Modern Economics (Jun 2018)
BUDGET POLICY AS AN INSTRUMENT FOR FINANCIAL SECURITY OF UKRAINE
Abstract
Introduction. Ensuring sustainable and stable development of the state financial sector is a priority task in the current conditions of functioning of the economy. Not least in the economic space is the budget system, which, when planning and distributing existing and future revenues and expenditures, can completely change the present state of the economy, both for the better and for the worse. The question arises about the qualitative assessment of the impact of fiscal policy on Ukraine’s financial security, the advantages and disadvantages of its implementation and strategic opportunities. Purpose. Budget policy should work to create favorable conditions for improving the socio-economic state of the country and solving problems that impede the development of the state financial sector. There is a need to create a balanced distribution and redistribution of financial and non-financial assets in order to meet the needs of Ukrainian citizens and achieve the necessary level of financial security. The goal is to reveal the theoretical and practical principles of fiscal policy as an instrument for achieving the country’s financial security. Results. The dynamics of the projected indicators of the State Budget for 2020-2021 were analyzed, it was revealed that the proposed project plans to increase the gross domestic product of Ukraine at the level of 11.9%, which is a possible positive trend. The share of gross domestic product real in growth will increase projected in 2021 relative to 2020 by 2,2%. The consumer price index will decrease by 0.2%, which will lead to an increase in own savings of the population. The unemployment rate will also decrease by 2.4%, which is quite positive in the dynamics of the development of the fiscal policy of Ukraine. The exchange rate of the hryvnia to the US dollar will increase by 1.3%, which is associated with an increase in inflation. Conclusions. The conducted research proves that fiscal policy should ensure the financial security of the state, and therefore it is simply necessary to control and stimulate the development of this sphere. The state policy in the area of fiscal policy and financial security strengthening should include targeted activities of state authorities, public administration and local self-government on the creation of a unified crisis-management strategy for the development and stabilization of the budget sphere to ensure the social and economic development of Ukraine.
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