Fiscal Regulation of National Economies' Sustainable Growth

TitleFiscal Regulation of National Economies' Sustainable Growth
Publication TypeJournal Article
Year of Publication2020
AuthorsIefymenko, TI
Short TitleNauka innov.
SectionGeneral Problems of the Modern Research and Innovation Policy
Introduction. One of the key contradictions in the modern market relations is associated with the phenomena of deglobalization. It is the practice of the European Union with respect to supranational influence on fiscal relations of economic agents and the “trumponomics” that have confirmed the need to further increase the effectiveness of international tax and budget regulatory institutions.
Problem Statement. The modern fiscal policy in market economies aims at regulating the distribution of resources between the private and public sectors with minimal impact of inflationary or deflationary fluctuations on the producer price index. Government actions that mobilize market potential shall include elements of fiscal reform related to a set of targeted measures to reduce the growth rate of the monetary aggregates.
Purpose. To identify the main directions of a systemic strengthening of fiscal functions of governments, primarily, in countering the threats of destabilization in the presence of dynamic phenomena of globalization and their further multiplication.
Мaterials and Мethods. The methods of position-time situational analysis and synthesis have been used; the dynamics of statistical macroeconomic indicators (GDP) within the framework of various systematic model assessments of the tax reform impact have been compared.
Results. Both the positive and the negative experience of implementing programs for international financial institutions and governments of different countries aim at achieving the goals of full employment and sustainable development with the help of revenue and budgetary means of demand management and established monetary leverages have been considered. Recommendations for improvement of regulatory fiscal effects on Ukraine’s socio-economic system (SES) stability growth have been justified in the light of current trends of change management.
Conclusions. Rational tax policy shall provide for the improvement of legislative mechanisms in combination with the formation and use of costs, stimulating the saving of resources with a view to their best practical use. In the context of globalization and increasing threats of information asymmetry with the existence of various technological paradigms in the SES, regulations shall be based on establishing transparent “game rules”. Mandatory payments shall come from sources of business income rather than from capital, because the use of the latter for paying taxes is contrary to the interests of investors and the goals of sustainable growth.
Keywordsdebt, deglobalization, fiscal regulation, investment, reforms, savings, taxation