BUDGETARY PROVISION OF SOCIAL STANDARDS AS A FACTOR OF IMPROVING THE STANDARD OF LIVING OF THE POPULATION OF TERRITORIAL COMMUNITIES

Abstract

The article examines the budgetary provision of social standards as an important factor in improving the standard of living of the population of territorial communities. The role of social standards, in particular the subsistence minimum and the minimum wage, in shaping both the expenditure and revenue parts of the budget system is substantiated. It is determined that social standards act as basic benchmarks of state social policy and significantly influence the financial capacity of local budgets. The interdependence between the growth of social standards and changes in budget expenditures on social protection, wages in the public sector, and social transfers is analyzed. It is proved that increasing the subsistence minimum leads to a direct rise in budget expenditures, while indirectly affecting budget revenues through increased consumer demand and expansion of the tax base. The impact of minimum wage growth on personal income tax revenues, which form a significant share of local budget revenues, is also highlighted. The importance of intergovernmental transfers in ensuring the financial capacity of territorial communities and balancing their budgetary opportunities is substantiated. It is established that higher social standards increase the need for transfers from the state budget to finance delegated social responsibilities and support the provision of public services. The dynamics of key social standards in Ukraine during 2020–2026 are analyzed using trend models, which confirm a steady upward tendency. A comparative analysis of minimum wages in European countries is conducted, and an additional group of countries with minimum wages below 500 euros is proposed. It is noted that Ukraine belongs to this group, indicating a significant gap between national and European social standards. The study concludes that effective budgetary provision of social standards contributes to strengthening the financial capacity of territorial communities, improving the standard of living of the population, and ensuring the balance and sustainability of the budget system. These findings highlight the importance of coordinated fiscal and social policy measures at both national and local levels.