degree of confidence in the proposed measures. Thus, when making managerial
decisions regarding the budget expenditures reduction in order to balance the budget
and reduce its deficit it is advisable to give priority to measures aimed at reducing
current expenditure’s items, since this will have a more positive effect on the economic
development’s pace than the public investment reduction.
The state must concentrate its limited resources on clearly defined basic functions.
Budget policy should be based on the relative state participation effectiveness
assessment in various economic activity’s spheres and minimize the budgetary
resources distribution in areas where the state’s participation is unnecessary or
ineffective.
In the context of the globalization and the transparency of most economies in the
world, when crises are of an all-embracing nature, and among the factors that trigger
them the institutional ones become dominate, we must talk about the decisive role of
the state in overcoming the crisis phenomena, the need for intervention in market
mechanisms and the introduction of manual control of the situation. At the same time,
it should be emphasized that the modern socio-economic structure of Ukraine, which
was formed as the economy institutional transformation result, is characterized by the
strengthening of the state’s role as a public goods producer, as is the case for most
European countries.
CONCLUSION
During making managerial decisions in democratic societies it is necessary to find
a compromise between the state and the population of the country - taxpayers and
public services recipients, since the public good value is determined by the subjective
and psychological assessments of its consumers. Lack of the state government trust on
the part of the population may ignore the implementation of the proposed "rules of the
game" by changing the taxpayer’s jurisdiction, switching to shadow business practices,
increasing consumer confidence in society, or even switching to open actions
disobedience that will lead to the emergence threats to fiscal stability in the country.
Unfortunately, the change in the social way of life in Ukraine was not ensured by
appropriate economy modernization and rethinking the nature of the relationship
between the state and society over the volume of guaranteed public goods and services
provision. The lack of an inventory of social privileges (benefits) that the state provides
to its citizens allows certain citizens categories to use several of them simultaneously,
which adversely affects the implementation of the budget system’s fairness and
impartiality principle and generates consumer sentiment in society [11, p.65].
In the context of fiscal consolidation and post-crisis economic recession, it is
imperative to reduce the social benefits list and state support directions, which will
increase those remaining benefits’ financing and increase the public services’
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