org/0000-0002-1205-3797

Household finances: analysis in the context of Ukraine’s welfare policy

The article considers a household as a subject of the national economy. Its functions in the national economy are defined. Based on the statistical data of the household survey, the analysis of sources and dynamics of financial resources of households in Ukraine is made. The basis of household finances is their income, which is mainly generated as a result of wage employment, business activities and social transfers. The analysis of statistical data of the dynamics and structure of incomes has revealed a growing trend in the monetary incomes of households. It shows that the share of wages in the structure of incomes is reduced while the share of social transfers is increasing, which does not correspond to the principles of a market economy. Household income in Ukraine remains low compared to other European countries. More than half of households have a low level of material security, which is lower than the actual subsistence level. There is an excessive stratification of households in terms of income per capita. The reasons for the low living standards of the population and impoverishment, both in the economic sphere and in social policy, are systematized: a low economic potential of Ukraine and weak economic efficiency, an imperfect mechanism of redistribution of the national income, dissemination of shadow economic activity, the inefficient use of state budget funds. The negative impact on household incomes and welfare also underdevelops the foundations of the social state and the corresponding social policies in Ukraine. Based on the analysis of foreign experience in the formation of the social state and the processes of socialization of the economy, the author defines ways of reinforcing state social policy in Ukraine aimed at improving the mechanism for the formation of financial resources of households in the context of establishing the foundations of a European-style social-welfare state.

Keywords:household, household finances, income, poverty, income inequality, social policy of formation of household finances, economic model of the social state

JEL: D13, D14, H31, R28

Ivanov S. V. Household finances: analysis in the context of Ukraine’s welfare policy / S. V. Ivanov // Фінанси України. - 2018. - № 9. - C. 7-24.

Article original in Ukrainian (pp. 7 - 24)

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