THE THEORETICAL AND ORGANIZATIONAL BASIS OF BUDGETARY POLICY

Abstract

The article deals with the theoretical and organizational foundations of budget policy from the point of view of the target, functional, systemic, and scientific approaches. According to the target approach, budget policy is considered in the context of its subordination to the system of higher hierarchical level of management. The latter manifests itself through the identification of the purpose of the budget policy, a clear understanding of logic and scientific substantiation of its practical achievement. The main objective of fiscal policy is to create preconditions for the socio-economic development of the state. At the same time, a particular attention should be paid to two circumstances: first, socio-economic development depends not only on budget policy (the monetary policy of the country is equally important), and secondly, the development process is characterized by cyclical fluctuations, the amplitude of which has a significant impact on the stability of the provision of socio-economic standards of life of people in the state. Therefore, according to the target criterion, budget policy is classified as strategic and tactical. The purpose of the strategic budget policy is to ensure the social and economic development of the states. The main objective of the tactical fiscal policy is to reduce the amplitude of cyclical fluctuations in the economy. At the same time, it is important to understand that both goals in practice should be realized simultaneously within a single integrated budget policy. The state of the effectiveness of budget policy from the standpoint of the target approach should be assessed by two criteria: the dynamics of socio-economic development and the dynamics of the size of the amplitude of cyclical fluctuations in the economy. The functional structure of budget policy, which consists of fiscal and regulatory (redistributive, stimulating, restraining, stabilizing) functions, is substantiated. The classification of the budget policy has been improved on the basis of “types of provision” (according to which the personnel, financial, information, and legal support is allocated), “the sequence of implementation” (in accordance with which the processes of formation and implementation of budget policy are singled out) and “structure of the mechanism of implementation” (on its based methods, forms, levers, tools, incentives, and sanctions of the mechanism of implementation of budget policy are determined). Structural elements of budget policy have been identified from a scientific point of view, which include: conceptual rationale, strategy, formalization and standardization in the legislative field, technology of practical implementation and a mechanism for evaluating the effectiveness.

Authors and Affiliations

Y. I. Myskin

Keywords

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  • EP ID EP562075
  • DOI -
  • Views 149
  • Downloads 0

How To Cite

Y. I. Myskin (2018). THE THEORETICAL AND ORGANIZATIONAL BASIS OF BUDGETARY POLICY. Проблеми системного підходу в економіці, 2(64), -. https://europub.co.uk/articles/-A-562075