Bìznes Inform (Jan 2019)
Transforming the Fiscal Policy and Its Impact on the Economic Potential of the State
Abstract
The article is aimed at allocating the aspects and identifying the negative factors that directly impact the formation and implementation of the fiscal policy of Ukraine. Fiscal policy of the State is an important essential component of the State regulation of the economy. The article analyzes and allocates that measures of fiscal policy should be determined by a certain goal (fight against inflation, stabilization of the economy, ensuring the economic growth). It is specified that it is the State that regulates the aggregate demand and the real national income through the State expenditures, transfer payments and taxation. It is proved that reduction of tax rates and reforming of tax legislation according to the European standards will help to revive entrepreneurial activity and in the end will not reduce, but on the contrary, increase tax revenues to the State budget. In modern conditions, without taking into view the given features, it is impossible to efficiently transform fiscal policy and obtain a high result of its implementation.
