Economic Efficiency of the Digitalization of Social Services to Improve the Targeting of Government Benefits

Abstract

The relevance of this study is determined by the need for a comprehensive economic justification of the feasibility of digitalizing public social services under conditions of limited budgetary resources and increased requirements for transparency in the targeted allocation of benefits. The aim of the article is to substantiate the economic efficiency of the digitalization of social services in Ukraine through an analysis of the technological platforms Diia and the Unified Information System of the Social Sphere, to evaluate mechanisms for improving the targeting of government benefits, and to identify directions for enhancing the performance of digital systems.

Methods. To achieve the stated aim, a systematic analysis of regulatory documents and technical reports on the functioning of the Diia platform and the Unified Information System of the Social Sphere was conducted, with selection criteria limited to official sources from the Ministry of Social Policy of Ukraine, the Ministry of Digital Transformation of Ukraine, and verified scientific publications from 2023–2025. A comparative analysis of administrative cost indicators before and after the implementation of digital platforms was performed. In addition, a conceptual analysis of costs and socioeconomic effects of digitalization was carried out through the comparison of quantitative indicators with published reports of the OECD and the Ministry of Social Policy of Ukraine.

Results. The findings indicate that the implementation of the Unified Information System of the Social Sphere, initiated in 2021, ensured coverage of more than 17 social assistance programs, integration of 15 databases, and operational support for over 15,000 professionals. The Diia platform reached approximately 22 million users and provided access to more than 140 services. According to data from the Ministry of Social Policy of Ukraine and a comparative analysis of OECD reports from 2024, administrative costs associated with application processing decreased from 8–10% to 2–3% of total social expenditures, while processing time was reduced by 40–50%.

Conclusions. It has been demonstrated that integrated digital platforms constitute an economically efficient instrument for managing social services. The scientific novelty of the study lies in the substantiation of a three-level system of efficiency assessment indicators encompassing cost, performance, and inclusiveness dimensions, as well as in the identification of systemic barriers to implementation. The practical significance of the results consists in their applicability for public administration bodies in planning the digital transformation of the social sector. Future research perspectives are associated with the development of quantitative models for assessing long-term efficiency and with improving methodological approaches to analyzing the impact of digitalization on service inclusiveness for vulnerable populations.