The State’s Fiscal Policy to Achieve Economic Equilibrium and to Overcome Economic Imbalance

Abstract

Abstract: The publication is aimed at forming a methodical approach to the management of economic cycles with use of fiscal instruments, which would ensure the achievement of an economic equilibrium and overcome of the economic imbalances. The article defines that the strategy of economic development and the anti-cyclical regulation will be effective only upon condition of an efficient mixing of both moral and ethical relations between all subjects of socio-economic processes in the country. In order to achieve the best expected results in this plane, first of all, it is necessary to establish the high-quality inter-institutional, inter-structural, intergovernmental relations, to develop an effective partnership of business and the regulating government bodies in the economic and social spheres. Because only transparent partnerships, clear steps of the government, their comprehensive interpretation and justification of their use are the key to the qualitative economic reforms, towards ensuring effectiveness of the applied anti-cyclical fiscal instruments in Ukraine. The obtained results of the scientific research may be useful for scholars and practitioners engaged in research on the problems of anti-cyclical regulation of the economy, financial policy of the State in general and fiscal policy in particular.

Keywords

• fiscal policy
• discretionary/non-discretionary fiscal policy
• anti-cyclical/pro-cyclical fiscal policy
• anti-cyclical regulation of economy
• GDP
• public debt
• government revenues
• government spending
• socially oriented (paternalistic) fiscal policy
• liberal fiscal policy