FEATURES OF THE FISCAL POLICIES OF UKRAINE AND CHINA: CURRENT PROBLEMS IN ENSURING ECONOMIC RECOVERY

Abstract

The article analyzes the fiscal policies of Ukraine and China, in particular the problems of economic recovery. The authors emphasize that Russian aggression has caused significant economic and financial losses to Ukraine, which are felt not only in Ukraine but also abroad. It is shown that fiscal policy affects economic security through changes in taxation, public spending and their redistribution to strengthen economic stability. China's successful experience in overcoming the economic crisis arouses interest in analyzing the effectiveness of reforms and their development in the transition period. The authors note that macroeconomic stability before the war, fiscal measures, and financial support from partners helped Ukraine maintain its budget deficit. For further recovery and growth, Ukraine needs to return to a balanced fiscal policy, improve spending, tax administration, reduce the state role in the economy, and improve the investment climate. To ensure sustainable economic development, Ukraine needs not only to implement prudent fiscal measures, but also to actively support innovation and economic modernization. It is also important to focus on creating a favorable business environment that will encourage investment and increase the competitiveness of Ukrainian enterprises. One of the key aspects is the development of infrastructure and modernization of public services, which will help reduce administrative barriers and increase the efficiency of governance. Overall, only a comprehensive approach to economic policy, including fiscal reforms, infrastructure modernization, fighting corruption, and integration into international economic systems, will allow Ukraine to overcome the effects of the crisis and ensure stable and sustainable economic growth in the future. The study showed that under martial law, the main priorities of Ukraine's fiscal policy were to ensure the country's defense and security, as well as to adjust social spending through new initiatives and funding of existing programs. The proposed public finance reforms support the overall goals of the Ukraine Facility, including overcoming the social, economic and environmental consequences of the war, increasing resilience and integration into global markets, alignment with EU standards, and ensuring Ukraine's stability and sustainable development. China, on the other hand, has low personal income tax revenue, which is due to a number of tax policy measures aimed at reducing consumption taxation. Drawing on international experience and IMF reports on technical assistance to China, the authors propose a strategy for mobilizing revenues through tax policy reforms, assessing their potential revenue and benefits. The authors argue that targeted fiscal measures will be more effective if they are accompanied by cash transfers and financial guarantees, including support for households to maintain their livelihoods and help firms prevent losses in supply chains.