STATE SUBSIDIES TO BUSINESS: APPROACHES TO CONCEPTUALIZATION

Subject. Subsidies as a fiscal instrument used to support socially significant industries, as well as to stabilize the level of domestic prices.
The purpose of the study is to develop approaches to the theoretical and methodological substantiation of the principles for assessing the effectiveness of state subsidies to business entities.
Results. The possibility of using the public welfare function and the public choice function to assess the targeted effectiveness of state aid is substantiated. Approaches to the theoretical coverage of state financial assistance to business entities through subsidies based on the methodology of welfare economics are developed.
Conclusions. Theoretical and methodological foundations for developing a procedure (definition of interests and motives; ranking; comparison; redistribution; choice; determination of effectiveness) for the targeted selection of a business entity to provide fiscal assistance are proposed.