№ 11/2016

Fìnansi Ukr. 2016 (11): 109–0

FINANCES OF THE INSTITUTIONAL SECTORS

NEPRAN Andriy ¹

¹Kharkiv National Automobile and Highway University
OrcID ID : https://orcid.org/0000-0002-8329-7123

The improvement of public policy on modernization of fixed production assets

This paper analyzes the process of reproduction of fixed assets and identifies shortcomings in providing financial investment. It is established that the main reason for the disruption of the modernization of fixed assets is that about 80% of the depreciation fund is not used by enterprises to finance capital investments. As a result of copyright payments, key factors that led to disruption of fixed assets are identified and the extent of losses is assessed. As calculations show, about 30 billion UAH depreciation fund is not returned to enterprises due to an increase in receivables. Today, a significant amount of the financial resources of the real sector is used to finance investments in various financial assets, which significantly limits financial investment potential. These losses can be added to the part of the depreciation fund losses resulting from the growth of inflation in the production market. The study of the actual state of the investment process makes it possible to assert that the priority of the public policy on modernization of fixed assets should be the improvement of the technological structure of capital investments. In the modern context, the statement has substantial grounds because the analysis of the technological structure of capital investments of enterprises by economic activity shows that the share of expenditure on improvement, reconstruction and modernization of fixed assets in total capital investment is low and does not meet the requirements of their renovation. Fiscal policy tools to increase investments in the active part of fixed assets of real economy sector enterprises indexed are developed. The introduction of tax benefits from income tax when making capital investments will significantly increase the financial resources of the real sector of economy. To limit losses of the budget it is proposed to deprive financial intermediary sector enterprises of the opportunity of their application. These state measures are believed to facilitate the renovation of fixed assets of the economy.

Keywords:capital assets, depreciation, capital investments, depreciation policy, income, own sources, renovation of capital assets, amortization.

JEL: E62, G18

NEPRAN A. . The improvement of public policy on modernization of fixed production assets / A. . NEPRAN // Фінанси України. - 2016. - № 11. - C. 109-0.

Article original in Ukrainian (pp. 109 - 125)

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