The Role of Fiscal Policy in Ensuring the Competitiveness of the National Economy

Abstract

The article considers the role of fiscal policy in ensuring the competitiveness of the national economy. In particular, the essence of fiscal policy is defined and the basic scientific approaches to scientists’ understanding of the content of economic competitiveness are analyzed. It is substantiated that such competitiveness is directly related to the competitiveness of the fiscal system. Considering the structure of the fiscal system and the main directions of fiscal policy, the article determines that the tax system plays an important role in shaping such a policy. It is substantiated that the overall level of competitiveness of the country’s economy depends partly on the efficiency of tax competition in the country. To this end, the article deepens the theoretical provisions of understanding the essence of this type of competition, which is implemented on the basis of an analysis of approaches to its consideration available in the scientific literature. In general, the authors determine that tax competition, in the current realities, is an important and integral component of the entire process of forming an appropriate level of competitiveness of the country in the global markets of goods, services, raw materials and, especially, markets of capital. As the experience of many countries shows, a transparent and efficiently functioning tax system in the country helps to attract foreign investment in the real sector of the economy, in particular in high-tech spheres. So, the specific features of this type of competition are specified and it is found that the competitiveness of the tax system is determined through a comparative analysis of its parameters from the indicator of functioning of tax systems in other countries. Analyzing the essence of fiscal policy, peculiarities of its development and implementation, the article expands the theoretical foundations of the ontological relationship between such a policy and the overall level of competitiveness of the national economy. It is determined that, on the one hand, such a policy is a component of the economic policy of the State and, accordingly, an integral part of economic relations, and on the other hand, it can actively influence the functioning of other subsystems and objects that have the ability to exert external influence on the development of the national economy.

Keywords

• iscal policy
• national economy
• tax system
• tax competition
• competitiveness of the national economy