Fiscal Strategy as an Instrument of Economic Growth

Abstract

The purpose of the article is to justify the role of the fiscal strategy in ensuring macroeconomic stability and accelerating the pace of economic growth, disclose and substantiate its key objectives in the developed and transformational economies. The comparative and factor method allowed revealing the essence and role of the fiscal strategy as an instrument of economic growth, identifying peculiarities and substantiating approaches to the management of uncertainty of fiscal strategies, revealing the principles of the formation of the fiscal strategy and medium-term budget planning in Ukraine. Methodology. The substantiation of the role of the fiscal strategy in ensuring macroeconomic stability and accelerating the pace of economic growth, and definition of its key objectives are based on the generalization and systematization of the experience of countries with a developed and transformational economy. For this purpose, the analysis and evaluation of the fiscal policy were made, the peculiarities of the formation and implementation of fiscal strategies in the corresponding countries were determined. Results have shown that in developed countries, the GDP gap concept is used in order to use fiscal policy for countercyclical purposes. Budget sustainability is characterized by the ability of state and local government bodies to timely and fully finance budget expenditures and to support the share of budget deficits and public debt in the gross domestic product at an economically sound level. Budgetary stability is the constancy of budget architectonics in time. The essence of budget architectonics is the optimal ratio of budget, tax, social, monetary, and public debt components of the fiscal policy, which is a dynamic institutional process of its development and implementation in the relevant socio-economic conditions of the country's development. At an appropriate level of budget stability, the level of fiscal burden on the economy does not increase. Fiscal equilibrium -consistency of budget revenues and expenditures. Practical implications. The benchmark of the fiscal strategy in terms of economic transformations should be to ensure macroeconomic stability and accelerate the pace of economic growth by increasing the soundness of budget architectonics. Value/originality. Strengthening the influence of endogenous and exogenous factors on the financial and economic environment of the state, and negative demographic tendencies on the development of society necessitate the development of a fiscal strategy as a dynamic self-organizing one with a fractal dimension and scale, the system of long-term financial and economic measures, goals, principles, directions, tasks that are implemented by public administration, in a multiaspect dimension: budget transformations, configurations of fiscal institutions, socio-economic transformations. The fractal dimension implies the formation of a system of long-term financial and economic measures, goals, principles, directions, tasks of the country's fiscal policy based on the subsy...

Financial strategy in the conditions of economic transformations

“…Стігліца, В. Танзі [5, [12][13][14]. Питанням розробки фінансової стратегії за сучасних умов присвячено праці вітчизняних вчених: С. Кучеренко [6], Л. Лисяк [1], Л. Леваєвої [6], І. Лук'яненко [7], В. Макогон [8,[15][16], М. Пасічного [11], І. Чугунова [15][16] та інших. Разом з тим, в умовах економічних перетворень важливим є подальше удосконалення інституційних засад фінансової стратегії.…”

Theoretical and Methodological Principles of State Budget Formation

“…Відповідна рівновага необхідна між фінансово бюджетними та соц іально економічними показниками, результативними по казниками бюджетних програм, досягненням відповід ної суспільної мети та бюджетними видатками головних розпорядників бюджетних коштів. Зважаючи на стра тегію розвитку економіки, пов'язаної з підвищенням рівня її ендогенної складової, необхідні відповідні інсти туційні зміни у фінансово бюджетному регулюванні, зокрема у податковій політиці, державній політиці сфе ри видатків, запозичень, державного боргу [9].…”

Budget Planning as a Component Socio-Economic Development of the Country

“…Стігліца. Питання бюджетної політики досліджуються у працях вітчизняних вчених:Т.Канєвої [1,2,5], С.Качули [7], А.Мазаракі [2], В.Макогон [4,6], Л.Лисяк, І.Луніної , І.Лютого, М.Пасічного [1,5] , В.Федосова , І.Чугунова [1,2,[4][5][6][7] та інших.…”