Regional State Fiscal Policy: Russian and Foreign Experience

Abstract

Fiscal policy is said to be the most important instrument to regulate social and economic development in regions in most developed countries. Judging by the experience of other countries fiscal policy is very dynamic and should be changeable to function effectively. When regulating regional development it can play a role of a stimulator or limiter of social and ineffective decisions. Fiscal policy is closely connected with macroeconomic processes so that it is one of the elements of macroeconomics. A regional fiscal policy is considered an instrument of economic regulation, which stimulates the economy in a given direction. The article describes the territorial peculiarities of state fiscal policy; the features of the state policy for the economies of different types are defined; the role of state fiscal policy in the country and the regions is validated; the stabilization and structural stances of regional fiscal policy are set; the peculiarities, objectives, and prospects of fiscal policy in the country and in the regions are formulated; the directions in terms of increasing the economic potential of the regions are proposed.

DOI: 10.5901/mjss.2015.v6n6p436