Specific features of budgetary tools use during the economic crisis

Abstract

Introduction. The financial and economic crisis, which becomes more and more common in the global economy, affects the national economy of each country. In order to overcome the crisis and its effects of conventional budget is not enough to use ordinary budget tools. They do not bring the expected results due to changes in patterns of budget mechanism.

 Purpose. The main objective of the study is to test the hypothesis as for the changes of the efficiency of budget instruments in overcoming the crisis and stimulating the economy emerges out of crisis. Object of the study is the fiscal policy in terms of crisis. The subject of the study is the budgetary instruments and peculiarities of their impact into the socio-economic development.

Method (methodology). In the article we have used the methods of abstraction (forming of hypotheses about contingent regularities of budgetary processes during the crisis); formalization (providing the information as for the structural characteristics of the budget and the national GDP in a formalized form); technical analysis (detection of lags); dispersion analysis (evaluation of the reliability of detected budget and production of GDP); regression analysis (analysis of the dependence of the structural component of budget on production of GDP and vice versa) with the usage of  systematic and synergetic approaches.

Results. We hypothesized that the budget in the period of crisis acquires the features of complex systems. This hypothesis is confirmed by regression analysis with proven lags. It is one of the arguments of direction of causal relationship between structural components of budget and production output of gross domestic product. It is revealed the dominance of national GDP impact of the structural components of the budget over the opposite effect. The result is a change of idea about the effectiveness of budgetary instruments to stimulate and economic recovery. Results of the study can be taken into account when forming the main objectives of fiscal policy during the crisis period.