THE ROLE OF THE TAX SYSTEM IN ENSURING SOCIO-ECONOMIC SECURITY AND COMPETITIVENESS OF THE UKRAINIAN ECONOMY IN THE CONTEXT OF DIGITALIZATION

Abstract

In today's conditions, socio-economic security reflects the stability of the economy, the directions of economic growth, guarantees the protection of the social interests of the population from threats of the market environment and, accordingly, ensures the effective functioning of the state. Along with this, an important feature of socio-economic security is the timely identification and neutralization of the negative impact of market environment factors, threats and risks that may affect the economic potential of the country. It has been established that economic security has a direct impact on the level of competitiveness of the country, as it ensures economic growth, rational use of resources, and the formation of competitive advantages in the international arena. As for social security, it determines the protection of the population, its social support, and contributes to the growth of social welfare. It has been proven that one of the key indicators of economic security is the stability of the flow of funds to the state and local budgets, which depends on the efficiency of the tax system. It is substantiated that the efficiency and stability of the tax system has an impact on ensuring socio-economic security through guaranteeing and controlling the timeliness of tax revenues to various budgets, which in turn are used to finance the main spheres of society. It is found that the state timely finances social programs, education, healthcare, social protection, maintains an appropriate level of financial stability due to the timeliness of tax revenues and, accordingly, the efficiency and transparency of the tax system, and the effectiveness of the work of tax authorities. Given economic instability, the rapid pace of globalization and digitalization, it has been determined that the tax system is a tool for ensuring socio-economic security, which guarantees the competitiveness of the Ukrainian economy, and also provides counteraction to internal and external threats. It was determined that the key areas of influence of the tax system on socio-economic security are: support for small and medium-sized businesses; regulation of economic activity; introduction of tax benefits to equalize social disparities; stimulation of innovation and investment activity; timeliness of tax revenues and ensuring financing of the expenditure part of the budget. The impact of the tax system on ensuring socio-economic security was studied and directions for its improvement were formed.