MECHANISMS OF FINANCING SOCIAL PROTECTION OF VULNERABLE POPULATION IN THE CONDITIONS OF ECONOMIC TRANSFORMATION

Abstract

The article presents a comprehensive study of the mechanisms for financing social protection of vulnerable groups of the population in the context of the transformation of the Ukrainian economy, which is taking place under the influence of structural reforms, socio-economic instability and the challenges of post-war recovery. It is substantiated that the increase in the number of socially vulnerable groups of the population, in particular war veterans, internally displaced persons, persons with disabilities and low-income households, actualizes the need to improve financial instruments for the implementation of state social policy. Modern approaches to financing the social protection system are analyzed, in particular budget support, the activities of social insurance funds, mechanisms for international financial assistance and the involvement of the non-state sector, taking into account the limited financial resources and the growing burden on state finances. The role of the state as a key entity for financing social protection is determined, and the feasibility of transitioning to a program-targeted financing method, strengthening the targeting of social payments and implementing result-oriented approaches to the distribution of budget funds is also substantiated. Special attention is paid to the analysis of international experience in financing social protection of vulnerable groups of the population, which indicates the effectiveness of combining state resources with grant funding, social investments and innovative financial instruments, including social bonds and specialized trust funds. It is proved that social protection of war veterans is a priority area of financial social policy, since their successful social and economic reintegration directly depends on the stability and adequacy of financial support for social, medical and educational programs. It is summarized that in the conditions of economic transformation, the effectiveness of the social protection system is determined by the level of diversification of funding sources, transparency of the use of funds and adaptation of international practices to national development conditions. The conclusion is made about the need to form a comprehensive financial model of social protection, focused on ensuring social stability, reducing social risks and achieving sustainable socio-economic development of Ukraine.