BUDGET POLICY AS AN INSTRUMENT OF STATE REGULATION OF ECONOMY
Fiscal policy is a component of economic policy and financial policy. Relevance of the topic is manifested in the fact that fiscal policy, as part of financial policy, promotes social and economic processes in society through using the centralized cash fund. The purpose of this article is to investigate the impact of various factors of budget policy to regulate the economy and analyze the urgent duties for the government directed on expansion financial base. At the national level, key aspects of fiscal policy are reflected in the main areas of fiscal policy, that are developed by the Ministry of Finance of Ukraine together with other central bodies of executive power. The document is the basis for the formation of the project. Fiscal reform should include tax, fiscal and monetary policy and structural policy in the economy, social sphere and public administration. State reforming these areas directly effects on public finances. An important objective of fiscal policy on economic development is to create conditions for enhancing the investment activity. Another problem that needs solving - implementation in Ukraine of the medium-term budget planning that will allow to make some more probable investment plans of the state. To increase the effectiveness of fiscal policy in Ukraine government enhances the use of indirect levers of fiscal adjustment, such as: providing economic restructuring compromise; creation an adequate infrastructure of a market economy; forming fair relationship between business and employees; weakening the centralization of economic development and increasing economic potential.