№ 3/2020

Fìnansi Ukr. 2020 (3): 43–64https://doi.org/10.33763/finukr2020.03.043

PUBLIC FINANCE MANAGEMENT

KUDRJASHOV Vasyl ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-4801-3620

Institutional provision for fiscal rules implementation

The analysis of the formation of a system of institutions providing for the implementation of fiscal rules in Ukraine, the division of powers among its constituents, their obligations and responsibilities for the implementation of fiscal policy is conducted. It is concluded that fiscal risks in our country remain high, and therefore it is necessary to apply fiscal rules. Тhe most important component of managing budget operations is the creation of a proper system of institutions for their implementation. Of particular importance are the issues of targeting the activities of such institutions, the division of powers and responsibilities between them. It is noted that some elements of fiscal rules have already been implemented in Ukraine, but they are not fully in line with world practices. In terms of creating an institutional system for the implementation of fiscal rules, it is necessary to clarify its goals and objectives, its main components, as well as the procedure for its activity . There are no legislative requirements for the formation of a proper structure of fiscal institutions, the division of powers among its constituents, as well as the regulatory support for budgetary procedures governing their operations. It is needed to address the issue of setting up independent fiscal institutions in Ukraine, which have proven effective in ensuring the implementation of fiscal rules in the EU. It is concluded that independent fiscal institutions should be given sufficient authority to monitor the dynamics of fiscal transactions, to publicize its results, to develop and provide recommendations and proposals to public authorities on the implementation of fiscal rules, as well as to apply mechanisms to take them into account. Such institutions should be independent of governments and politicians, indirectly impact the fiscal policy, and be able to communicate their findings and proposals to the public.

Keywords:fiscal policy, fiscal rules, fiscal institutions, fiscal risks, fiscal responsibility, budgetary operations, independent fiscal institutions

JEL: E62, H68

Kudrjashov V. . Institutional provision for fiscal rules implementation / V. . Kudrjashov // Фінанси України. - 2020. - № 3. - C. 43-64.

Article original in Ukrainian (pp. 43 - 64)

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