Theoretical aspects of fiscal regulation of economic development of the state

Abstract

The current socio-economic situation of Ukraine can be characterized as difficult and tense as a result of military operations on the territory of the country, numerous destruction of infrastructure facilities, energy capacities and long-term decline, lack of modernization of production, wear and tear of fixed assets almost to zero. In these conditions, the issue of finding incentives from the state to carry out modernization measures for the restoration and creation of new energy capacities, which are based on new types of generation, is acute. For example, generation from renewable energy sources. Balanced fiscal policy and regulation can act as such a unique state development tool. Therefore, the purpose of the article is to determine the peculiarities of using fiscal regulation tools in the institutional space of the economy to support the development of certain industries, and primarily energy, with special attention to the experience of EU countries that have achieved significant success in using fiscal stimulation for the development of energy, especially renewable energy. In the modern economy, the state plays a key role in the regulation and development of the institutional space. For this, various instruments of fiscal regulation are used, which allow the state to influence economic processes and create favorable conditions for business development and investment stimulation. The experience of the EU shows that the most frequently used tool of fiscal support for the development of economic sectors, and primarily energy, is the use of energy subsidies and state intervention related to specific initiatives. The use of energy subsidies and state intervention in EU countries has already brought impressive results. There are already a number of countries in which the amount of electricity produced from renewable energy sources has already exceeded the amount of energy from traditional sources. Wide use of EU experience in Ukraine regarding fiscal support for energy development can help the development of the economy and the post-war recovery of the energy sector based on the development of new energy sources. The conducted research allows us to conclude that fiscal regulation is a powerful tool that governments can use to stimulate economic growth and development. Tax policy, government spending, budget deficit and debt management - all these tools can be effectively used to achieve the country's economic goals.