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2WAYS OF BUDGETARY FINANCING OF SOCIAL SERVICES IN MODERN
CONDITIONS
DAVLATALI QURBONALIZODA
assistant of the department of finance The Tajik state university of finance and economics,
Dushanbe, Republic of Tajikistan
Abstract. This article includes the important aspects of the state budget funding process for social services and shows its actual situation. Social services are considered an important part of the social sphere of the state, the important aspects of the development of social services and its strengthening in the conditions of the digital economy are considered one of the most important aspects of society's life, and the opportunities for the population to be supported by the state in medical services, education and science, culture, assistance includes legal, safety and security, pensions and employment.
Introduction
The social services provided by the social welfare sector relating to social support, the provision of social services, medical, psychological, pedagogical, socio-legal services, and material assistance, contribute significantly to the well-being of individuals in various life circumstances. Based on this premise, the possibility of effective social welfare services is a prerequisite and necessity [1].
The mechanism of social welfare service provision can encompass governmental budget allocations, individual and community budgets, non-budgetary funds, external loans, and personal contributions from citizens. State assistance in fostering social cohesion through the provision of support to vulnerable groups, who are currently experiencing hardships, is imperative. For instance, the establishment of state-supported institutions (urban and rural) serves to facilitate the provision of assistance and support from both governmental authorities and local self-governing bodies [2].
Social welfare services, which represent a vital area of support for the population, can be implemented in various forms and funding mechanisms, facilitated by governmental bodies and other organizations and enterprises. Until the onset of the era of economic reform, all social service institutions, based primarily on public funding, primarily focused on providing essential services to beneficiaries [2-7].
With the progression of market economy in recent years and the growing necessity for comprehensive social welfare services for citizens, the scope of financial activities of social welfare institutions has expanded, engaging non-profit organizations and enterprises in a new entrepreneurial manner, thus diversifying their financial resources. In contemporary conditions, all available opportunities for the practical implementation of social welfare services for the population must be seized.
Materials and methods
This study aims to comprehensively investigate the mechanisms and strategies involved in the financing and provision of social welfare services in the Republic of Tajikistan. The analysis is conducted based on existing legislation, policy documents, and empirical data available from various sources. Overall, the combination of literature review, legal analysis, policy examination, data collection, financial analysis, comparative analysis, stakeholder interviews, and data interpretation provided a robust methodology for investigating the financing and provision of social welfare services in Tajikistan. This methodology allowed for a comprehensive understanding of the current status, challenges, and opportunities in social welfare service financing and informed recommendations for policy reform and improvement.
Results and discussion
Article 18 of the Constitution of the Republic of Tajikistan stipulates provisions regarding "Social Welfare Services", outlining that social welfare services can be efficiently and effectively provided by the social welfare sector [1].
ОФ "Международный научно-исследовательский центр "Endless Light in Science"
Comprehensive social welfare services entail the provision of social services without direct financial burden on citizens, with funding primarily sourced from the state budget allocations.
In the framework of state social welfare services, comprehensive social welfare services are implemented based on the established regulatory framework outlined in Article 19 of the aforementioned Law. The government of the Republic of Tajikistan determines the order and scale of providing comprehensive social welfare services.
Comprehensive social services in the framework of state social welfare services are provided according to the established regulatory framework of the Government of the Republic of Tajikistan [1].
The process of proposing social welfare services within the state social welfare sector is determined independently by them, ensuring that they do not contradict the legal standards of the Republic of Tajikistan [2].
Article 19 of the aforementioned law specifies that comprehensive social welfare services are proposed to individuals in need of the following categories within the state social welfare sector:
• Elderly individuals, those with illnesses, disabilities, or those lacking family support who may require assistance and attention;
• Individuals affected by natural disasters, emergencies, various social crises, or facing difficult life circumstances;
• Children, youth, and pregnant women in challenging life circumstances.
Local government bodies have the authority to designate the names of comprehensive social welfare services and their proposed foundations [2].
The funding of comprehensive social welfare services is aimed at providing essential resources for the organization and provision of various social welfare services to the population. Sources of funding for comprehensive social welfare services may vary and are linked to the country's level of development, economic system, and its political decisions. The funding sources for social welfare services in the social sphere are outlined in Table 1 [8].
Table 1. Funding of social services.
Term Definition Properties
Funding of social services The process of providing financial resources for the organization and provision of social services to the population, aimed at improving the quality of life and social protection • Public and/or private funding • Purposeful use of funds • Regulation and control by the state • Distribution of funds according to the preferences and needs of the population
The role of the state in financing social services Provision of financial resources, development and implementation of social programs, control and regulation of the funding process • Determination of funding priorities and directions • Ensuring access and quality of social services • Distribution of funds taking into account social needs • Monitoring the effectiveness of the use of funds
Sources of es funding of social servic Budget funds, taxes, donations, international aid, social security contributions • State budget • Taxes and fees • Donations • International aid and grants • Social security payments
Principles and of problems social financing services • Universal principle and equal access to social services • The principle of targeted use of funds • Problems of lack of funds • Problems of effectiveness and efficiency of financing • Problems of corruption and misuse of funds
Effectiveness and results of financing of social services Assessment of the achievement of goals and indicators of the quality of social services, improvement of life and social protection of the population • Improving the quality of people's lives • Reducing poverty and social inequality • Increasing access and quality of social services • Improving the health and wellbeing of the population
Social welfare services can be financed through various avenues:
• Government budget: One of the primary sources of funding for social welfare services is the government budget. The state allocates funds for programs and social welfare services, such as those related to healthcare, education, welfare, and assistance for the needy, from either the general budget or specific funds designated for social welfare purposes.
• Social insurance contributions: Another source of funding for social welfare services is through social insurance contributions. These contributions are made by workers and employers to social insurance funds or organizations. These funds are utilized for various social welfare programs, including those related to disaster relief, healthcare, and disability support.
• Grants and specific donors: Some programs and social welfare services may receive funding from philanthropic organizations and specific donors. These funds may be directed towards initiatives aimed at supporting vulnerable groups or individuals, as well as specific non-governmental organizations and charitable institutions. These funds can be used for project-based initiatives and unique social welfare programs, such as aiding the homeless or assisting disabled children [8].
• International organizations and grants: Some countries can benefit from international organizations and grants for financial assistance. These funds can be utilized to enhance social welfare services and implement programs aimed at social development. For example, international organizations may provide grants for combating poverty, improving access to education, or advancing healthcare.
It should be noted that sources of funding for social welfare services may vary between countries and be linked to local conditions and priorities. Utilizing a diverse range of funding sources can contribute to the effective provision of social welfare services to the population.
Budgetary funding for social welfare services can be divided into two categories: funding for the overall volume of social welfare services and specific purpose programs (which may be sectoral or comprehensive). In the former case, funds are allocated to a specific budget holder, while in the latter, funding can be directed to various sectors. In this scenario, budgetary funding may be provided directly to a department responsible for social welfare or allocated through specific programs or departments.
The budget of the Republic of Tajikistan includes social welfare expenditures, which play a significant role in implementing state social policies. (Table 2).
Table 2. Expenditure of the Republic of Tajikistan's Social Budget for the Years 2020-2024, in
Billion Somoni.
Name 2020 2021 2022 2023 2024
Education 728105 895194 1065395 1412589 1628700
General education 182493 143510 181223 205101 272650
Professional education 458891 631610 704963 841797 997131
Other institutions 86721 120074 179209 365691 35891
Health 1868561 514235 358966 570579 610204
Hospitals 140050 163388 195029 268905 286569
Health centers 6797 7597 7567 9892 11459
Protection of public health 45746 55883 57882 73939 91492
Other activities 1675969 287367 98488 217843 220684
Social insurance and social security 865227 430684 596816 719333 861652
Social insurance 707874 67537 437913 513530 631933
Social security 6019 84139 74311 83667 95012
Other activities in the field of social insurance and social protection 97162 351364 84592 122136 134707
Culture and sports 370245 6762 446273 561016 710007
Activities on physical education and sports 4326 105148 9702 11436 12940
Cultural and educational institutions 88927 152000 114728 132381 149535
Mass media 139691 87454 183753 229279 275428
Other activities in the field of culture and sports 137302 895194 138090 187920 272104
One of the critical issues in social welfare services is the establishment of the education system within the state. Article 41 of the Constitution of the Republic of Tajikistan stipulates that every individual has the right to education. The fundamental general education is guaranteed. The state ensures the provision of fundamental general education in state educational institutions [1].
The funding source for all educational, research, and innovation activities, as well as the development of social and economic aspects of education, including the funding of institutions (organizations) and other activities not prohibited by the laws of the Republic of Tajikistan, is organized [9].
The funding for the education sector is mentioned separately in the state budget each year, with due consideration given to the minimum standards for funding educational institutions. These standards relate to the type, form, content of education, the local context of education delivery to a learner, to an educational institution, or otherwise specified, to assist in covering the costs associated with the education sector. The procedure for determining the funding standards of educational welfare services, including the funding of wages, is established by the Government of the Republic of Tajikistan based on the state budget [9].
Provision of funding for scientific and research activities of average and higher educational institutions can be implemented comprehensively through financial support (subsidies) for the implementation of research projects recommended by institutions (organizations) in practical form. Educational institutions receive allocated funds and other resources independently from the budget and other sources as per legal provisions of the Republic of Tajikistan and the institution's charter.
The directions of the social policy preference may be implemented within the framework of targeted programs. The targeted program is a comprehensive document that defines the tasks of the preferred duration. In relation to the complexity of tasks, financial and organizational opportunities, programs may be accepted for a period of 2 to 5-10 years, although, generally, programs for a period of 5-10 years are preferred [9].
The state's financial policy in the social sphere demands continuity. This involves developing effective financing mechanisms and financing for social sector organizations, including healthcare institutions, industrial and trade enterprises, banks, insurance organizations, social organizations, and individuals engaged in social activities. The development of the financial resources of market entities and concessional lending to cooperative organizations is related to this. Therefore, a range of strategies and programs have been adopted for the development of social service provision at the national level (Table 3).
Table 3. List of National Socio-Economic Development Strategies and Programs until 2030.
№ The name of the strategy and programs Execution time
1. National development strategy of the Republic of Tajikistan 2015-2030
2. National strategy of education development of the Republic of Tajikistan 2030
3. Medical staff training program 2030
4. State program of health care and social protection of the population of Khatlon region 2021-2025
5. National communication program of the first 1000 days of a child's life in the Republic of Tajikistan 2020-2024
6. The state program for the development of preschool education in the Republic of Tajikistan 2020-2025
7. State program of improvement, education and training of Russian and English languages in the Republic of Tajikistan 2019-2030
8. Vocational training program for citizens of the Republic of Tajikistan 2021-2025
9. Program for the development of transport services in the Republic of Tajikistan 2020-2024
10. National program for the prevention of delinquency among minors 2020-2024
11. Program for prevention of obesity and formation of healthy food in the Republic of Tajikistan 2019-2024
12. Food security program of the Republic of Tajikistan 2020-2024
13. The state program for the development of digital television broadcasting in the Republic of Tajikistan 2020-2024
14. The state program for the development of television and radio in the Republic of Tajikistan 2021-2025
In contemporary conditions, there is a necessity for the establishment of a new principlebased mechanism for organizing the financial sector of the social sphere. The government sector, trade organizations, and non-profit entities have the rights to utilize all existing resources and legal frameworks related to financial management, which assist in financing social development initiatives in the state's economy [10].
The emergence of social service financing through innovative means leads to specific outcomes and predefined objectives. The outcomes of social service financing may differ and be linked to specific programs and interventions being financed.
One of the fundamental outcomes of effective social service financing is the improvement of the quality of life of individuals, especially those engaged in vulnerable occupations. Social financing can facilitate the provision of diverse and supportive services aimed at enhancing individuals' living conditions, including access to education, healthcare, security, housing, and other essential needs.
Social service financing also contributes to striving for equality in society. By providing financial support to individuals with low or no income, social service financing aims to reduce the gap between the wealthy and the disadvantaged, ensuring equal opportunities for all citizens.
Social service provision contributes to the development of social cohesion, especially among community members. The provision and support of diverse services to individuals help bring communities together, facilitating education, employment, and active participation in various social activities. This aids in strengthening social ties and creating inclusive and cohesive communities.
Social service financing is crucial for economic development and stability. By providing services and support to individuals, it helps alleviate hardships and challenges, thus improving productivity and enhancing their economic participation. Furthermore, social service financing can create new job opportunities, fostering the growth of social enterprises and industries.
Overall, the outcomes of social service financing through innovative means lead to tangible results, including improving the quality of life, promoting equality efforts, fostering social cohesion, and positively influencing economic development and stability.
Conclusion
In conclusion, social service financing plays a significant role in shaping the landscape of social welfare in challenging circumstances within societies. While the government is the primary source of social service financing, other sources, including private contributions and international organizations, also exist. The principles of social service financing prioritize equality, effectiveness, and sustainability. By adhering to these principles, addressing the issue of underfunding and ineffective use of resources becomes essential. Achieving better outcomes in the field of social welfare requires collective efforts from all members of society to effectively address funding challenges and ensure successful social service provision.
REFERENCES
1. Constitution of the Republic of Tajikistan was adopted on November 6, 1994, through a nationwide referendum. Subsequent amendments were made on September 26, 1999, June 22, 2003, and May 22, 2016
2. Law of the Republic of Tajikistan "On Social Services" dated January 5, 2008, No. 359
3. Law of the Republic of Tajikistan "On the State Budget of the Republic of Tajikistan" for the year
2020, dated November 26, 2019, No. 1650
4. Law of the Republic of Tajikistan "On the State Budget of the Republic of Tajikistan" for the year
2021, from November 20, 2020, No. 1724
5. Law of the Republic of Tajikistan "On the State Budget of the Republic of Tajikistan" for the year
2022, from November 30, 2021, No. 1804
6. Law of the Republic of Tajikistan "On the State Budget of the Republic of Tajikistan" for the year
2023, from December 7, 2022, No. 1916
7. Law of the Republic of Tajikistan "On the State Budget of the Republic of Tajikistan" for the year
2024, from November 18, 2023, No. 2012
8. Social Security Financing: Key Aspects and Financial Support Mechanisms https://nauchniestati.ru/spravka/finansirovanie-soczialnogo obsluzhivaniya/?ysclid=lr2umrw95z18327230 (2023)
9. Law of the Republic of Tajikistan "On Education" dated March 6, 2013, No.
10. 1095 (Majlisi Oli Bulletin of the Republic of Tajikistan, 2013, No.7, Amendment 532; 2014, No.3, Amendment 156, No.7, Clause 2, Amendment 422; 2016, No.3,
11. Amendment 148, No.7, Amendment 624; 2017, No.7-9, Amendment 581; 2018, No.5, Amendment 278)
12. G.B. Poliak, State and Municipal Finance: A Textbook. 3rd edition, revised and expanded (Unity Publishers, Moscow, 2008)
