The set of fiscal policy tools includes government subsidies, manipulation various types taxes (personal income tax, corporation tax, excises) by changing tax rates or piece taxes. In addition, fiscal policy instruments include transfer payments and other types of government spending. Different tools affect the economy in different ways. For example, an increase lump-sum tax leads to a decrease in total costs, but does not lead to a change in the multiplier, while an increase in personal income tax will cause a decrease in both total costs and the multiplier. The choice of different types of taxes - personal income tax, corporation tax or excise tax - as an instrument of influence has a different impact on the economy, including incentives that affect economic growth and economic efficiency. The choice is also important separate species government spending, since the multiplier effect may be different in each case. For example, among experts in the field economic policy there is an opinion that defense spending provides a smaller multiplier compared to other types of government spending.

Depending on the phase of the cycle in which the economy is located, and the type of fiscal policy corresponding to it, the instruments of the state's fiscal policy are used in different ways. Thus, the instruments of stimulating fiscal policy are:

increase public procurement;

tax cuts;

increase in transfers.

The instruments of contractionary fiscal policy are:

reduction in public procurement;

increase in taxes;

reduction in transfers.

A slightly different list of fiscal policy instruments is presented in the textbook "Economics" by Academician G.P. Zhuravleva. According to this source of literature, the tools of discretionary fiscal policy are public works, changing transfer payments, and manipulating tax rates.

The author of this textbook considers changes in tax revenues, unemployment benefits, and others as instruments of automatic fiscal policy. social payments subsidies to farmers.

Analyzing the sources of literature, one can come to the conclusion that the main instruments of fiscal policy are changes in taxes and transfer payments.

One of the main instruments of fiscal policy are taxes, which are funds forcibly withdrawn by the state or local authorities from individuals and legal entities required for the performance of the State's functions.

Taxes perform three main functions:

fiscal, consisting in the collection Money to create state monetary funds and material conditions for the functioning of the state;

economic, involving the use of taxes as an instrument of redistribution national income, the impact on the expansion or containment of production, stimulating producers in the development of a variety of different types economic activity;

social, aimed at maintaining social balance by changing the ratio between the incomes of individual social groups in order to smooth out the inequality between them.

AT modern economy There are different types of taxes.

Direct taxes are taxes on the income or property of taxpayers. In turn, direct taxes are subdivided into real ones, which became most widespread in the first half of the 19th century, and which include land, house, trade, tax on securities;

personal, including income, taxes on corporate profits, on capital gains, on excess profits.

Indirect taxes consist of excises, value added taxes, sales taxes, turnover, customs duties.

Depending on the authority at the disposal of which certain taxes are received, there are state and local taxes. AT Russian conditions these are federal, taxes of subjects of the federation, local.

Depending on the use, taxes are divided into:

general, intended to finance the current and capital expenditures of the budget, without being assigned to any particular type of expenditure;

special taxes with special purpose.

Depending on the nature of the rates, taxes are distinguished:

fixed (fixed), established in absolute amount per unit of taxation, regardless of the various economic indicators associated with business activity;

regressive, in which the percentage of income withdrawal decreases with increasing income;

proportional, manifested in the fact that regardless of the amount of income, the same rates apply;

progressive, in which the percentage of withdrawal increases as income increases.

A group of American specialists led by A. Laffer studied the dependence of the amount of tax revenues to the budget on income tax rates. This dependence is reflected by the Laffer curve.

Tax rates are set as a percentage that determines the proportion of income withdrawn. Up to a certain increase in the tax rate, incomes grow, but then they begin to decline. As the tax rate rises, the desire of enterprises to maintain high production volumes will begin to decrease, enterprises' incomes will decrease, and with them tax income enterprises. Therefore, there is such a value of the tax rate at which tax revenues in the state budget reached maximum value. It is advisable for the state to set the tax rate at this value. Laffer's group has theoretically proven that a tax rate of 50% is optimal. At this rate, maximum amount taxes. At a higher tax rate, it drops sharply business activity firms and workers, and then income flows into the shadow economy.

However, in many states tax rates are much higher than the optimal level, and this is due to other factors that are not taken into account in the theoretical model. For example, in countries gravitating toward strong state regulation, the desire to increase the budget through revenue side. Tax rates in such countries are high. And vice versa, if a country tends to a liberal market system, to a minimum government intervention into the economy, tax rates will be lower. In addition, the desire to have a socially oriented economy and direct a significant part of budget allocations to social assistance does not allow for a significant reduction in tax rates - in order to avoid a shortage budget funds for social needs. High tax rates in Russian economy primarily due to the budget deficit, lack of public funds for the implementation of socio-economic programs and a weak hope that the reduction in tax rates will lead to increased production and economic recovery. In order to somehow alleviate the tax burden for individual taxpayers, tax incentives are applied - a form of lowering tax rates or, in the extreme case, tax exemption. Sometimes tax incentives are used as an incentive based on the fact that a tax reduction is adequate to provide the taxpayer with additional funds equal to the amount of the reduction. The problem of choosing and assigning rational tax rates is faced by any state.

Obviously, the higher the taxes, the less income the subject will have, which means less buying and saving. Therefore reasonable tax policy involves a comprehensive consideration of those factors that can stimulate or inhibit economic development and welfare of society.

Such an instrument of the state's fiscal policy as taxes is closely related to another instrument fiscal policy- government spending. Funds withdrawn in the form of taxes go to the state budget, subsequently spent on various purposes of the state. In the conditions of the current legislation of the Russian Federation, the main part of the budget is filled at the expense of payments from taxpayers - legal entities.

At present, the point of view about the need for an additional significant reduction in tax rates for basic taxes has become widespread. In support of this, the authors point out that despite a temporary drop in tax revenues, in the long term, investment conditions improve, the production of goods and services will increase, employment will increase, and, as a result of growth tax base government revenue will rise.

State or government spending refers to the cost of maintaining the institution of the state, as well as government purchases of goods and services.

Public procurement of goods and services can be of various types: from the construction of schools, medical institutions, roads, cultural facilities at the expense of the budget to the purchase of agricultural products, military equipment, samples of unique products. This also includes foreign trade purchases. Main hallmark of all these purchases lies in the fact that the consumer is the state itself. Usually speaking about government purchases, they are divided into two types: purchases for the state's own consumption, which are more or less stable, and purchases for market regulation.

The state increases its purchases during periods of recession and crisis and reduces during periods of recovery and inflation in order to maintain the stability of production. At the same time, these actions are aimed at regulating the market, maintaining a balance between supply and demand. This goal is one of the most important macroeconomic functions of the state.

Government spending plays a significant role in the socio-economic development of society. Hence, they are objectively necessary, and at the same time, exceeding reasonable limits by them can lead to financial instability in the national economy, an excessive deficit of the state budget.

Government spending takes the form of:

state order, which is distributed on a competitive basis;

construction at the expense of capital investments;

defense spending, management, etc.

The bulk of government spending goes through the state budget, which includes the budgets of the federal government and local authorities.

The state budget is an annual plan of public expenditures and sources of their financial coverage (revenues). AT modern conditions the budget is also a powerful lever state regulation economy, the impact on the economic situation, as well as the implementation of anti-crisis measures.

The state budget is a centralized fund monetary resources, which the government of the country has to maintain the state apparatus, the armed forces, as well as perform the necessary socio-economic functions.

Expenditures show the direction and purpose of budgetary appropriations and perform the functions of political, social and economic regulation. They are always targeted and, as a rule, irrevocable. The irrevocable provision of public funds from the budget for targeted development is called budget financing. This mode of spending financial resources differs from bank lending, which assumes the repayment nature of the loan. It should be noted that the irrevocable provision of financial resources does not mean arbitrariness in their use. Every time when financing is used, the state develops the procedure and conditions for the use of money for the targeted direction and ensuring the general economic growth and improve the lives of the people.

The structure of public spending in each country has its own characteristics. They are determined not only by national traditions, the organization of education and healthcare, but mainly by the nature of administrative system, structural features of the economy, the development of defense industries, the size of the army, etc.

Government transfers, being one of the instruments of fiscal policy, are payments government agencies not related to the movement of goods and services. They redistribute state revenues received from taxpayers through benefits, pensions, social insurance payments, etc. Transfer payments have a lower multiplier than other government spending because some of these amounts are saved. The transfer payment multiplier is equal to the government spending multiplier times the marginal capacity to consume. The advantage of transfer payments is that they can be directed to certain groups of the population. Social transfers (pensions, scholarships, various allowances) are included in average income, and these payments allow you to increase the family budget by 10-12%.

Fiscal policy instruments influence the economic situation in their own way, helping to achieve the goals set for fiscal policy. The main instruments of the state's fiscal policy are changes in taxes and transfer payments. Fiscal policy instruments are interrelated and their role in the implementation of a particular government policy is great.

Fiscal policy: goals, types, tools. Discretionary Policy and Built-in Stabilizers

fiscal policy represents government measures to stabilize the economy by changing the amount of income and (or) expenses state budget . Therefore, fiscal policy is also called fiscal policy.

Fiscal Policy Goals like any stabilization policy aimed at smoothing out cyclical fluctuations in the economy, are:

• ensuring stable economic growth;
• security full time labor resources- Solving the problem of unemployment;
• ensuring a stable price level is a solution to the problem of inflation.

Fiscal policy instruments are the costs and revenues of the state budget, namely: public procurement; taxes; transfers.

Depending on the mode of functioning of fiscal policy instruments, it is divided into non-discretionary and discretionary policy. non-discretionary policy called the policy of "built-in stabilizers". These stabilizers are: a progressive system of taxation, indirect taxes, various transfer allowances. At the same time, the amounts of receipts and payments are automatically changed in case of a change in the situation in the economy.

Discretionary Policy - this is a conscious change in taxes and government spending by the legislature to ensure macroeconomic stability, achieve macroeconomic goals. The main instruments of discretionary fiscal policy are:

• changing the volume of tax exemptions by introducing or abolishing taxes or changing the tax rate;
• implementation of employment programs at the expense of the state budget, which aim to provide employment to the unemployed;
• implementation social programs which include the payment of old age benefits, disability benefits, poor families, education costs, etc. These programs help maintain aggregate demand and stabilize economic development when incomes shrink and need escalates.

Depending on the state of the economy and the goals facing the government, fiscal policy is divided into :

• stimulating, carried out to overcome the recession and involving an increase in government spending and tax cuts;
• containment, designed to limit the cyclical upturn and involving cuts in government spending and tax increases.

Like private investment, government spending and taxes have a multiplier cartoon effect .

When government spending changes, a chain of secondary, tertiary, etc. is obtained. consumer spending (an unemployed person, having received an allowance from the state, bought bread from a farmer, a farmer bought boots, etc.), which entail an increase national product. Government Spending Multiplier shows the increase in gross national product (GNP) as a result of an increase in government spending per unit. The higher the value of the public spending multiplier, the more powerful means of regulation national economy is a discretionary fiscal policy.

Like government spending, taxes also have a multiplier effect. Thus, when a policy of containment is pursued, an increase in taxes makes a decrease in the national product inevitable. But the decrease in consumption aggregate demand and GNP will occur by an amount less than the increase in taxes, since tax multiplier equals the ratio of the marginal propensity to consume to the marginal propensity to save. And in accordance with Keynes' basic psychological law , if taxes increase, then it is not so much consumption that decreases, but savings (refusal of savings).

Thus, taxes have a smaller effect on aggregate demand than government spending .

fiscal policy represents measures taken by the government to stabilize the economy by changing the amount of revenues and / or expenditures of the state budget. Therefore, fiscal policy is also called fiscal policy. Fiscal policy is part financial policy state, carried out by its government.

fiscal policy- the policy of manipulating the budget, spending and taxes in order to change the real volume of production and employment, control inflation and accelerate economic growth.

Goals Fiscal policy, like any stabilization (counter-cyclical) policy aimed at smoothing out cyclical fluctuations in the economy, is to ensure:

1) stable economic growth;

2) full employment of resources (primarily solving the problem of cyclical unemployment);

3) a stable price level (solution to the problem of inflation).

Fiscal policy is the government's policy of regulating, first of all, aggregate demand. The regulation of the economy in this case occurs through the impact on the amount of total costs. However, some fiscal policy instruments can also be used to influence the aggregate supply through the impact on the level of business activity.

Tools fiscal policy are the costs and revenues of the state budget, namely:

1) public procurement;

2) taxes;

3) transfers.

The impact of fiscal policy instruments on aggregate demand is different. From the aggregate demand formula (AD = C + I + G + Xn) it follows that state procurements are a component of aggregate demand, so their change has direct impact to aggregate demand, and taxes and transfers render indirect impact on aggregate demand, changing the value of consumer spending (C) and investment spending (I).

At the same time, the growth of government purchases increases aggregate demand, and their reduction leads to a decrease in aggregate demand.

The increase in transfers also increases aggregate demand. On the one hand, since with an increase in social transfer payments, the personal income of households increases, and, consequently, ceteris paribus, disposable income increases, which increases consumer spending. On the other hand, an increase in transfer payments to firms (subsidies) increases the opportunities domestic financing firms, the possibility of expanding production, which leads to an increase in investment costs. Reducing transfers reduces aggregate demand.

Increasing taxes works in the opposite direction. An increase in taxes leads to a decrease in both consumer spending (because disposable income is reduced) and investment spending (because retained earnings, which are the source of income, are reduced). net investment) and, consequently, to a reduction in aggregate demand. Accordingly, tax cuts increase aggregate demand. Tax cuts shift the AD curve to the right, causing real GNP to rise.

Therefore, fiscal policy instruments can be used to stabilize the economy at different phases of the economic cycle.

Moreover, from a simple Keynesian model (the “Keynesian Cross” model) it follows that all fiscal policy instruments (public procurement, taxes and transfers) have a multiplicative effect on the economy, therefore, according to Keynes and his followers, economic regulation should be carried out by the government with using fiscal policy instruments, and above all, by changing the amount of public purchases, since they have the greatest multiplier effect.

According to classical concept, fiscal policy instruments only lead to a redistribution of funds from the private sector to the public sector and do not affect the values ​​of NI and employment in the economy. The increase in aggregate demand caused by the increase in autonomous demand in the goods market is largely offset by the interaction with money market. This mechanism is called the displacement effect. The growth of government purchases will lead to an increase in the interest rate, which will cause a decrease in the investments planned by entrepreneurs in an amount equal to the initial increase in government purchases. There will be a price increase.

Fiscal policy is called fiscal policy. This is one of the tools for macroeconomic regulation of the economy through government spending and taxes.

Fiscal Policy: Goals and Instruments

The objectives of fiscal policy, like any stabilization policy aimed at smoothing out cyclical fluctuations in the economy, that is, stabilizing the economy in the short term, are to maintain:

– stable economic growth;

- full employment of resources;

- a stable price level.

Discretionary fiscal policyis the deliberate manipulation of government spending and taxes in order to achieve macroeconomic stability.

Government spending is a component of AD, so when it increases, spending increases, and a new, higher level of equilibrium production is established.

Stimulating fiscal policy(fiscal expansion) is aimed at stimulating production, combating unemployment and recession. At the same time, taxes are reduced, government spending is increased, or both are applied. Because government spending is a component of aggregate demand, an expansionary fiscal policy will increase aggregate demand AD (tax cuts will also increase investment and consumption). The result of such a policy may be an increase in production and employment. The problem is rising prices.

Example: Roosevelt's New Deal during the Great Depression. The widespread implementation of public works funded by the state (construction of dams, roads, etc.) in those years is a vivid illustration of the stimulating function of public spending to maintain high level national income, or rather, the desire to bring the economy out of a state of stagnation and depression with high unemployment.

At the same time, the state organized public Works rather than building new plants and factories. In the conditions of overproduction of goods that accompanied the Great Depression, it was important to create additional effective demand and reduce unemployment, and not throw new batches of goods on the market.

Example: Joint Action Plan of the Government, National Bank and the Agency for Regulation and Supervision financial market and financial institutions Republic of Kazakhstan to stabilize the economy and financial system for 2009-2010 4 billion US dollars were sent to the economy of Kazakhstan under the first stabilization plan and 14.7 billion dollars. - according to the second plan. So, according to the second plan, the funds were distributed in the following areas: stabilization financial sector- 4 billion dollars. USA (480 billion tenge); development of the housing sector - 3 billion dollars. USA (360 billion tenge); support for small and medium-sized businesses - 1 billion dollars. USA (120 billion tenge); development of the agro-industrial complex - 1 billion dollars. USA (120 billion tenge); implementation of innovative, industrial and infrastructure projects - 1 billion dollars. USA (120 billion tenge).

As part of the program " Road map» was sent 600 billion tenge in order to provide employment for 350 thousand people. The main directions of the program:

- reconstruction and modernization of utility networks, such as objects and networks of water supply, heat supply, energy and sewerage;

Construction, reconstruction and repair highways local importance, as well as update social infrastructure, especially schools and hospitals;

- landscaping and gardening objects of local importance, such as repair of roads, clubs at the discretion of local authorities;

R expansion of social jobs and organization of youth practice.

Contractionary fiscal policy(fiscal restriction) is used in the fight against inflation. At the same time, income taxes are increased (indirect taxes are reduced, because they directly affect the price level), government spending is reduced, or both are applied. With a reduction in government spending and an increase in taxes (investment and consumption are reduced), the AD curve shifts to the left, real equilibrium output in this case is reduced. The problem can be a reduction in occupancy, so it is effective to use on the vertical segment of the AS curve.

Example: restrictive fiscal policy (together with monetary policy) of Kazakhstan in 1993-1995. within the framework of macroeconomic stabilization policy. Implemented: abolition tax breaks stimulating production activities, reducing the state apparatus and spending on education, medical service etc. At the same time, the number of cooperatives, limited liability partnerships and small enterprises working in the manufacturing sector has sharply decreased. As a result, inflation rates have declined (see table).

Non-discretionary fiscal policyis the automatic achievement of macroeconomic stability without government intervention due to built-in stabilizers. Automatic (built-in) stabilizers are rules and norms adopted in the economy that allow automatically, without government intervention, to respond to deviations from a stable position and bring the economy to a stable state. These include: progressive taxation, social unemployment benefits, etc. For example, progressive taxation means that when income decreases, the amount of tax levied on income is automatically reduced. If people lose their jobs, the government pays unemployment benefits. Upon reaching a certain age, the right to receive a pension automatically arises, etc.

The fact that during a recession tax revenues decrease and increase during an upturn causes a state budget deficit during a downturn, a surplus during an upsurge, because. usually government spending is stable and independent of GDP. During a recession, an excess of government spending (taking into account the multiplier M) will contribute to an increase in GNP, and during an increase (when inflation increases nominal GNP) - the excess of taxes affects the reduction of GNP.

See the figure below: the economy "by itself" reaches the equilibrium level Y1. With a downturn in the economy (Y2), production expands; with an upturn (Y3), production decreases.

Let's look at an example based on the graph data. Let government spending be constant at any level of production and equal to $100. At the level of production Y2, the economy experiences a decline in the level of production and GDP. Automatically, tax revenues fall to 80 USD.

1. Given that government spending is part of total spending in the economy, it stimulates production by +∆Y =∆G*М=+100 c.u.*М.

2. Taxes help reduce total costs, these are “leaks”, they reduce production by -∆Y=∆Т* M=-80 c.u.*M g ,

3. Grand total: ∆ Y=(+100 c.u.*M) - (80 c.u.*M) = +20c.u.*M

Output Y will rise to the equilibrium level Y1.

And vice versa when lifting. At the level of production Y3, the economy experiences an increase in the level of production and GDP (most likely accompanied by inflation). Automatically, tax revenues grow to 120 USD.

1. Government spending stimulates production by +∆Y =∆G*М=+100 c.u.*М.

2. Taxes help reduce total costs by -∆Y=∆T* M=-120 c.u.*M.

3. Grand total: ∆ Y=(+100 c.u.*M) - (120 c.u.*M) = -20c.u.*M

Output Y falls to the equilibrium level Y1.

The impact of the overall tax rate on production in the country and tax revenues to the budget shows Laffer curve discussed in the previous lecture. Supporters supply-side economics theory believe that a high tax rate does not stimulate production, which "goes into the shadows", as well as too low rate inefficient, because in both situations, tax revenues to the budget are reduced. Under the AD-AS model, the aggregate supply of AS due to high stakes taxes are reduced (shifted to the left), which leads to a reduction in the level of production and employment and an increase in the price level. Therefore, it is necessary to establish the optimal total rate taxes (30-50%), then there will be an increase in the level of production and employment and a decrease in the level of prices.

However, the problem is that such changes occur in long term, and in the short term, tax revenues to the budget are reduced due to lower tax rates.

Fiscal policy is the policy of the state in the field of taxation and public spending, designed to maintain a high level of employment, a stable economy, and growth in GDP.

Fiscal policy as a way financial regulation economy is carried out with the help of powerful levers - taxation and government spending. In this regard, two types of fiscal policy are being pursued: discretionary and non-discretionary.

The fiscal function of the budget - involves, on the one hand, ensuring financial resources fulfillment by the state of its direct administrative, defense, foreign policy and social tasks, i.e. those public services assigned to him by society. On the other hand, the fiscal function of the budget is not limited to the provision of public services.

It is directly related to its distribution function, but does not have its own specific forms of implementation, because the fiscal policy of the state is the policy of maintaining the budget deficit at a level corresponding to such macroeconomic goals as controlling inflation, increasing investment activity of all financial resources, the growth of the general economic potential of society, which in turn ensures an increase in the revenue base of the budget and, accordingly, an increase in the volume of public services provided.

The effectiveness of fiscal policy increases significantly if it is combined with the implementation of an appropriate monetary policy.

Fundamental Purpose fiscal policy is to eliminate unemployment or inflation. During the recession, the question of the elimination of unemployment, therefore, of stimulating fiscal policy, is on the agenda.

The stimulus fiscal policy includes:

1) an increase in government spending, or

2) tax cuts, or

If there is balanced budget, fiscal policy should move in the direction of the government budget deficit during a recession or depression. Conversely, if the economy is experiencing inflation caused by excess demand, this case is consistent with contractionary fiscal policy.

The contractionary fiscal policy includes:

1) reducing government spending, or

2) an increase in taxes, or

3) a combination of the first and second.

Fiscal policy should be guided by a government budget surplus if the economy is faced with the problem of controlling inflation.

The fiscal function is manifested in providing the state with the financial resources necessary to meet public needs. With its help, a centralized fund of the state is formed, at the expense of which a significant part of budget revenues is created.

Through the fiscal function, the state provides:

Achieving a balance between budget revenues and expenditures;

Uniform distribution of tax revenues by links budget system;

Raising the level of social infrastructure in the country and in each individual region;

Fulfillment of the functions and tasks of the state;

Preservation of social stability.

Fiscal policy tools include: the manipulation of various types of taxes and tax rates, in addition, transfer payments and other types of government spending. The most important comprehensive tool and indicator of the effectiveness of fiscal policy is the state budget, which combines taxes and expenditures into a single mechanism.

Different tools affect the economy in different ways. Government purchases form one of the components of total costs, and, consequently, demand. Like private spending, public procurement increases the level of total spending. In addition to public procurement, there is another type of government spending. Namely, transfer payments. They are not included in the GNP, however, they are included and taken into account in personal income and disposable income. The volume of private consumption rather depends not on national, but on disposable income. Transfer payments indirectly affect consumer demand by increasing household disposable income. Taxes are an instrument of negative impact on total expenditures. Any tax means a reduction in disposable income. A decrease in disposable income, in turn, leads to a reduction not only consumer spending but also savings.

Taxes and government spending are the main instruments of fiscal policy, so we will go into more detail below.