FISCAL POLICY AS AN INSTRUMENT FOR ECONOMIC REGULATION
Abstract
This article is devoted to the problems of deepening both theoretical and methodological bases for the fiscal policy’s preparation and implementation. The fact that fiscal policy acts as an effective regulation mechanism for macroeconomic equilibrium is considered. Regarding highly dynamic social development processes, the permanent improvements in fiscal policy (aimed to foster sustainable growth and social well-being) are investigated. Fiscal policy is disclosed as tool influencing economic development permanently. The actual scientific approaches highlighting the fiscal policy’s economic essence are analyzed and systematized. Regarding the European Union member-states over the 2013–2022 period, tax burden is analyzed. A special attention is given to the interrelation between tax burden and the real GDP per capita growth rates. The transformations in the tax structure (associated with the private property’s institutional development, the respective legal framework, the society’s income level, the essential modifications in the taxes, contributions and fees administration mechanism, and the peculiarities of the national economy) are investigated as well. The best transformation practices in the field of tax regulation are disclosed. The relevance of decrease in tax burden for the countries with emerging market economies is proved empirically and pointed out. Taking a complex of endogenous and exogenous factors, macroeconomic cyclicality, and the discretionary measures’ application potential into account, the toolkit for the fiscal policy’s implementation is determined. Additionally, the prerequisites for the relevant fiscal policy tools application are assessed. Regarding the phases of recession and post-crisis recovery, the implementation peculiarities of the fiscal development policy mix are clarified. A basic interrelation and interaction model for the fiscal policy’s structural components in both the short-run and the strategic perspective, including obligatory a set of the certain institutional principals, is proposed. A systemic approach to fiscal policy to ensure synchronic performance of its main activities (e. g., forecasting, planning, and projection) is proposed.
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