FISCAL POLICY: THEORY AND PRACTICE IN UKRAINE

The article is devoted to defining theoretical principles, tools, and mechanisms of fiscal policy; compliance of Ukrainian fiscal policy with existing theoretical principles and practice in this area of government regulation in developed countries. The main stages in the evolution of Keynesian strategies of macro regulation are highlighted. We analyzed current phase, which is defined as a phase of fiscal consolidation that started at the theoretical level with discussions on what is more effective: a policy based on stringent rules and laws or policy based on circumstances. It is emphasized that practical importance of theoretical discussions was increased with side effects, that have arisen during the economic policies to overcome the global financial crisis of 2008-2009. Overview of the basic measures stimulating fiscal policy pursued by developed countries to overcome the financial crisis of 2008-2009 is provided. It is determined that the leading countries adhere to common tactic of stimulating fiscal policy and concluded that despite some modifications, fiscal policy is based on the basic postulates of Keynesian theory of macroeconomic regulation and experience of anti-crisis policy of recent years proves its efficiency in modern conditions of information and network economy. The content of Ukrainian fiscal policy in modern terms is revealed. Factors that are crucial for fiscal policy are systematized. It was found that in recent years a contractionary policy was implemented, due to the need for fiscal consolidation, and despite the economic downturn, rising unemployment, reduced total expenditures. The following features of fiscal policy are determined: reaction is not systematic, but rather pointed; discretionary fiscal policy mechanism prevails; there is a discrepancy between the versions of the fiscal policy and the phases of the economic cycle, due to both objective factors such as the existence of military conflict and the lack of necessary funds and government implementation of quasi-fiscal operations, and focus on the action of purely economic factors to improve economic situation in the country.