The paper reveals the economic essence of financial provision of social protection as a component of the system of social relations, which is a set of economic relations associated with the formation, distribution and use of financial resources of the state, business entities and households, designed to prevent, compensate or neutralize social risks, based on the regulation of socio-economic processes and the effective application of mechanisms of fiscal and social policy, which will contribute to the effectiveness and efficiency of financial management of social protection of the population. The structural and functional model of financial provision of social protection, which is characterized by the integration of social responsibility and based on the consolidation of public, private, voluntary and individual mechanisms of financial relations, was developed.
The financial mechanism of social protection, which involves the use of financial methods, tools and levers of influence on arranging the optimal structure of income for the accelerated development of human capital and is based on the provisions of the adaptive financial architectonics of citizens’welfare, the integration of financial, economic and socio-demographic components of state regulation of social development. The institutional bases of fiscal provision of social protection of population are substantiated, which is manifested in conceptualization of approaches of tax regulation of social relations on the basis of fiscal and social purpose of wages, as the main object of taxation and indicator of living standards of the population respectively. The experience of formation and implementation of the financial provision system of social protection in the countries with developed and transformational economies is systematized.
The methodological basis for assessing the effectiveness of financial provision of social protection of the population on the basis of indicators reflecting the level of its impact on the living standards of the population; approaches to enhance the effectiveness of the budget component of financial provision of social protection based on the mechanism of social order; regulations on the functioning of the system of financial provision of social protection based on the distribution between its components of risks associated with changes in the demographic situation and fluctuations in the capital market; approaches to the mechanism of financial provision of social insurance as a component of social protection; approaches to the formation of state policy to modernize and update the system of financial provision of social protection as a component of public transformations were improved.
The approaches to the definition of the peculiarities of establishing and forming the domestic system of financial provision of the populationsocial protection, which will contribute to improving the soundness of state financial regulation of social development of the country; provisions to the procedure for determining and financial provision of social standards and social guarantees as an adaptive tool for regulating social development, which will improve the quality level of implementation of state financial and budgetary policies; approaches to the priority areas of improving the efficiency of financial provision of social protection, taking into account mutually coordinated actions between the state, business entities and households, which will contribute to the creation of appropriate conditions for the formation and implementation of effective state socio-economic policy; approaches to progressive mechanisms of accumulation and use of financial resources of the social protection system, which will promote the development of social infrastructure in conditions of economic transformation, have been further developed.
