Modelling Priorities of Financial Provision of the Social Sphere

• Main Authors: Mamonova Hanna V., Kantsur Inna H.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2014-01-01
• Series: Bìznes Inform
• Subjects: social sphere; components of the social sphere; financial provision of the social sphere; hierarchy analysis technique; directed communication graph
• Online Access: http://www.business-inform.net/pdf/2014/1_0/179_183.pdf

The article studies the modern state of the social sphere and conducts modelling of priorities of financial provision of the social sphere at the state level. Social sphere should be considered as the basis of development of the national economy. The goal of this article is the study of the modern state and modelling priorities of financial provision of the social sphere at the state level. The subject of the study is modelling priority directions of financial provision of components of the social sphere. Taking into account fast changes in the social sphere of the country and regular increase of social standards, the article identifies a necessity of changing priorities of the social policy, first of all, problems of financing the social sphere and formation of priority directions on improvement of this system. The article shows that the main problems of financial provision of the social sphere are: insufficient volumes of budget funds for financing the social sphere, financing practically all items of social expenditures in a smaller volume than it is required for the existing social support of the population and absence of mechanisms of ensuring quality of social services. The article offers to use the hierarchy analysis method for identifying immediate and priority directions of financing components of the social sphere. On the basis of the built directed communication graph the article presents a binary matrix of dependence of components of the social sphere and builds a hierarchy model of these components. As a result it is seen that the highest level of hierarchy is taken by science, then healthcare and social sphere are at the same level, then education, sports and at the lowest level are culture and art. The obtained results could be used when improving financing of the social sphere. In order to ensure efficiency of functioning of the social sphere it is necessary to improve the system of financing of its components on the basis of use of the hierarchy model. Moreover, building the model of hierarchy composition of priorities of the social sphere with consideration of experience of the leading world countries requires further study.