A MECHANISM FOR THE ALLOCATION OF SOCIAL ASSISTANCE EXPENDITURE IN TIMES OF ECONOMIC CRISIS

Increased social spending is in connection with growth procyclical reverse. The conjugation effect of increased spending on social assistance with other measures related to tax adjustments may be offset by grant schemes of social assistance benefits compensatory role. The main purpose of this study is to develop a mechanism for the allocation of social assistance expenditure that lead to efficient economic policy response in times of economic crisis. The study aims at the model scheme to reduce social procyclical effect of granting aid to poverty and contribute to economic growth. It proposes financing costs both in budgetary allocations but also in attracting private funds to use the work of potential beneficiaries.