№ 1/2016

Fìnansi Ukr. 2016 (1): 57–79https://doi.org/10.33763/finukr2016.01.057

TAX POLICY

PETRAKOV Jaroslav ¹

¹Chernihiv National University of Technology
OrcID ID : https://orcid.org/0000-0001-9123-0642

Assessment of fiscal pulses of tax tools

Economic recovery after tough and protracted recession is impossible without fiscal impulse. His scale and longevity depends not only from external environment, but from internal stance of economy, as faced macro shocks and ill channels of impulse transmission can become the barriers and absorb him. Important role in maintenance of regulatory instruments’ combination is devoted to communication between main groups of stakeholders (government, taxpayers, investors and international financial institutions). Article generalizes definition of fiscal impulse and contains his calculations for Ukraine during 2008-2015 period, based on renewed methodology of European Commission with output gap and budget semi-elasticity indicators. We found, that fiscal policy in Ukraine since 2011 got counter-cyclical, and in 2015 reached the peak of discretion. It is stated that high level of budget semi-elasticity, together with 3-year period of budget stabilization and existing internal risks with external threats for macro financial stability require continuation of fiscal consolidation pace. Article reasons that experience of developed countries specifies the long-term growth was preceded by structural reforms, and peak fiscal multipliers levels were reached during recessions. Taking this into account, Ukrainian tax reform should be integrated in more scaled campaign of structural reforms (especially in education, health care, pension system), long-term labor productivity renewal and creating attractive conditions for non-speculative investments in main and equity capital. Tax reform project should be based on pessimistic, not optimistic scenario, as overstated macro-indicators will generate false business and investment expectations, and continued recession instead of promised growth will totally ruin capital-owners’ trust.

Keywords:fiscal impulses, tax instruments, cyclically adjusted budget balance, the general government management sector, fiscal policy.

JEL: E64, H21, H62.

PETRAKOV J. . Assessment of fiscal pulses of tax tools / J. . PETRAKOV // Фінанси України. - 2016. - № 1. - C. 57-79.

Article original in Ukrainian (pp. 57 - 79)

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