Chairman of the Budget Committee of the Verkhovna Rada of Ukraine
Doctor of Economics, Professor, Head of the Finance Department of Kyiv National University of Trade and Economics
FISCAL POLICY OF ECONOMIC DEVELOPMENT
Background. Fiscal policy is one of the important instruments of state regulation of the economy. Success of regulatory functions of the state and economic development depend from an effective budget process. However, fiscal policy provides insufficient economic development and ineffective institutional transformation. Given the above, the development of an effective fiscal policy that takes into account the main directions of economic development relevant.
Review of scientific sources on the chosen topic allowed us to determine that economic essence of fiscal policy as part of financial regulation of social and economic development and administrative and territorial entities is to use a set of institutional mechanisms of budgeting considering the degree of dynamic balancing of financial, economic, social relations of social environment. Development and conduct of fiscal policy is a dynamic process which is affected by the state of internal and external economic environment. Fiscal policy should be aimed at socio-economic development of countries and regions and creating conditions for the provision of quality public services. However, it is important to identify the directions how to improve the efficiency of of fiscal policy in terms of economic reforms. The above forms the basis of the aim of the research.
Materials and methods. The scientific articles used a combination of methods and approaches, allowing to implement conceptual integrity of the study. The systematic and structural methods were used to disclosure fiscal policy as a tool for economic development; synthesis, factor and comparison in determining the main directions of improving the efficiency of fiscal policy in terms of economic transformation.
Results. The role of fiscal policy as an important instrument of the state regulation of the economy was defined, which should be based on long-term program of economic and social development. Streamlining the regulatory objectives of fiscal policy enables to achieve the proper balance of the redistribution of financial resources in the community, the satisfaction of social needs. It is necessary to provide a mechanism to turn the budget into effective means of social and economic strategies, increasing efficiency of public funds. Social budgetary policy priorities are to reduce market mechanism of uneven income distribution to solve the poverty problem. Creating fiscal policy institute that includes the development of appropriate rules, regulations, institutions, contributes to solving the problems that exist in public finance. Architectonics of fiscal policy should create appropriate institutional conditions of the financial model of society, which together form a mechanism impacting economic growth, contribute to the welfare of the society.
It was determined that the budget system has to be constantly improved and adapted to the institutional transformation of the economic environment, dynamics and trends of social development, economic cyclicality with the need to increase the level of balance and efficiency of public finances. The efficiency of fiscal policy is defined as the excess of costs budget fiscal impact revenue.
Conclusion. Fiscal policy, which is one of the important tools of financial strategy, is defined by the objectives of socio-economic development of society and should be directed to the relevant economic transformation, endogenous growth factors. The basis for long-term economic development are measures of state regulation, which are realized through the use of effective economic mechanisms. The budget as an effective component of state economic regulation should be consistent with the main directions of economic and social development of the country. Fiscal policy significantly affects the creation of appropriate conditions for improving the efficiency and competitiveness of the national economy, improving the investment environment, ensuring an appropriate level of socio-economic development based on a balanced and transparent public finances, which is implemented through the institutions of budget planning, inter-governmental regulation and state financial control.
Keywords: public finance, budget system, budget management, budget.
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