BUDGET INVESTMENTS AS AN IMPORTANT ELEMENT OF THE FISCAL MECHANISM FOR REGULATING THE INVESTMENT PROCESSES IN EU COUNTRIES AND IN UKRAINE
Abstract
In modern conditions, budget investments as an important element of the fiscal mechanism are a necessary prerequisite for the investment development of the state. In the EU countries, budget investment contributes to the implementation of profitable or unprofitable, but socially significant projects that make it possible to intensify investment processes, both at the macro and micro levels. The need to use budget investments as an incentive for economic growth in Ukraine necessitates an in-depth study of the theoretical and applied foundations for their implementation, as well as determining the role of the EU countries and Ukraine in the fiscal mechanism. The article is devoted to the formation of a holistic view of budget investments as an important element of the fiscal mechanism for regulating investment processes in the EU countries and Ukraine. The specificity of the scientific tasks that make up the subject of the study required the use of a set of special methods, the use of which helped to highlight the negative and positive aspects of budget investment in the EU countries and Ukraine and clarify their role as a component of the fiscal mechanism in regulating investment processes. In the article the role of budgetary investments in the total investments and expenditures of the consolidated budget in the EU countries and Ukraine is examined, the reasons for their relatively low efficiency are identified. The prospects for the development of budget investments in the EU countries in the post-pandemic world are outlined, which will be implemented within the framework of the Recovery and Resilience Fund in compliance with target indicators. As a result of the study, it was found that the COVID-19 pandemic and the full-scale military invasion of Russia, which aggravated all the existing socio-economic problems of Ukraine, with all their negatives, can become a springboard for a qualitatively new investment development. At the same time, it is necessary not to change the design of the fiscal mechanism, but to reorient it towards more efficient and adapted to new conditions budget investments in the development of the green and digital economy, as well as strengthening the socio-economic stability of the country.
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