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In modern conditions, one of the main tasks of the fiscal mechanism is to create favorable conditions for maintaining and activating investment processes at the micro level. Thanks to tax incentives as a leading element of the fiscal mechanism, the state influences the amount of financial resources that are at the disposal of taxpayers − legal entities and individuals - and can be used for investment. Therefore, the purpose of the study was to evaluate the use of tax incentives to ensure the investment development of enterprises and households in EU member states and in Ukraine; to conduct SWOT analysis of investment tax incentives, and to find opportunities to further improve their management. The study substantiates the content of tax incentives and the conditions of their use to activate investment processes at the micro level. The experience of EU member states in the use of different ways of tax stimulation of investments of legal entities and individuals has been generalized. The tax incentives introduced in Ukraine have been considered and the key problems of their existence have been described in the context of stimulating the investment activity of taxpayers. SWOT analysis of investment tax incentives has been carried out, which helped to identify the positive and negative impact of the external and internal environment on their implementation. The necessity and principles of management of investment preferential taxation have been established. It has been proposed to improve the management of the provision of investment tax incentives in Ukraine based on the experience of the EU member states. The authors argue that the purposeful use of tax incentives stimulates the investment activity of households and economic entities. Therefore, the use by Ukraine of the experience of the EU countries to solve the problems of providing tax incentives to individuals and legal entities will eventually lead to the intensification of investment processes at the micro level. The research was conducted as a logical process, covering two main stages - theoretical and empirical. The theoretical stage of the research consisted in the collection, systematization and generalization of facts regarding the impact of preferential taxation on the investment activities of enterprises in the EU countries and in Ukraine. The authors considered the domestic and European practice of using tax benefits to ensure the investment development of enterprises and households. The experience of EU member states regarding the use of various methods of tax incentives for investments of legal entities and individuals has been summarized. The article considers the tax benefits introduced in Ukraine and the key problems of their existence in the context of stimulating the investment activity of taxpayers. The empirical stage of the study included a SWOT analysis of investment tax incentives and the search for opportunities for further improvement of their management. According to the results of the SWOT analysis, the positive and negative influence of the external and internal environment on the implementation of tax benefits was revealed.

The fiscal mechanism, which serves as a means of implementing fiscal policy, through the organization of fiscal relations by changing the mechanisms for the formation of budget revenues and expenditures, directs established fiscal relations, manages the channels of passage and directions of fiscal flows, clarifies the proportions of the distribution of financial resources and, thus, ensures the regulation of investment development of economic entities. For Ukraine, in the context of its European integration aspirations, the study of the influence of key elements of the fiscal mechanism on the implementation of investments of enterprises in the EU countries is of particular relevance. Therefore, the article is aimed at forming a holistic view of the elements of the fiscal mechanism that lead to changes in investment processes at the micro level in the EU countries and in Ukraine, as well as conducting a correlation-regression analysis to identify the quantitative impact of the fiscal mechanism on the investment development of economic entities. In the course of the research, both the national and the European practice of taxation of enterprises was considered, the total tax burden on legal entities was calculated, the scale of capital transfers and government guarantees for enterprises in the EU countries and in Ukraine was assessed. Also, a correlation-regression analysis of the influence of elements of the fiscal mechanism on the investment development of economic entities in the EU and Ukraine was carried out, which showed that the greatest influence on the implementation of investments of enterprises was carried out by the scale of taxation of enterprises, as well as their generalized tax burden. Since capital transfers and government guarantees were provided only to individual legal entities, they did not have a significant impact on the total investments of enterprises in the EU countries and in Ukraine. As a result of the research, it is determined that in Ukraine, in order to ensure the investment development of economic entities, it is necessary to take into account the experience of the EU countries and improve those elements of the fiscal mechanism that have the greatest regulatory impact on investments. Such a component of the fiscal mechanism are taxes, especially in terms of effective provision of tax benefits.

The government, in most democratic states, has the supreme monopoly characteristic of public services, services that are realized through fiscal policy instruments, respectively through government revenues and expenditures. This research aims to provide the defining substrates of fiscal policy, so that a theoretical model of the fiscal system’s functioning to can be outlined, from the perspective of the three sectors of the state, respectively: the economic, social and political plan. In order to achieve this objective, it was used as a research method, the case study of the specialized literature, being a qualitative research, meant to bring pluses in knowledge. Establishing the fiscal strategy at the level of state's political plan has direct effects on the economic plan, and, depending on the fiscal policy at the national level, there may be influences on the social plan of the country. Thus, any political choice affects the socio-economic component of the state and vice versa. The design of the taxation system can be considered an essential ingredient in public policies, as it mainly finances government spending. Based on the study, it was concluded that the use of public revenues and expenditures in order to influence the degree of the economy’s development, makes fiscal policy to be considered the medicine or the drug of public finances, which can cure or worsen the existing situation.

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In market conditions, one of the main regulators of economic development is the financial mechanism, a key element of which is the fiscal mechanism for regulating the national economy investment development. Currently, the methods of the fiscal mechanism are not used effectively enough in Ukrainian practice, as evidenced by the low investment attractiveness of the economy and weak investment activity of economic entities. Therefore, the definition of the essence and components of methods of the fiscal mechanism is currently among the important financial and economic issues, the scientific substantiation of which largely depends on the economy investment development. The article is devoted to the study of theoretical approaches to the functioning of the methods of the financial mechanism and on this basis to determine the content and composition of the methods of the fiscal mechanism. It was determined that there are various approaches to understanding the essence of financial methods (as means, forms, methods, rules) and three conceptual approaches to the interpretation of the methods of financial mechanism: management (considers the methods of financial mechanism as processes in which implementation of financial policy); organizational (treats the methods of the financial mechanism as a means of organizing financial relations, which are formed in the process of implementing financial policy); complex (characterizes the methods of the financial mechanism as a process of organizing financial relations to achieve the objectives of financial policy). As a result of research of theoretical bases of functioning of financial methods the essence of methods of the fiscal mechanism of regulation of national economy investment development was substantiated. The main methods of the fiscal mechanism were identified, including planning, organization and control. The basic requirements to functioning of methods of the fiscal mechanism of regulation of the national economy investment development were considered.

The government, in most democratic states, has the supreme monopoly characteristic of public services, services that are realized through fiscal policy instruments, respectively through government revenues and expenditures. This research aims to provide the defining substrates of fiscal policy, so that a theoretical model of the fiscal system's functioning to can be outlined, from the perspective of the three sectors of the state, respectively: the economic, social and political plan. In order to achieve this objective, it was used as a research method, the case study of the specialized literature, being a qualitative research, meant to bring pluses in knowledge. Establishing the fiscal strategy at the level of state's political plan has direct effects on the economic plan, and, depending on the fiscal policy at the national level, there may be influences on the social plan of the country. Thus, any political choice affects the socio-economic component of the state and vice versa. The design of the taxation system can be considered an essential ingredient in public policies, as it mainly finances government spending. Based on the study, it was concluded that the use of public revenues and expenditures in order to influence the degree of the economy's development, makes fiscal policy to be considered the medicine or the drug of public finances, which can cure or worsen the existing situation. [ABSTRACT FROM AUTHOR]

Copyright of Cuestiones Políticas is the property of Revista Cuestiones Politicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In market conditions, one of the main regulators of economic development is the financial mechanism, a key element of which is the fiscal mechanism for regulating the national economy investment development. Currently, the methods of the fiscal mechanism are not used effectively enough in Ukrainian practice, as evidenced by the low investment attractiveness of the economy and weak investment activity of economic entities. Therefore, the definition of the essence and components of methods of the fiscal mechanism is currently among the important financial and economic issues, the scientific substantiation of which largely depends on the economy investment development. The article is devoted to the study of theoretical approaches to the functioning of the methods of the financial mechanism and on this basis to determine the content and composition of the methods of the fiscal mechanism. It was determined that there are various approaches to understanding the essence of financial methods (as means, forms, methods, rules) and three conceptual approaches to the interpretation of the methods of financial mechanism: management (considers the methods of financial mechanism as processes in which implementation of financial policy); organizational (treats the methods of the financial mechanism as a means of organizing financial relations, which are formed in the process of implementing financial policy); complex (characterizes the methods of the financial mechanism as a process of organizing financial relations to achieve the objectives of financial policy). As a result of research of theoretical bases of functioning of financial methods the essence of methods of the fiscal mechanism of regulation of national economy investment development was substantiated. The main methods of the fiscal mechanism were identified, including planning, organization and control. The basic requirements to functioning of methods of the fiscal mechanism of regulation of the national economy investment development were considered. [ABSTRACT FROM AUTHOR]

Increasing urbanisation require proportionate capital injections in infrastructural projects to respond to local challenges. However, local public investments, especially in low-income economies and nations, are scare due to their low budgetary capacity, resulting in a downgrade of quality in primary public infrastructure; hence, impacting on liveability levels of socio-economic dimensions of these cities. This article proposes a policy tool to address this issue by envisaging the city as a Special Economic Zone with appropriately formulated fiscal mechanisms to encourage private sector investment in the public domain in accordance with guidelines and objectives set by government or public institutions. [ABSTRACT FROM AUTHOR]

The research subject contains number of questions in the area of formation and implementation of financial regulatory mechanism of the economy. The article purpose is to disclose the essence of financial regulatory mechanism of the economy and to define directions to increase its efficiency. The research methodology. In the investigation author used the set of scientific methods, such as structural, systematic, comparable and factor analysis method. Results. The article focuses on set of questions which refer to define the essence and role of financial regulatory mechanism of the economy. Author determined instruments of financial policy which used in order to achieve sustainable economic growth. Assessment of influence of regulatory financial mechanism on economy is conducted. The main forms of state regulation of the economy in modern conditions are examined. We defined vital components of financial policy and methods of their implementation in the conditions of economic transformations. This article also evaluates statements of impact of financial policy instruments on economic growth and social development including institutional features of nation financial system. Scope of results. Financial policy and instruments of policy implementation. Conclusion. State institutions which are responsible for process of formation and implementation of financial policy should consider features and structure of domestic economy, depth of globalization transformations. Main directions of financial management on macroeconomic level conclude concentration, distribution and redistribution of economic resources, orientation economy to innovative model of development and to achieve the balance of economic growth and social assistance, to raise the level welfare. In order to enhance the financial policy government should create conditions for improvement the institutional framework of the financial mechanism of economic growth. Author defined main directions of such improvement, they are: to increase the quality of human capital, to rise the fractions of high-tech economy in its general structure, to enhance financial stability, further implementations instruments of public-private partnership.

Under current circumstances, the imperfect conditions of economic activity, which are formed in the country, have a significant influence on the macroeconomic situation. As a result, the economically unreasonable tax legislation, aimed at instantaneous replenishment of the budget, leads to an excessive tax burden on the real sector of the economy and the formation of its shadow segment. The use of shadow transactions to conceal the tax revenue is a manifestation of deeper processes of redistribution of the gross domestic product in favour of the shadow economy and requires active measures aimed at improving the tax system. The main objective of the article is to consider a way to improve the existing fiscal mechanism by identifying the main reasons for the implementation of shadow operations and the transmission features, as well as to determine the directions of increasing the influence of the fiscal mechanism on reducing the shadow sector of the economy. The article reveals the influence of the fiscal mechanism on the unshadowing of the economy through the formation of a fiscal transmission in the Ukrainian economy as a process of successive transfer of impulses of the fiscal policy of the state, reflecting the relationship between tax instruments and business activity in the real sector. The main channels of fiscal transmission are five types of taxes that are defined by the Tax Code of Ukraine: corporate profit tax, income tax, value added tax, excise tax and duty. Each tax becomes a transmission channel of the fiscal impulse in the process of determining its main components and due to their transmission; a positive effect of unshadowing in the short run is achieved. However, to do this, support for the fiscal impulse should be ensured through changes in related areas of activity and the efficient management of taxation, which includes monitoring of the indicators of the taxpayers activities, performance by the fiscal authorities explanatory work of the tax legislation and introducing an effective tax administration system. [ABSTRACT FROM AUTHOR]

The author describes the state's fulfillment of the fiscal mechanism which is capable to provide sufficient financial coverage of the state and local budgets; facilitate the achievement of strategic priorities of steady development in the state and regions through rational and substantiated usage of material, social and natural resources. The role of tax elements within the fiscal mechanism in providing the ecological, economic and social imperative of social development in Ukraine is evaluated. The structure of the fiscal mechanism is offered. The author shows that the key elements of it include the mechanism of revenue mobilization, distribution and usage of budget income, maintenance of the intergovernmental budget balance and public debt management. The author emphasizes that in the mechanism of income mobilization, besides the mechanism for mobilizing intergovernmental and official transfers and the non-tax mechanism, a dominant role plays the tax mechanism of income mobilization. The author claims that at present there are significant reserves for improving the efficiency of the tax elements in the fiscal mechanism. The author proves that it is expedient to increase the environmental role of ecological taxes because despite the significant rise of ecological tax receipts, their amount is still lower than the level of financing of capital and current expenses which are aimed to protect and restore the natural environment. The author demonstrates the need to ensure a fair redistribution of income which is based on the growth of the social role of income taxation and establishment of high social standards for the estimation of labor force cost. The author states that its level in Ukraine is rather low if to compare its average index in the countries of the European Union. The author denotes that there is an urgent need to expand the range of tax privileges and preferences for activating entrepreneurial activity in the state, with increasing of the fiscal control over the effectiveness of their use. [ABSTRACT FROM AUTHOR]

The goal of the present study is to increase the intelligibility of macroeconomic phenomena triggered by governmental intervention in economy by means of fiscal policies. During cyclical movements, fiscal policy can play an important role in order to help stabilise the economy. But discretionary policy usually implies implementation lags and is not automatically reversed when economic conditions change. In contrast, automatic fiscal stabilisers (SFA) ensure a prompter, and self-correcting fiscal response. The present study aims to tackle the topic of discretionary vs nondiscretionary characteristic of fiscal stabilisers (SF). In this context, the scope of the research undertaking is to launch a scientific debate over the definitions of the concepts of non-automatic fiscal stabilisers (SfnA) and SFAs. We describe how we can quantify the discretionary and non-discretionary character of the fiscal policy, by the analysis of the structure of the conventional budget balance (SBc), budget balance associated with the current GDP. In the final part of this article, we propose a quantitative equilibrium model for establishing the mathematical prerequisites for an SF to become automatic. Likewise, on the basis of the proposed mathematical model we have performed a qualitative analysis of the influence factors. [ABSTRACT FROM PUBLISHER]

Copyright of Scientific Journal of National University of Life & Environmental Sciences of Ukraine. Series: Economy, Agrarian Management, Business is the property of National University of Life & Environmental Sciences of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract: Payments for Environmental Services (PES) have been widely adopted worldwide as a new market-based initiative for conservation and environmental management. In Indonesia several PES initiatives exist ranging from watershed and terrestrial to marine ecosystem. Nevertheless, developing and managing PES programs in Indonesia are exacerbated by the complexity of institutional arrangements. Fiscal constraints are still the main obstacle of sustainable financing of PES mechanism. Rules and regulations with regard to PES fiscal mechanism are rather lacking, making it difficult for effective management of PES programs. As a consequence, efficient mechanism between users (firms) and environmental services is rather weak. This paper explores such a problem based on case studies of two existing PES programs in Indonesia. The paper analyzes the complexity of fiscal mechanism as a derivative of regulations and discusses challenges to overcome the constraints. [Copyright &y& Elsevier]