Budgetary policy of Ukraine is a basis of macroeconomic stability

Tetyana Bogolib
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Ukrainian Journal Ekonomist, 2013, issue 4, 13-16

Abstract: The article analyzes the state of budgetary policy, its interconnection with a macroeconomic stability; it reveals that system problems of economic development led to the macroeconomic disequilibrium. The structure of budget expenditures is not optimal for the stimulation of economic development. The efficiency of realized budget expenditures is often low, the obtained social and economic effect is incommensurate with a volume of funds used for these or other purposes. Inter-budget relations are not directed to the stimulation of local self-government authorities to create conditions for business and innovation activities that are a basis of increase in income of local budgets and contribute to the decentralization of budgetary process. Budgetary policy must be a more efficient instrument of the state social and economic policy, and mechanisms of the state social and economic policy must have a reliable budget provision. Improvement of local budgeting for the purpose of transition to a program budget will allow to differentiate and to realize efficiently areas of responsibility of the public authority and local self-government authorities regarding local budgeting in the interests of social and economic development of territories. The budget is one of the main instruments of macroeconomic policy. The impact is made on economic growth, investment attractiveness through the budget. Having a good budgetary system one can reach the macroeconomic stability. The solution to the problems of macroeconomic stability must be implemented under conditions of continuity of budgetary policy aimed at the macroeconomic stability, long-term balance and steadiness of budgetary system, decrease of budget dependence on foreign economic conjuncture. The article demonstrates the need for adoption of budgetary policy strategy which will be based on the formation of program budget, provision of transparency and openness of a budgetary process through the creation of “transparent budgets”, increase of efficiency of budget expenditures, necessity to create the National Prosperity Fund.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:uje:journl:y:2013:i:4:p:13-16

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