MONITORING THE EFFECTIVENESS OF BUDGETARY SOCIAL TRANSFERS: INTERNATIONAL EXPERIENCE AND UKRAINIAN REALITIES

Abstract

This article examines the effectiveness of budgetary social transfers as a key instrument of public welfare and intergovernmental fiscal relations, particularly under martial law and during post-crisis recovery. Beyond their income support function, social transfers have significant investment and transformational potential, especially for poorer households. They help ease credit constraints, enhance economic security, and promote more productive resource use within households, thereby contributing to human capital development and long-term economic growth. The study offers an in-depth analysis of the transformation of Ukraine’s social transfer policies during 2020–2024, highlighting both quantitative dynamics and qualitative structural shifts. International practices from Germany, France, the Netherlands, Poland, and Turkey are reviewed to identify effective approaches to targeting, monitoring, and managing social assistance programs. Particular attention is paid to the dual economic effects of social transfers: their long-term potential to smooth intertemporal consumption and reduce poverty, and their possible short-term inefficiencies when applied excessively or without adequate targeting. The article discusses digital tools – such as feedback systems, automated platforms (e.g., E-devlet, DigiD), and centralized registries – as prerequisites for ensuring openness, transparency, and the effective use of budgetary resources. The findings underscore the need to establish a comprehensive monitoring framework in Ukraine aligned with international standards. Drawing on the experience of EU countries, particularly Turkey, the paper outlines strategic directions for reforming Ukraine’s social transfer system, including funding unification, digitalized administration, enhanced targeting, and localized monitoring. In the post-war context, social transfers are positioned not only as compensatory but also as transformational tools to reduce poverty and foster social engagement. The comprehensiveness of the proposed measures lays the foundation for an effective, transparent, and socially just policy framework in Ukraine.