NECESSITY TO OPTIMIZE THE FISCAL POLICY OF UKRAINE

The article describes the features of fiscal policy in Ukraine. The imperfection of fiscal policy and budgetary problems of Ukraine are identified, in particular, a significant degree of fiscal centralization, instability, frequent changes and additions to the tax legislation. The features of fiscal policy in Ukraine influence not only the process of reforming the tax system, but also the entire system of public finance. The major changes in fiscal policy with the adoption of the Tax Code are described. The basis of the tax system of Ukraine consists of the following taxes: personal income, corporate income tax, value added tax, excise tax and duty. In Ukraine, the tax system for the years 1998-2003 was dominated by direct taxes. Some recommendations for further improvement of the fiscal policy and modernization of tax system of Ukraine are proposed.