ABSTRACT
This chapter explores the principal parts of the social benefits system and assesses to what extent they are, or are not, justified. It examines the general funding system of the social welfare system in Ukraine. The chapter discusses the most important categories of social expenditures and their sources of financing: child and maternity benefits from the state budget, the Pension Fund, the Social Insurance Fund, the Employment Fund, the Fund for Social Protection of Invalids, education, health care, and culture. Social allowances in cash and compensation for price increases are financed either from the state budget or from semi-independent extra-budgetary funds. In 1995, the Pension Fund and the Employment Fund were included in the state budget, as was the fund for the social protection of citizens who suffered in the aftermath of the catastrophe at the Chernobyl nuclear power plant.
