№ 5/2020

Fìnansi Ukr. 2020 (5): 50–62https://doi.org/10.33763/finukr2020.05.050

PUBLIC FINANCE MANAGEMENT

LJUTYJ Igor ¹

¹Taras Shevchenko National University of Kyiv
OrcID ID : https://orcid.org/0000-0002-3561-2432

Financial policy: modern challenges and contradictions of implementation in Ukraine

The article examines the essence, theoretical and methodological foundations of the state financial policy, its impact on the country's macro-financial stability. The evolution of the financial policy is conditioned by the evolution of the forms of state and the democratization processes of the society, the transition from absolutism to a parliamentary republic. This process determines a new mechanism for accumulation, distribution and the use of state budget funds, the realization of economic interests of all subjects of financial system, sectors of economy, individual territories and social groups of citizens. This approach allows determining financial policy from the perspective of the system of economic relations where every citizen, having the constitutional right to property realizes their economic interests by materializing them in money income, while the existing financial system ensures their use, including capitalization. The financial system allows the state to implement its functions through the tools of the financial policy mechanism. Considering financial policy as an element of the state socio-economic policy, special attention is paid to the need to implement a single strategy of state’s socio-economic development, which implements a hierarchical structure of goals, namely strategic, interim, tactical. The contradictions of the implementation of financial policy, its efficiency and ability to defend national interests in the context of increasing globalization processes are analysed. The general modern challenges faced by each national economy are revealed: globalization and its influence on national economic systems; the “socialization” of the state budget and its socio-economic consequences; financialization of the economy. The systematic analysis of the existing problems in the functioning of the financial system of Ukraine allowed identifying the main contradictions in the implementation of financial policy and conceptualizing the recommendations on the methodology and mechanisms of their practical use by government institutions. The study of the practice of restructuring state budget of Ukraine in the context of the pandemic and economic crisis demonstrates the absence of a rational government program for financial stabilization. With the analysis of the crisis of the financial system of Ukraine, it is conceptualized that there is a need to develop and implement a single strategy of socio-economic development in which the priority is the domestic market, domestic business, when the result is the money income growth within all the social groups in Ukraine.

Keywords:financial policy, financial globalization, budgetary policy, socialization of the state budget, financialization of the economy, state debt, income

JEL: H10, H12, H30, H41, H50, H81, H82

Ljutyj I. . Financial policy: modern challenges and contradictions of implementation in Ukraine / I. . Ljutyj // Фінанси України. - 2020. - № 5. - C. 50-62.

Article original in Ukrainian (pp. 50 - 62)

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