Money, finances and credit

Budget policy under economic transformation

Economic Annals-XXI

Economic Annals-ХХI: Volume 158, Issue 3-4(2), Pages: 66-69

Citation information:
Chugunov, I., & Makogon, V. (2016). Budget policy under economic transformation. Economic Annals-XXI, 158(3-4(2)), 66-69. doi: https://doi.org/10.21003/ea.V158-15

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Igor Chugunov
D.Sc. (Economics),
Professor,
Honoured Science and Technology Worker of Ukraine,
Kyiv National University of Trade and Economics
19 Kyoto Str., Kyiv, 02156, Ukraine
chugunov5@mail.ru

Valentyna Makogon
PhD (Economics),
Senior Researcher,
Associate Professor,
Kyiv National University of Trade and Economics
19 Kyoto Str., Kyiv, 02156, Ukraine
makogonvd@ukr.net

Budget policy under economic transformation

Abstract. The paper substantiates that the strategic goals of socio-economic development foresee continuation and deepening of fiscal reforms in order to create and implement fiscal policies at a new level. This article analyses the main indicators of the fiscal policy of Ukraine and their correlation with the corresponding figures of the EU. Currently, the state budget deficit of Ukraine is one of the factors of inflation, which affects financial and economic stability, as the total public debt is forecasted for 2016 in the amount of 1.9463 trillion UAH (86% of the projected GDP).

The authors have defined the main directions of the budget policy improvement in terms of economic reforms, including the use of the budget deficit as a tool for financial and economic regulation. It is indicated that the components of the budget strategy should provide a synergistic effect in the budget system restructuring process to improve fiscal stability in the country. This goal can be achieved by defining priorities of the state financial policy, building adaptive institutional patterns of the budget system based on budget management, which allows optimising relationship between elements of the system and the cyclical nature of socio-economic development.

Keywords: Fiscal Policy; Budget Strategy; Budget Mechanism; Adaptive Institutional Architectonics of the Budget System

JEL Classification: H60; H61; H62

DOI: https://doi.org/10.21003/ea.V158-15

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Received 19.02.2016

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