THE ROLE AND SIGNIFICANCE OF THE SOCIAL INSURANCE FUND IN THE ECONOMY

• Ubaydullayeva Oydinoy Khabibullayevna

  Tashkent Transport Technical School Department of Accounting and Business

  Author

This article examines the role and significance of the Social Insurance Fund in the economy through the prism of social protection, labor market stability, income redistribution, and sustainable economic development. Social insurance funds serve as an essential financial institution that protects employees and socially vulnerable groups against temporary loss of income caused by sickness, disability, occupational injury, unemployment, maternity, and retirement-related risks. The study argues that the effective functioning of such a fund contributes not only to the welfare of individuals but also to macroeconomic stability, since it supports consumer demand, reduces social inequality, and strengthens public confidence in state institutions. Particular attention is given to the economic nature of the fund, its revenue formation mechanisms, expenditure directions, and its relationship with budget policy, employment policy, and human capital development. The article also highlights that the Social Insurance Fund performs a dual function in the economy: on the one hand, it acts as a mechanism of financial compensation and risk sharing, while on the other hand, it operates as a stabilizing factor that mitigates the negative effects of economic shocks. In vocational and technical education contexts, understanding the economic significance of social insurance is especially important for students specializing in accounting, business, transport economics, and public finance, because it forms practical knowledge about payroll systems, employer contributions, labor relations, and state social obligations.

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