PUBLIC FINANCE MANAGEMENT

GASANOV Sergіi ¹, KUDRJASHOV Vasyl ², BALAKIN Robert ³

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-7454-0419
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-4801-3620
³SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-6431-6635

Areas of fiscal policy in terms of Ukraine-EU Association

Association Agreement between the EU and Ukraine envisages strengthening the cooperation in public financial policy conduction, coordination of fiscal rules, convergence of the regulatory environment in Ukraine and the EU. Cooperation in the field of public finance management is aimed at considering positive experience of reforming the fiscal system and limiting negative external and internal impacts. It is emphasized that in actual practice government financial policy in the EU Member States is mainly aimed at implementation of fiscal consolidation programs by implementing limiting measures on fiscal imbalances. The implementation of such transformations is achieved by making changes in key areas of fiscal policy: public expenditures policy, budget income generation and the general government sector financing. In the area of public expenditures it is approved the course to their volume optimization and structure rationalization, and improving the efficiency of budget resources allocation. In Ukraine the main direction of national government policy is to carry out fiscal consolidation aimed at limiting the public finance deficit and public debt growth rate reduction. It is suggested to complement the fiscal consolidation measures by the monetary policy instruments in support of economic growth to increase the effectiveness of fiscal policy in Ukraine. Such measures should be realized through expanding the real sector and households’ lending. Also it is proposed to implement the practice of the EU Member States concerning fiscal coordination mechanisms, modernization of institutional structures and fiscal procedures, the shadow economy limitation as well as implementing new forms of cooperation that are available within the Ukraine-EU Association.

Keywords:fiscal policy, fiscal consolidation, institutional mechanisms, monetary policy, public finance sustainability, fiscal policy coordination.

JEL: E62, F36, H30, H50, H60, H63

Gasanov S. . Areas of fiscal policy in terms of Ukraine-EU Association / S. . Gasanov, V. . Kudrjashov, R. . BALAKIN // Фінанси України. - 2014. - № 1. - C. 22-38.