| Abstract [eng] |
Many economic states are faced with the problem of balancing the budget and its impact on inflation, governments believe that proper application of fiscal policy measures will help reduce the deviations of these problems and remain competitive in the global economy market. For this purpose, states formulate fiscal policy, analyze its prospects, consequences, taking into account what impact the measures or programs applied will have on the level of inflation. Properly selected fiscal measures make it possible to avoid interest rate hikes, reduce the risk of recession and high inflation. This is carried out through the reduction of the budget deficit, government debt, tax policy. To combat high inflation, monetary policy is a more efficient and faster way. However, fiscal policy contributes to monetary policy by reducing budgetary expenditure, recession losses and accelerating economic growth. Perhaps the most important essence of fiscal policy is a stable and consistent tax system, which contributes to economic growth, financial stability, reduces the risk of economic instability. In both developed and developing countries, fiscal policy is considered less effective than monetary policy in order to stabilize the political system. Monetary policy is often insufficient to maintain economic deveopment and stability. In order to ensure price stability and sutainabilty of public finance, fical policy must ensure a balanced state budget. The developing countries of the world are characterized by high inflation, increasing amount of money, fiscal deficit. These countries typically have a large publ;ic sector, less developed financial markets, a complex tax system and limited borowing opportunities from foreign markets. |
