increased the maximum base charging a single fee to 25 minimum wages. It was an
attempt to withdraw the payroll from the "shadow", as the size of single contribution
was reduced; it should have helped to reduce the income of citizens. The second stage
of wage fund withdrawal from the "shadow" was the increase from 01.01.2017 the
minimum wage to the level of 3200 HRN. Thus, the government, by increasing the
minimum social standards, ensures a balanced income from the payment of a single
contribution as a significant source of income for the social insurance fund.
In general, the tax reform currently being implemented in Ukraine is aimed to
reduce tax burden (pressure) on incomes and is aimed at raising the income of
individuals from the "shadow", differentiating taxpayers from their income for fair
taxation.
Public financial policy involves use of public finances for tactical and strategic
plans of social development implementation, solving social tasks. This, in turn,
necessitates the study of functions and principles of the state social orientated financial
policy formation and implementation. Formation of the basis for determining the place
and role of financial mechanisms in the system of social development state regulation
will promote use of effective financial instruments for the implementation of effective
financial policy in the most priority socially important areas.
In addition to a wide array of mechanisms and instruments of fiscal and tax policy
in domestic practice, additional instruments of public finance policy have become
important: state and regional social programs, guaranteeing the minimum wage
development, providing state support to families, maternity, paternity and childhood,
the disabled and the elderly, social service systems development, establishment of
public pensions, assistance and other guarantees of social care [29].
Realization of public social function can be generalized in the following
directions: reproduction, protection, support, strengthening, development of human
potential and conditions of its vital activity, neutralization of social risks. These
directions are closely intertwined in the process of formation and implementation of
state financial policy – reproduction of the object and subject of public relations –
person, creating favorable conditions for life, opportunities for choice.
Generalization different authors’ approaches [17; 18; 19; 23; 32] to the main
functions of state financial policy allows to distinguish the following: redistribution,
mobilization, stimulation, stabilization, provision, coordination and regulation. The
fulfillment of these functions influences the course of all socio-economic processes in
society. For in-depth assessment of the consequences of public finance policy focused
on social development, it is expedient to distinguish following functions: reproduction,
strengthening; protection; support; development. All listed areas of public finance
policy are implemented to a greater or lesser extent at a certain point in time in a
society, but the predominance of some of them will depend on the socio-economic
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