the following components and instruments of the financial mechanism for
implementing the state financial policy: fiscal, monetary, debt, price and others. Social
development financial policy implementation and social policy effectiveness largely
depends on the application of such basic methods of financial influence: financial
regulation and financial security. In practice, financial regulation and financial
provision of social development are carried out with the aim of qualitatively improving
the indicators characterizing the social sphere. This refers to the level of income and
expenditure of the population, their patterns, growth rates; social sectors conditions
(education, health, culture, etc.); minimum social guarantees; availability of social
services, development of social infrastructure, etc.
Existence of acute social problems in Ukraine, in particular poverty and social
inequality, injustice in income and wages; unemployment; problems of the elderly
population; contradictions in the social sphere needs to enhance the role and
effectiveness of public financial policy in social function fulfillment ensuring.
Functions and principles of state financial policy in ensuring social
development of society. In practice, social policy in Ukraine is concentrated in one
direction – social protection, which is caused by a low standard of living of the
population. Accordingly, the state financial policy fulfills the current tasks of
neutralizing social tensions in social sphere certain sectors or improving the living
standards of certain categories of the population and is not aimed at implementing the
strategy of society social development in the broadest sense.
Public finance policy has clear objectives, depending on strategic and tactical
priorities, respective tasks and established financial mechanism. The main goal of state
financial policy is to create maximum amount of financial resources and rational
distribution of them among the subjects of financial relations to ensure socio-economic
development of society. Achievement of the main goal of financial policy is realized
through financial mechanism. It should ensure practical implementation of state
financial regulation, reflect a certain orientation of fiscal-tax relations to solve
economic and social problems at a specific stage of society development [2, p. 22].
Financial mechanism is a set of measures through which practical realization of state
financial policy is carried out. Financial mechanism consists of financial methods, tools
and instruments, including legal, regulatory and information tools of state financial
policy.
Public financial policy involves use of public finances to address economic and
social challenges of society development. State social function performing is primarily
related to fiscal policy, as an important component of financial policy, formation and
implementation of which directly affects the standard of living of the population, socio-
economic development of society [19].
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