The Formation and Implementation of Budget Policy in Conditions of Crisis Transformations of Economy

Abstract

The article is aimed at developing of theoretical and methodological foundations of formation and implementation of budget policy of the country in conditions of crisis transformations of economy. The author’s attention is focused on transformation of approaches to the deficitary financing of economy. It is defined that the groundlessness of decisions and fiscal policy measures in the sphere of budget deficit management leads to worsening of the economic situation and undermining the financial stability. An analysis of correlation of the consumer price index and the State budget deficit is carried out, risks of unbalanced budget policy for economy are identified. The directions of funds that involved to finance the budget deficit in the period of 2001–2017 are examined. The fiscal rules functioning in the countries of the European Union are characterized, peculiarities of their application are determined. The expediency of introduction of the Institute of long-term budget strategy and medium-term budget planning is substantiated that will help to limit budget deficit and public debt, to achieve financial stability in society.

Keywords

• budget policy
• budget deficit
• public debt
• fiscal rules