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The Mechanism Of Fiscal Policy

Author

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  • Lidiia Fedoryshyna

    (Vinnytsia National Agrarian University, Ukraine)

Abstract

The purpose of this article is to study fiscal policy, which is one of the methods of regulating the country's macroeconomic policy. Theoretical approaches of scientists to the definition of the term "fiscal policy" are investigated. The contents and principles of the functioning of the mechanism of fiscal policy are disclosed. Method. Theoretical approaches to the definition of mechanisms and discrete components of the fiscal policy of the state and its criteria characteristics have been developed. The research has been based on the use of a systematic approach to the consideration of fiscal phenomena, on the fundamental principles of economic theory, systems theory, theory of finance, theory of taxes, etc. Results. It is observed that the budget deficit and the national debt are closely linked: the increase in the budget deficit leads to an increase in the national debt. But the absolute magnitude of the budget deficit, and therefore of the public debt, does not provide enough information for economic analysis. It is necessary to know what processes the budget deficit is serving, what changes in the reproduction cycle it reflects. It is also very important to measure changes in public debt in relation to changes in GDP. In addition, the tax burden is increasing as a result of these changes. Value/originality. It is determined that along with the expected changes in the methodology of calculation and procedure of tax payment, taxpayers are also concerned about the question of changing the tariff grid by the total amount of taxes due in absolute terms and in relation to the volume and resultant indicators of production activity (revenue, profit). An innovative tariff policy has been proposed and opportunities for using non-traditional agricultural insurance products have been revealed. Recommendations to improve the fiscal policy of the state have been made. The conceptual platform for harmonizing the mechanism of fiscal policy regarding economic entities is substantiated.

Suggested Citation

  • Lidiia Fedoryshyna, 2020. "The Mechanism Of Fiscal Policy," Three Seas Economic Journal, Publishing house "Baltija Publishing", vol. 1(1).
    • Handle: RePEc:bal:3seasj:2661-5150:2020:1:1:5
    DOI: 10.30525/2661-5150/2020-1-5
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    References listed on IDEAS

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    1. Kubicek, Jan, 2005. "Contribution rates to funded pension systems in the new member countries," Research in International Business and Finance, Elsevier, vol. 19(2), pages 266-280, June.
    2. Yuliia Aleskerova & Tetiana Mulyk & Lidiia Fedoryshyna, 2018. "Improving Credit Protection Analysis Methods Reports Of Main Agricultural Enterprises," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(2).
    3. Bettendorf, Leon J.H. & Heijdra, Ben J., 2006. "Population ageing and pension reform in a small open economy with non-traded goods," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2389-2424, December.
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    Cited by:

    1. Gia Zoidze & Shota Veshapidze, 2022. "Transformation Of Economic Policy Priorities Under Covid-19," Three Seas Economic Journal, Publishing house "Baltija Publishing", vol. 3(2).
    2. Cristea Loredana Andreea & Voda Alina Daniela & Ungureanu Dragos Mihai, 2021. "Fiscal Policy And The Conceptual Mechanism Of Fiscal System," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 80-86, April.

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    More about this item

    Keywords

    methodology; analysis; fiscal policy; mechanism; macroeconomic regulation; policies of built-in stabilizers; economic; tax;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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