Income redistribution as a tool to overcome the socio-economic stratification of society

This article addresses the issues regarding the use of the income redistribution mechanism as a tool for mitigating the living standards disparityamong citizens. Finding the most effective tools at the level of public policybecomes imperative due to the increasingly higher socio-economic stratification among citizens. Therefore, the author studies the existing approaches to defining “income” and “living standards” terms in order to establish objective reasons for the continued growth of such an asymmetric socio-economic situation, as well as to identify keyfactors behind widening of such an income gap. The paper identifies the main patterns in the ratio of the studied categories, determines the indicators characterizing the level of income and analyzes the main values of such indicators in terms of the social and market approach. Following this analysis, the authors study all the regulatory metrics used for measuring living standards. These metrics represent an array of socio-economic indicators and minimum social standards funded from the budgets of different levels through the targeted financing of public regulatory obligations against state guarantees. The authors also identify the nature of such metrics and the main mechanisms of their implementation, as well as examine government control tools based on their use, including target programs and mitigatory actions being implemented with regard to socio-economic relations and aimed at improving the qualityof life. In order to create conditions for mitigating the social-economic asymmetry, the authors define the “state budget system” term, which also includes social security. The researchers formulate the key public policydevelopment areas, which will be instrumental in overcoming the income disparity among the economically active population.