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Forming of the Mechanism for Implementation of State Financial Policy in Ukraine

Author

Listed:
  • Nataliya Trusova

    (Taurian State Agrotechnical University, Melitopol, Ukraine)

Abstract

Financial system was considered as an integration factor of aggregated elements of state economic system that provides accumulative property of financial resources and their mobility between subjects. This is possible, when the influence of financial policy of the state is taken out. As it defines the objective tendencies of growing share of the financial sector contribution to the gross domestic product, which drives the redistribution within the financial system funds involved in the form of foreign borrowing and foreign investment. It has been proved that an alternative model of development for implementation of financial policy of the state in the context of the financial system and the economic factors functioning provides optimal cost distribution of financial resources between businesses, households, industries, regions, and financial intermediaries. Designing the integrated approach to development for implementation of financial policy of the state's distribution of budget transfers between entities of the financial system focused on corporate governing the financial resources, and is a common feature of the integrated aggregated elements of economic system. The mechanism of the financial system operation is considered as a set of tools for designing the strategic regulation, planning, financing and managing financial flows. This made ground for methodic support to the research and its meaningful component of financial support by the state and the impact of potential financial risks on the formation of alternative distribution and use of financial resources between entities on financial market. The elements of financial relations at the state level were segregated to create conditions for placing its own debt on the stock market, to attract resources to finance budget expenditures and debt management. It is suggested to consider fiscal policy as part of the implementation of financial policy of the state in the short term, aimed at the redistribution of the gross domestic product due to tax system, budget expenditure and social transfers. In the long run, fiscal policy should help boost economic development of the state through discretionary changes in economic stabilizers and regulators, thus providing a multiplier effect leveling the result of internal displacement lag and budget shortage.

Suggested Citation

  • Nataliya Trusova, 2016. "Forming of the Mechanism for Implementation of State Financial Policy in Ukraine," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 102-108, September.
    • Handle: RePEc:iaf:journl:y:2016:i:3:p:102-108
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    References listed on IDEAS

    as
    1. Feige, Edgar L., 1990. "Defining and estimating underground and informal economies: The new institutional economics approach," World Development, Elsevier, vol. 18(7), pages 989-1002, July.
    2. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross & Maksimovic, Vojislav, 2000. "Financial structure and economic development - firm, industry, and country evidence," Policy Research Working Paper Series 2423, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial system; financial system entities; financial policy of the state; fiscal policy; state debt management;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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