The Fiscal Policy In Conditions Of Economic Crisis

In its strategy during the crisis Bulgaria opted for budgetary economies and the maintenance of a balanced budget in the name of fiscal stability and in order to keep the confidence of investors. The article discusses the justification of this line in fisc al policy against the background of the processes developing in the real economy. There are analyzed the possibilities for an alternative short - term policy pursuant to the challenges of the crisis and for supporting economic activity. There is justified th e thesis whereby a more flexible fiscal policy can provide a considerable positive stimulus to aggregate demand and economic activity without posing a threat to fiscal and macroeconomic stability. The subject of consideration and assessment is also the app ropriate structure of fiscal incentives, which could be used most effectively in order to counteract crisis - related processes.