Ensuring conditions for further socio-economic growth
Fiscal policy
The main goal in the field of public finances is to promote the creation of a socially oriented market economy, raise the living standards of the population, and lay the foundations for long-term economic growth.The city budget for 2003 was fulfilled against the adjusted annual target with revenues of UAH 129.4 million and expenditures of UAH 127 million.
The general fund of the city budget, excluding state subventions, was fulfilled at 102% for revenues and 99.3% for expenditures.
The general fund of the city budget, excluding state subventions, was fulfilled at 102% for revenues and 99.3% for expenditures.
The main problems hindering budget implementation:
- instability and imperfection of tax legislation, in particular the existence of a large number of tax exemptions, the existence of the shadow sector, narrow the tax base, make a significant reduction in tax rates impossible, and create uneven tax pressure for various sectors and enterprises;
- failure to comply with payment discipline in settlements between enterprises and the state;
- loss of tax revenues due to a significant number of loss-making enterprises;
- underdevelopment of the market for domestic state borrowings;
- inconsistency between accounting and tax accounting, and the complexity of maintaining them.
The main objectives of fiscal policy are:
- strengthening the revenue base of budgets at all levels by broadening the tax base, liberalizing and streamlining tax legislation;
- increasing the efficiency of the use of budget funds and strengthening budget execution discipline;
- defining fundamentally new approaches to the policy of state capital investments, which, together with expenditures on science and other investment expenditures, should form the basis of the development budget;
- further advancement of the reform of inter-budgetary relations in Ukraine.
Strategic tasks and measures in fiscal policy for 2004:
- reducing tax and fee arrears to 1% of GDP;
- increasing the tax culture of taxpayers and ensuring budget revenues mainly through voluntary payment of taxes and fees;
- increasing the transparency of the functioning of the budget system;
- ensuring the efficient use of budget resources.