INFLUENCE OF BUDGET POLICY ON ECONOMIC GROWTH OF THE COUNTRY

V Makohon

doi:10.18371/fcaptp.v1i36.227771

Abstract

Abstract. The article describes the essence of budget policy. Determined its role in ensuring macroeconomic stability and accelerating economic growth. The quantitative and qualitative impact of the budget regulation system on the economic environment has been characterized. It is substantiated that purposeful budget regulation allows accelerating or slowing social and economic processes, ensuring achievement of certain strategic goals and objectives. An estimation of the impact of budget policy on economic growth, in particular, on the justification of the interrelation of the share in the GDP of income, including direct and indirect taxes; expenses, including social protection and social security, economic activity; direct state and guaranteed debt with real GDP in Ukraine. For 2009—2019, the share of gross income and expenditure, deficit and debt in the countries of the European Union in the GDP was determined; income, expenses, deficit of the consolidated budget, direct state and guaranteed debt in Ukraine. The substantiation of the provision on the development of institutional foundations for fiscal policy-making based on the necessity of adapting the set of mechanisms of functioning of the budget regulation system to the conditions of development of the financial and economic environment and the cyclical nature of economic processes; the position regarding the formation of budget policy based on a forecast assessment of budgetary parameters, based on the projected macroeconomic indicators of socio-economic development of the country, tools and levers of tax policy. The priority directions of budget policy in the conditions of economic transformations are determined, in particular, to strengthen the investment and innovation budget component, to improve the structure of tax revenues, to maintain a safe level of public debt and budget deficit, to improve the quality of public debt management and to determine strategic guidelines for the structure of the debt portfolio. Keywords: budget, budget system, budgetary regulation, budget policy, economic growth. Formulas: 6; fig.: 0; tabl.: 3; bibl.: 16.

Highlights

Budget policy plays an important role in stimulating economic processes by directing public financial resources to modernize the economy and its innovative renewal
An effective budget policy is an important tool for ensuring macroeconomic stability and accelerating economic growth
The basis of sound budget policy is budget forecasting, which determines the prospects for the formation and, the use of financial resources of budgets of different levels

Summary

Introduction

Budget policy plays an important role in stimulating economic processes by directing public financial resources to modernize the economy and its innovative renewal. The cyclical nature of economic processes necessitates the coordination and adaptability of long-term regulatory measures of budget policy to internal and external changes in the economic environment In this regard, it is important to assess in a timely and balanced manner the impact of budget policy on macroeconomic stability and accelerating economic growth. The share of public debt in GDP at 90-100% has a negative impact on long-term economic growth. Taking into account the achievements of previous research, at the same time, important issues are the development of new approaches to the formation of budget policy, the disclosure of its priorities, taking into account globalization processes, the assessment of its impact on economic growth. Assessing the impact of budget policy on economic growth is an important component in the process of substantiating the strategic objectives of the country's development.

United Kingdom

Conclusions