FISCAL POLICY IN TERMS OF INSTITUTIONAL TRANSFORMATIONS

Background.Effective fiscal policy is essential to increase the level and quality of life, economic growth, modernization of economy and social sphere. Cyclical economic processes necessitate the adaptation of financial policy to changes in macroeconomic conditions. In this regard, it is important to promptly assess the impact of exogenous and endogenous factors on the institutional components of the budget and tax system, the dynamics of their development. Review of scientific sources on selected subject allowed us to determine that at the present stage of achieving the strategic objectives of social and economic development of the country depends on the degree of incorporation in the budget and tax policy features of the institutional environment. Given the transformation process for the purpose of effective fiscal and tax reforms we need an approach that integrates trends and characteristics of social and economic development. The above forms the basis of purpose of the research. Results.The priorities and direction of improving the efficiency of fiscal policy have been revealed. The analysis of major tax revenues of the consolidated budget has been conducted. The forecast of share of the consolidated budget expenditure in GDP over the medium term has been done. It has been determined that the important tasks of fiscal policy is to improve the living standards and welfare of citizens; restructuring of the national economy towards innovation model by creating an attractive investment climate, appropriate conditions for business, improving the efficiency of fiscal instruments to achieve the defined parameters of the country, as well as timely response to changing social and economic environment. Conclusion.The study, according to the authors, will deepen the understanding of the role of fiscal policy as a tool for social and economic development of society, will enable, taking into account the abovementioned directions, to improve the basic principles of budget planning, improve quality of institutional development of budget and tax systems.