Fiscal policy

If we pay attention to the Constitution of the Russian Federation, we can say that the budget and credit policy in our country is usually carried out by the government, since this is part of its duties. Its implementation takes place at various levels.

The state budget is a form of funds collected from the population and spent for public needs, the receipt of which is mainly due to taxes and levies on the property of citizens and the profits of enterprises. With the help of these funds, there is funding for the courts, the army, local government and so on. This is the so-called plan of the state, which is drawn up for a whole year and has the same force as the law. It involves three functions:

1) Stabilization. Its purpose is to pursue macroeconomic policies.

2) Redistribution. That is, the income received by the state is distributed in the interests of the whole society.

3) Allocation. The task of this function is to create a financial base for the state to produce public goods.

The fiscal and tax policy of the state implements such functions as the creation of various benefits for society, control over the structure of national incomes and their redistribution. Its implementation, most likely, is based on one of the concepts that are called "neutral" and "functional."

The first task is to ensure that Russia's fiscal policy is tied to the most effective budget balance, while providing for a neutral attitude to processes affecting the social and economic spheres. In other words, such a concept is based on purely financial tasks related to the most efficient allocation of funds that were withdrawn. The fiscal policy pursued by the second concept includes the implementation, in addition to financial, of economic functions. It is based on the principle that the balance of the state budget is not as important as the balance of the national economy. Proceeding from this, macroeconomic stabilization is accompanied by a surplus, then a budget deficit.

Most of the budget of any state is tax collection from the population. Therefore, fiscal policy is an important component in the implementation of the normal functioning of state bodies. It includes a whole system of methods and legal norms related to tax administration. The main elements of all tax systems are types of taxes and, of course, the principles of their accrual. With their help, the whole state is financed.

Tax breaks are the most important tool that contains fiscal policy. Since it is with their help that the impact on the economy is being effected. It plays an important role, since the state, thus, can carry out, for example, stimulating the activities of enterprises, which contributes to economic growth. And this is the task of each state.