BUDGET AND TAX POLICY OF UKRAINE: FEATURES AND AREAS OF IMPROVEMENT

Abstract

Under conditions of economic instability, legislative changes, and political situations, the stability of tax revenues plays an important role as the main source of income for the state and local budgets. It has been determined that an important task within the framework of budget policy is to ensure the rational formation, distribution of financial resources, increase in revenues, formation of budget expenditures, coverage of public debt, and reform of the tax system, which will contribute to the restoration of enterprise operations, improvement of the population's living standards, and economic development. It is established that tax policy plays an important role in organizing the process of tax assessment, payment, and collection, implementing their legal regulation, increasing the efficiency of the tax system, and creating conditions for business development by reducing the tax burden, which will contribute to economic recovery. The importance of pursuing a balanced fiscal policy that impacts macroeconomic indicators and the overall state of the economy is proven. The article analyzes existing scientific approaches to defining the terms "budget policy" and "tax policy" and identifies their role in ensuring economic development and social welfare. The features of Ukraine's fiscal policy are investigated, and the structure of budget revenues is analyzed. An analysis of public debt and the dynamics of external and internal debt is conducted. The forecast indicators of Ukraine's fiscal policy are analyzed, and international experiences in fiscal policy are considered. The problems of Ukraine's fiscal policy are identified, and directions for its improvement are formulated: the implementation of tax incentives (taking into account the consequences of military actions); the formation of support programs for medium and large businesses; improvement of legislation to create conditions for attracting foreign investments; enhancement of investment policy and tax legislation considering the experience of EU countries; provision of tax credits for enterprises conducting research and development; development of support programs for enterprises of strategic importance; drafting a plan of measures to repay external and internal debt; and increasing control over the use of local budget funds.