Evaluating the effectiveness of public finance used for social protection of internally displaced persons

The increasing number of internally displaced persons (IDPs) in wartime Ukraine leads to growing problems in social protection funding. Under these circumstances, the evaluation of the effectiveness of public finance use is of increasing importance. The study aims to evaluate the effectiveness of pu...

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Main Authors: Yuriy Bilan, Halyna Yurchyk, Natalia Samoliuk, Halyna Mishchuk
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2025-01-01
Series:Public and Municipal Finance
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Online Access:https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21466/PMF_2025_01_Bilan.pdf
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author Yuriy Bilan
Halyna Yurchyk
Natalia Samoliuk
Halyna Mishchuk
author_facet Yuriy Bilan
Halyna Yurchyk
Natalia Samoliuk
Halyna Mishchuk
author_sort Yuriy Bilan
collection DOAJ
description The increasing number of internally displaced persons (IDPs) in wartime Ukraine leads to growing problems in social protection funding. Under these circumstances, the evaluation of the effectiveness of public finance use is of increasing importance. The study aims to evaluate the effectiveness of public finance for internally displaced persons’ social protection, adapting the KPI methodology for analysis on the national level. The effectiveness is considered following the OECD approach as the extent to which the intervention achieved its objectives and results. At macrolevel of research, the integral indicator was developed based on indicators of input (financing of social protection programs), output (involvement of IDPs in social programs), activity (funding per recipient and multiplicative effect in GDP growth), mechanism (administrative costs for achieving results), and control (effectiveness of IDPs’ social protection compared to other demographic groups). Thirty indicators in total were used (e.g., budgetary funding allocated for housing assistance; budget expenditures on staff salaries of the authorities responsible for certain programs; coverage rate of unemployed IDPs receiving vocational training). The essential distance from the maximum level of expected results (1.0) allows concluding the low effectiveness in this area of public finance use: from 0.330 in 2020 to 0.668 in 2023. Gaps are evident in each direction, especially in input performance (the highest value did not exceed 0.370). The best results were achieved in housing funding and employment governance. The proposed approach is useful for analyzing gaps and identifying opportunities to improve the management of other social programs.
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spelling doaj-art-d159b5460c1d4f059c4ad7d2b6182dd82025-01-24T15:01:04ZengLLC "CPC "Business Perspectives"Public and Municipal Finance2222-18672222-18752025-01-01141234010.21511/pmf.14(1).2025.0321466Evaluating the effectiveness of public finance used for social protection of internally displaced personsYuriy Bilan0https://orcid.org/0000-0003-0268-009XHalyna Yurchyk1https://orcid.org/0000-0003-1013-6940Natalia Samoliuk2https://orcid.org/0000-0001-8693-8558Halyna Mishchuk3https://orcid.org/0000-0003-4520-3189Doctor of Economics, Professor, Kautz Gyula Faculty of Business and Economics, Széchenyi István University, HungaryPh.D. in Economics, Associate Professor, Department of Labour Resources and Entrepreneurship, National University of Water and Environmental Engineering, UkrainePh.D. in Economics, Associate Professor, Department of Labour Resources and Entrepreneurship, National University of Water and Environmental Engineering, UkraineDoctor of Economics, Professor, Faculty of Economics and Business Administration, Vilnius University, LithuaniaThe increasing number of internally displaced persons (IDPs) in wartime Ukraine leads to growing problems in social protection funding. Under these circumstances, the evaluation of the effectiveness of public finance use is of increasing importance. The study aims to evaluate the effectiveness of public finance for internally displaced persons’ social protection, adapting the KPI methodology for analysis on the national level. The effectiveness is considered following the OECD approach as the extent to which the intervention achieved its objectives and results. At macrolevel of research, the integral indicator was developed based on indicators of input (financing of social protection programs), output (involvement of IDPs in social programs), activity (funding per recipient and multiplicative effect in GDP growth), mechanism (administrative costs for achieving results), and control (effectiveness of IDPs’ social protection compared to other demographic groups). Thirty indicators in total were used (e.g., budgetary funding allocated for housing assistance; budget expenditures on staff salaries of the authorities responsible for certain programs; coverage rate of unemployed IDPs receiving vocational training). The essential distance from the maximum level of expected results (1.0) allows concluding the low effectiveness in this area of public finance use: from 0.330 in 2020 to 0.668 in 2023. Gaps are evident in each direction, especially in input performance (the highest value did not exceed 0.370). The best results were achieved in housing funding and employment governance. The proposed approach is useful for analyzing gaps and identifying opportunities to improve the management of other social programs.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21466/PMF_2025_01_Bilan.pdfinternally displaced personspublic finance managementsocial policysocial protection
spellingShingle Yuriy Bilan
Halyna Yurchyk
Natalia Samoliuk
Halyna Mishchuk
Evaluating the effectiveness of public finance used for social protection of internally displaced persons
Public and Municipal Finance
internally displaced persons
public finance management
social policy
social protection
title Evaluating the effectiveness of public finance used for social protection of internally displaced persons
title_full Evaluating the effectiveness of public finance used for social protection of internally displaced persons
title_fullStr Evaluating the effectiveness of public finance used for social protection of internally displaced persons
title_full_unstemmed Evaluating the effectiveness of public finance used for social protection of internally displaced persons
title_short Evaluating the effectiveness of public finance used for social protection of internally displaced persons
title_sort evaluating the effectiveness of public finance used for social protection of internally displaced persons
topic internally displaced persons
public finance management
social policy
social protection
url https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21466/PMF_2025_01_Bilan.pdf
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AT nataliasamoliuk evaluatingtheeffectivenessofpublicfinanceusedforsocialprotectionofinternallydisplacedpersons
AT halynamishchuk evaluatingtheeffectivenessofpublicfinanceusedforsocialprotectionofinternallydisplacedpersons