FORMAL RULES IN ENSURING THE FUNCTIONING OF THE FISCAL MECHANISM FOR REGULATING INVESTMENT PROCESSES IN UKRAINE IN THE CONTEXT OF EUROINTEGRATION

Abstract

The state, influencing the organization of fiscal relations by establishing formal rules, directs the established fiscal relations, manages the channels and directions of fiscal flows, clarifies the proportions of the distribution of financial resources and, thus, regulates the investment development of the economy. Therefore, the issue of defining formal rules that ensure the functioning of the fiscal mechanism, which depends not only on its effective development, but also the impact on investment processes in the socio-economic system. The article is devoted to the consideration of formal rules on the basis of which the fiscal mechanism for regulating investment processes functions, definition of positive and negative aspects of their action, and also possibilities of adaptation to the European standards. The specifics of the scientific tasks that are the subject of the study required the use of a set of special methods, the use of which helped to outline the formal rules of operation of the fiscal mechanism for regulating investment processes. In the article the constitutional norms, as well as the formation and development of codified legislation relating to the fisc, are examined. The influence of institutional factors on the timeliness of adoption and implementation of the Law on the State Budget of Ukraine and decisions on local budgets, which is directly related to the implementation of budget investments, is considered. The analysis of investment laws is carried out and the tools of the fiscal mechanism used to intensify investment processes are determined. A review of bylaws regulating the technical side of budget investments are carried out. The study proved, that the formal rules of functioning of the fiscal mechanism for regulating investment processes in Ukraine should be supplemented by fiscal rules, that have a long history of implementation in the European Union.