The transition to market relations and the corresponding structural changes in economy influenced the formation of incomes, their use and distribution system. The largest share in the structure of monetary income of the population is wages; it has increased in recent years. At the same time, there occurred the decline in production in the process of market transformation economy and, as a consequence, forced underemployment and unemployment of a large part of the working population, lack legislative levers of influence on the regulation of the property process stratification of the population led to a decline in living standards, deepening its stratification by the level of cash income and distribution of property, the inability of the majority of the population to do savings, spreading the shadow of monetary income of citizens, hiding them from taxation. This led to a reduction in the effective demand of the population, narrowing the volume of domestic market, reducing opportunities for domestic investment resources and restraint of economic growth of the state. The country’s economic growth is observed from year to year, it directly depends on the welfare of the population and their income. Socio-economic development of the country is impossible without the participation of the population and accumulation of human capital, investment in it. Structural changes in Ukraine’s economy – human capital index, average income, migration processes, declining total population – have negative consequences for economic growth in the country as a whole. Therefore, there is an urgent need to study this issue, taking into account all possible prospects. The peculiarities of these indicators specify the development of any country, where one of the main macroeconomic goals is due to the need to outpace the growth of national income in comparison with the growth of the index of human capital and income of citizens. The economic development of the country concerns money and the increase of the general welfare of the population. The way to improve the better life and economic development of the country is possible taking into account the transformation processes, but achieving this involves solving a set of goals and objectives facing governments at all levels. Economic and social development of the oblasts of Ukraine seeks to be better today. The delimitation of oblasts is caused by the level of the average wage, as well as the total per capita income. The study of indicators of socio-economic development requires clear and precise actions on the part of the state and local self-government. The creation of development strategies for a certain period helps to improve the situation in the oblasts of Ukraine, but it is a temporary phenomenon that is not a managed system in some cases. Currently, there is a problem of economic development, social protection of low-income groups and health care, retirement-age people and so on. All human and civil rights are equal and interrelated, and therefore they must be equally protected by the state: human’s life and health, honour and dignity, inviolability and security are the highest social values (Article 3); free development of personality (Article 23) is determined by the Constitution of Ukraine. The study outlines the relationship and interdependence of local budget revenues from subsidies and subventions of the state budget, economic activity of the population, as well as the unemployment rate is an important indicator of the general state of the economy.
Development of the Financial Mechanism for the Provision of Public Services
