RECOMMENDATIONS OF IMF ON QUESTIONS OF THE FISCAL POLICY AND THEIR ACCOUNT IN UKRAINE

Abstract

The analysis of risks of the implementation of Ukraine’s public budget is performed, and the tendencies in the dynamics of its indicators are determined. It is concluded that the risks of the balance of revenues and expenditures of the budget remain rather sharp. The collaboration of Ukraine and IMF on the problems of fiscal policy is directed to their restriction. It has two-sided character and is not reduced to the mechanical execution of the proposed recommendations by a state-recipient. The main attention is paid to the fiscal consolidation, rationalization of the financial operations of power bodies with state’s targeted funds and state’s corporations.
The conclusion is drawn that the aim of the reformation should be not only a reduction of budget expenditures, but the attainment of their more admissible volumes relative to the revenues. For this purpose, it is necessary to reconsider the functions of power bodies, enhancement of the efficiency of the budget resource use, orientation of the fiscal policy onto the economic growth acceleration, and ensuring the financial stability.
It is recommended to introduce some changes in the structure of public expenditures, to limit the distribution of expenditures under the pressing of a lobbying, to decrease the shadow operations, and to decrease the budget subsidies and tax preferences, which have no sufficient fiscal efficiency. It is necessary to stop the use of off-shore jurisdictions and to ensure the increase in tax revenues under conditions of elimination (and even weakening) of the tax load. It is of importance to accelerate the reformation of the control over state’s corporations in order to increase their profitability and the volume of dividends, which are paid to state’s budget. It is expedient to pass to the use of more efficient mechanisms of allotment of subsidies to needy strata of the population and to extend the transparency of fiscal operations and the access of people to their monitoring and control.