Modeling Financial Supply of State Social Expenditures: The «Human-Center» Tax Principle

Document Type : Research Paper


1 Department of accounting, finance and information technology. Luhansk National Agrarian University, Starobilsk, Ukraine.

2 Department of Accounting and Auditing, Kharkiv National Agrarian University named after V.V. Dokuchaev, Kharkiv, Ukraine.

3 Department of Agrologistics and Supply Chain Management. Petro Vasylenko Kharkiv National Technical University of Agriculture, Kharkiv, Ukraine.

4 Department of business and law. Poltava State Agrarian Academy, Poltava, Ukraine.

5 Department of Economics of Enterprise, Marketing and Economic Theory. Luhansk National Agrarian University, Starobilsk, Ukraine.

6 Department of Management, Law, Statistics and Economic Analysis. Luhansk National Agrarian University, Starobilsk, Ukraine


Comprehensive economic development is possible only with the balance of interests of business entities and the state, which should be reflected in financial policy. In this case, the transformation of the fiscal system should take into account the stage of economic development of the country. An information array consisting of 36 countries and 10 socio-economic indicators was adopted as the basis for the development of benchmarks for assessing the effectiveness of public resources for the implementation of social policies in the region. The basic features which characterize the state of social orientation of the state policy of the countries in correlation of the spheres of social expenditures and the national system of taxation as social arguments are outlined. Comparative intercluster characteristics are identified and essential differential and baseline characteristics are distinguished. In order to determine the rationality and effectiveness of the current tax system and its impact in the field of social guarantees of the state as well as to increase the degree of social protection of the most needy population, a methodological approach was proposed, using a multidimensional statistical procedure, cluster ranking, which allows the grouping of objects on several grounds simultaneously to define main characteristics of the studied world economies for simulation of “bench marking” – system of financial support of state social expenditures, built on the principle of "human-center" taxation.


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