FISCAL POLICY FOR ECONOMIC DEVELOPMENT

Abstract

Urgency of the research. Commonly, tax and budget instruments’ nature and degree of influence on the economic development depend on the share of GDP redistribution through the public finance system. But it isn’t the one and only influencing factor. The national fiscal architectonics model and the quality of state institutions are essential as well. Target setting. Under modern conditions of the global economy delayed growth rate, the further development of the statements on the possibility evaluation of discretionary fiscal policy measures implementation, their scope and composition to accelerate economic growth is advisable. Analysis of resent researches and publication. The questions of determining the fiscal policy role for the economic development regulation are explored in numerous works written by P. Arestis, G. Dell’Ariccia, A. Afonso, R. J. Barro, O. Blanchard, E. M. Engen, P. Mauro, V. Tanzi, I. Chugunov, D. Furceri etc. Uninvestigated parts of general matters defining. At the present development stage of financial relations, it is important to deepen the scientific research in the area of estimating the budget and tax instruments’ value and degree of influence on the country’s economic development dynamics. The research objective. The main aim of this article is to develop theoretical and methodological principles of fiscal policy formation in the context of providing the necessary prerequisites for a long-term economic growth. The statement of basic materials. Using the convergence of neoclassical and neo-Keynesian approaches as well as correlation and regression analysis methods, the influence of such factors as the level and the structure of taxation, the budget expenditures, the budget deficit, and the public debt on economic development was examined in this article. Conclusions. In modern conditions, fiscal policy has a significant regulatory impact on the economic processes by an integrated combination of fiscal architectonics instruments (taking into account the variation of composite structure models, time lags, and economic cycles).