ANALYSIS OF SOCIAL TRANSFERS: ASSESSMENT OF THE EFFICIENCY AND SUSTAINABILITY OF PUBLIC FINANCES

Abstract

The article proves that the analysis of social transfers is an important aspect of modern economic science, since these transfers directly affect social stability, economic balance and well-being of the population. In the context of globalization, rapid economic transformations and changing priorities in public finance management, the effectiveness and sustainability of social transfers are becoming the main indicators of the success of the state's social policy. Social transfers include various forms of state assistance provided to citizens to provide social support, reduce poverty and inequality, and stimulate social integration. They can be in the form of pensions, benefits, subsidies, privileges that reduce social and economic disparities in society. Assessing the effectiveness of social transfers is a complex and multifaceted process, as it requires taking into account various factors, such as macroeconomic conditions, inflation rate, public debt, as well as the impact on household income and expenditure. At the same time, the sustainability of public finances, which provides financing for social transfers, is an important factor determining the long-term stability of such payments. That is why the purpose of the presented work is to identify the features of social transfers based on the analysis of their features, as well as to assess the effectiveness of the sustainability of public finances in the context of the development of social transfers. To ensure the sustainability of social transfers in the context of changes in the global economic environment, it is important for states to implement transparent mechanisms for managing public finances, in particular regarding the effective use of the budget for social needs. The presented requires ensuring proper control over expenditures, preventing corruption and abuse of resources, which in turn will contribute to increasing citizens' trust in the social support system. It is also important to take into account the influence of external economic factors, such as global crises, fluctuations in world energy prices or changes in international trade relations, which can cause instability in the financing of social transfers. In such conditions, flexible planning and implementation of anti-crisis measures are necessary to mitigate the negative impact on the most vulnerable segments of the population. In conclusion, for the effective and sustainable development of the social transfer system, it is necessary not only to optimize the processes of financing and providing assistance, but also to develop long-term strategies that take into account economic, social and demographic changes. This will not only improve social welfare, but also strengthen public finances, contributing to their stability and resilience even in the face of global changes.