THEORETICAL AND APPLIED PRINCIPLES OF FISCAL POLICY FORMATION IN THE CONDITIONS OF THE DEVELOPMENT OF UKRAINIAN-CHINESE ECONOMIC ACTIVITY

Abstract

The state exists thanks to taxpayers. Therefore, the issue of organizing the functioning of the state as an integral organism inevitably comes down to fiscal policy. Different approaches to the interpretation of the economic category "fiscal policy" are motivated by differences in the organization of the socio-economic structure of countries. However, the essence of the definitions is primarily reduced to the procedure of forming the state budget and its use depending on the set goals, which are not the same in different countries. Fiscal policy is manifested through its instruments. Considering the theoretical foundations of fiscal policy formation and their applied use, the authors focused on the experience of fiscal policy formation in China and Ukraine. The experience of building and improving China's fiscal policy is relevant in terms of its effectiveness. After all, today China's economy is considered the second largest in the world after the US economy. Half a century ago, China was classified as a developing country without any hint of a lightning-fast future. However, economic reforms and reformatting of approaches to fiscal policy have created a modern economic miracle in the form of the Chinese economic system. Over the past decade, China has been the undisputed leader in bilateral Ukrainian-Chinese trade and economic relations. Both countries are interested in developing partnerships in the economic sphere, and thus there is a need for coherence of fiscal mechanisms that would be favorable for the realization of the declared intentions. It is important to note that the interpretation of the economic category "fiscal policy" by Ukrainian scholars is more theoretical, while in the works of Chinese scholars, fiscal policy is considered in terms of its practical implementation. The above statistical, analytical and calculated data indicate that China's fiscal policy responds quickly to changes in the global economic space, similarly to changes in socio-economic life and domestic market conditions. The experience of forming and improving the Chinese fiscal policy is relevant and useful for the Ukrainian state-building.