THE ESSENCE AND ROLE OF PUBLIC FINANCE IN THE IMPLEMENTATION OF SOCIO-ECONOMIC POLICY

Abstract

The article analyzes theoretical concepts and the practice of public finance functioning in both Ukraine and developed foreign countries. It demonstrates that in a market economy, the state takes on the responsibility of solving those tasks that cannot be effectively handled by the private sector or are resolved inefficiently.

The aim of the article is to study the current trends in public finance and their role in the implementation of Ukraine's socio-economic policy.

Public finance forms the financial foundation for the activities of the highest bodies of state power and governance. They are intended to meet the needs of society that are of national importance and reflect the interests of the entire state. Public finance serves as a tool for influencing the socio-economic development of the country. Public finance is responsible for the distribution and redistribution of GDP among different regions of the country and sectors of the economy to ensure their balanced development. Thus, public finance contributes to the optimization of the territorial and sectoral development of the country.

The article identifies that the state corrects market failures by providing public goods and taking measures against negative externalities. In cases of poor competition, the state implements consumer protection policies by organizing the provision of relevant information or intervening in the price-setting processes of private monopolistic producers. Therefore, the public sector is essential to ensure that society remains viable.