THE NEED FOR INDEXATION OF THE ALLOWANCES OF MILITARY PERSONNEL AND THE SALARIES OF CIVIL SERVANTS IN THE UKRAINE

Abstract

Introduction. In conditions of high inflation, household incomes tend to fall. Indexation of monetary incomes is one of the measures to ensure the growth of household incomes. Indexation of monetary incomes of citizens (salaries of military personnel, salaries of civil servants and employees) in Ukraine is important for ensuring social justice and preserving the purchasing power of the population. The decision to index citizens' incomes is taken at the state level and may be part of the state's social and economic policy. The purpose of this article is to examine the need for indexation of military and civil servants' salaries as an important aspect of monetary compensation and social protection. Methods. The article uses general scientific and special methods of scientific cognition, in particular, the dialectical method, formal logical method, correlation analysis, system-structural method. Results. The article states that the indexation of cash incomes of Ukrainian citizens is important for ensuring social justice and preserving the purchasing power of the population. Indexation of cash incomes is useful in cases of inflation, to establish social justice, to maintain economic stability, political and social peace. The article examines the concept and peculiarities of indexation of military salaries. The author proves the necessity of indexation of incomes of citizens and especially of military personnel, since incomes in 2022 will decrease by 5% compared to 2021, and in 2023 will increase by only 18%. However, when compared to actual expenditure, it was found that revenues should have increased by 21.2% in 2022 and by 14% in 2023, indicating the need for income indexation. The author notes that it is important to ensure that the indexation of the monetary income of the population is aimed at increasing real purchasing power and does not place an unnecessary burden on the budget. Conclusion. In order to solve the problems of indexation, the author suggests the introduction of budget planning, efficient use of resources and negotiations with trade unions. Indexation should be efficient and as rational as possible. It should reduce the burden on the budget.