The Improvement of Fiscal Policy for the Purpose of Ensuring Sustainable Economic Growth in the Country

Abstract

Current government policy in the field of taxation and the generation and use of budgetary funds occupies the minds of economic researchers. The entire range of corresponding decisions and measures is called fiscal policy. Depending on the current macroeconomic situation, it may be aimed at encouraging or restraining economic activity, ensuring full employment, or combating inflation. Aim. Fiscal policy ultimately serves to reduce fluctuations of the economic cycle and ensure sustainable economic growth with high employment and a moderate inflation rate. Methods. This study uses general methods of scientific cognition. The works of Russian and foreign scientists and legislative documents in the field of tax policy improvement serve as the theoretical basis of this study. Results. A comparative analysis of the Russian and foreign fiscal policy formation is performed. The extent of the fiscal policy’s impact in ensuring sustainable economic growth is determined in the context of the macroeconomic equilibrium between government expenditures and net taxes from corporations and households. The study concludes that the role of the fiscal system in economic theory and practice is underappreciated. The same applies to the Russian fiscal system, which is in many ways measured by the indicators of Western fiscal systems that became standard in Russia over the last 25 years. It is established that the fiscal system plays a key role in the harmonization of national, sectional, and personal material interests as well as in rectifying the deficiencies of market coordination.