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

7 Department of accounting, finance and information technology. 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.


Byung Il Park, Agnieszka Chidlow, and Jiyul Choi ( 2014). Corporate social responsibility: Stakeholders influence on MNEs’ activities. International Business Review, Vol. 23(5), pp. 966-980.

Data Clustering: Algorithms and Applications (Chapman&Hall/CRC Data Mining and Knowledge Discovery Series).- C. C. Aggarwal, C. K. Reddy.- : Chapman and Hall/CRC, 2013.

Kenny Z. Lin, Suwina Cheng, and Fang Zhang (2017). Corporate Social Responsibility, Institutional Environments, and Tax Avoidance: Evidence from a Subnational Comparison in China, The International Journal of Accounting,Volume 52(4), , pp. 303-318

King, R. S. (2014). Cluster Analysis and Data Mining: An Introduction / R. S. King.- S. l: Mercury Learning&Information.

Food and Agriculture Organization (FAO). (2020). Q&A: COVID-19 pandemic – impact on food and agriculture. Retrieved from:

Hobbs, J. E. (2020). Food supply chains during the COVID‐19 pandemic. Canadian Journal of Agricultural Economics, pp. 1-6. (

Ivanov, D., and Dolgui, A. (2020). Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak. International Journal of Production Research, Vol. 58(10), pp. 2904-2915.

Larue, B. (2020). Labour issues and COVID‐19. Canadian Journal of Agricultural Economics, Forthcoming, Vol. 68, pp. 231-237.

Modak, N. M., Modak, N., Panda, S., and Sana, S. S. (2018). Analyzing structure of two-echelon closed-loop supply chain for pricing, quality and recycling management. Journal of Cleaner Production, Vol. 171, pp. 512-528.

Mor, R., Srivastava, P., Jain, R., Varshney, S., and Goyal, V. (2020). Managing Food Supply Chains Post COVID-19: A Perspective. International Journal of Supply and Operations Management, 7(3), 295-298.

Nguyen, H., Tham, J., Khatibi, A and Azam, S. (2020). Conceptualizing the effects of corporate tax rate differentials on transfer pricing activities of FDI enterprises in Vietnam. Accounting, Vol. 6(3), pp. 291-300

Oktaviani, R., and Kurnia, H., Sunarto, S and Udin, U. (2020). The effects of taxpayer knowledge and taxation socialization on taxpayer compliance: The role of taxpayer awareness in developing Indonesian economy. Accounting, 6(2), 89-96.

Organisation for Economic Co-operation and Development.

Pant, S., and Mahapatra, S. (2018). Bank Mediated Financial Supply Chains: Implications for Supply Chain Strategy and Operations. International Journal of Supply and Operations Management, Vol. 5(4), pp. 298-318.

Pavlis, N., Moschuris, S., Laios, L. (2018). Supply Management Performance and Cash Conversion Cycle. International Journal of Supply and Operations Management, Vol. 5(2), pp. 107-121.

Reynolds, A. (2006). Clustering Rules: A Comparis on of Partition in gand Hierarchical Clustering Algorithms. Journal of Mathematical Modelling and Algorithms. Vol. 5, рр. 475-504

Sangaiah, А., Goli, А., Tirkolaee, А., Ranjbar-Bourani, М., Pandey, H. and Zhang, W. (2020). Big Data-Driven Cognitive Computing System for Optimization of Social Media Analytics. IEEE Access, Vol. 8, pp. 82215-82226.

Sebt, M., and Sasanian Asl, F. (2021). The Selective Study of a Closed-Loop Supply Chain by a Socially Responsible Prospective. International Journal of Supply and Operations Management, Vol. 8(1), pp. 39-52.

StatSoft: electronic text book of statistics. Available at:

William F. Yancey, and Karen S. Cravens, A framework for international tax planning for managers. Journal of International Accounting, Auditing and Taxation, Vol. 7(2), 1998, pp. 251-272.

Vasyurenko, L., Kuksa,. Мykola, Z and Olena, N. (2020). Adaptive accounting of production activities of transnational companies under the conditions of globalization. Accounting, Vol. 6(6), pp. 913-922.

Vasurenko, L., and Kuksa, I. (2018). Financial provisions for individualization of loan payment level. Financial And Credit Activity: Problems Of Theory And Practice, Vol. 3(26), pp. 469-476.

Vasyurenko, L., Kuksa, I., and Danylenko, V. (2019). Ordering Logistics Management of Professional Standard Attribution of the Higher Education Specialist. International Journal of Supply and Operations Management, Vol. 6 (4), pp. 389-394.

Yelagin, V., Luhovenko, N., and Afanasieva, Y. (2019). Socio-economic factors of the impact of actors of social relations on the development of labour market in ukraine. Financial And Credit Activity: Problems Of Theory And Practice, Vol. 1(28), pp. 495-505.