Financial policy of economic growth

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Financial policy of economic growth

Journal Title: Економічний вісник університету - Year 2016, Vol 1, Issue 31

Abstract

The subject of research is theoretical and practical issues of the financial policy formation of economic growth. The research goal is disclosure for financial policy of economic growth. Research methods. In this paper, a set of scientific methods and approaches used, including systemic, structural, comparative, factorial methods that allowed to realize conceptual integrity of the research. The results of the research. The economic essence of the financial policy of economic growth disclosed. Its essence is to use a set of economic relations in the formation of an effective distribution and redistribution of the gross domestic product and national income between its individual links, which are defined properly structured system of financial institutions and their relationships to create the appropriate conditions for sustainable economic growth. Fiscal policy is an important tool for economic development. Identifying priority areas of financial policy in the medium and long term will increase the impact of structural changes in the economy and the social sphere, development of human capital. A balanced approach to the development and implementation of financial policies require consideration the impact of exogenous and endogenous factors on the economic system. In addition, the state should proceed from the need to ensure financial stability in the development of the main directions of economic policy. It is reasonable to realization prudent financial regulation taking into consideration trends in economic growth, the reduction of the public debt weight to gross domestic product and debt burden on the budget. An important task of the financial system is to ensure optimal redistribution of the gross domestic product, financial and economic resources to stimulate the domestic economy. Dynamic economic system development of the country depends on the quality of the financial policy institutional mechanisms. It is important to improve the efficiency of financial and economic policy, taking into account the cyclical economy at the present stage transformations. Development and implementation of financial policies should be based on evidence-based provisions that will strengthen the financial system balance and effectiveness of the financial regulation of society. Area of the research application. Formation of financial policy. Financial support for economic growth. Conclusions. Fiscal policy is an important tool for regulating economic development. The priority areas of financial policy in the medium term should be the improvement of the institutional framework of financial regulation, improving the effectiveness of fiscal planning and forecasting gradual reasonable growth rate of monetization, development of financial intermediary institutions, improving the effectiveness of currency regulation, strengthening the relationship with financial regulation cyclical economic development , macroeconomic balance. The financial mechanism is an important part of the economy state regulation, which is aimed to ensuring balanced development of economy and social sphere. In the conditions of economic recovery there is strengthening and promoting the role of the state in regulating the production and financial sector, as defined in the support of economic entities, a significant share of the financing of research from the budget, increasing the state's share in the total gross investment , the volume of government contracts. At the current stage of economic development it is important to realize financial incentive policies to restore the positive dynamics of economic growth and welfare. Further research is expedient to direct to deepen the nature and role of the financial component of social development to ensure sustainable economic growth.

Authors and Affiliations

Volodymyr Pasichnyk

Keywords

finance; fiscal policy; public financial regulation; budget system; taxation; financial institutions; economic growth

EP ID EP176477
DOI -
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