STATE FINANCIAL POLICY AS AN INSTRUMENT OF ECONOMIC DEVELOPMENT

Abstract

The subject of the financial policy of the state as a tool of economic development is determined by the need to adapt the economic system to modern challenges. Financial policy, which includes fiscal and monetary measures, is a key mechanism for regulating economic processes. In the conditions of globalization, economic crises and instability of financial markets, an effective financial policy contributes to economic stabilization, GDP growth, inflation control and investment attraction. For Ukraine, which is on the path of reforms and integration into the world economy, the issue of financial policy optimization is of particular importance. The study and implementation of the best global practices in the field of financial regulation will contribute to increasing the competitiveness of the national economy and improving the welfare of citizens.

The article examines the role of the state financial policy in ensuring sustainable economic development. The author analyses the main aspects of financial policy, such as budget management, taxation, public debt and investment, identifying their impact on economic processes. Special attention is paid to strategies aimed at stimulating production, providing social support and strengthening financial stability. Examples of successful implementation of financial instruments in different countries and recommendations for optimising financial policy to achieve effective economic growth are highlighted.

The study of financial policy as a tool of economic development made it possible to determine the key aspects and mechanisms affecting the economic growth of the state. Effective fiscal policy has been found to contribute to sustainable economic development by ensuring a balanced budget, controlling inflation, increasing employment and reducing social inequality.

Analysis of international experience has shown that countries that have successfully implemented comprehensive financial reforms have achieved significant results in increasing investment attractiveness and stimulating innovation. Such examples as New Zealand, Sweden and Canada demonstrate that the rational use of budget resources, support of small and medium-sized businesses, as well as the introduction of the latest technologies can significantly improve economic indicators.