School of Business and Management of Technology of Bsu

State educational establishment

“School of business and management of technology of BSU”

Department of business communication

The course paper on the disciplines “macroeconomics” and “microeconomics”

topic: Finance and fiscal policy

Student                                                ____________ (sign)

2d course, 514 group, BA                                                                   M.N. Doroshenko

                                                             _____________(date)

Supervisor                                           ______________(sign)

                                                                                                           I.V. Zhabenok

                                                             ______________(date)

MINSK 2016

ABSTRACT

Course paper:  32 pages, 3 graphs, 3 tables, 7 formulas, 14 resources.

FINANCE, STATE BUDGET, BUDGET DEFICIT, FISCAL POLICY, FISCAL MULTIPLIER, EXPANSIONARY FISCAL POLICY, CONTRACTIONARY FISCAL POLICY, GOVERNMENT SPANDING, TRANSFERS, AUTOMATIC STABILIZERS.

The object of the study is the notion of finance and fiscal policy of the Republic of Belarus.

The subject of the study is characteristics and ways of realization of the fiscal policy in the Belarusian economy in 2010-2015.

Objective: to investigate the impact of the fiscal policy on the Belarusian economy.

Methods: selection, sorting and analysis of data and statistics.

CONTEXT

INTRODUCTION        4

CHAPTER 1 THE CONCEPT OF FINANCE        6

1.1        Finance and its characteristics        6

1.2. The finance of households and firms        7

1.3 The finance of government. State budget        9

CHAPTER 2 FISCAL POLICY        14

2.1 Fiscal policy and its instruments        14

2.2 Types of fiscal policy        17

CHAPTER 3 FISCAL POLICY IN BELARUS        22

3.1 Belarusian budget in 2010-2015        22

3.2 Fiscal policy in Belarus in 2010-2015        25

LITERATURE        30

1. INTRODUCTION

Fiscal policy is one of the most important parts of the economy of any country, because in the modern world it defines the basic ways of the state financial resources usage, methods of financing and main sources of the state budget replenishment.

Methodological basis of the fiscal policy of the state was laid by John. Keynes. He formulated the principles of active economic policy which affects an aggregate demand. Unlike the representatives of the classical school, who believed that the proposal gives rise to demand, Keynesians believed that an aggregate demand creates an aggregate supply.

In the 1930th   after The Great Depression the importance of fiscal policy has increased significantly. The followers of John Keynes considered it as the most effective tool which can be used to influence the economic growth.

         Government regulations play the vital role in the building and developing of the economic structure of any modern society. Financial system and its main parts such as state budget and taxes are very powerful instruments in the process of economic regulation in terms of market conditions.

It is a well-known fact that the budget at all levels plays a huge role in the development and prosperity of the state, in the promotion of scientific and technological progress (financing of R&D), in development of the overall economy through investment, subsidies, etc.

Government of any country always maintains some fiscal policy, regardless of whether it is aware of it or not. The real question is whether this policy will be constructive or it will be unconscious and inconsistent.

The object of the study is the notion of finance and fiscal policy of the Republic of Belarus.

The subject of the study is characteristics and ways of realization of the fiscal policy in the Belarusian economy in 2010-2015.

Objective: to investigate the impact of the fiscal policy on the Belarusian economy.

To reach the objective, the following goals were set:

• to understand finance and its characteristics;
• to analyze finance of different economic institutions;
• to determine the essence and goals of fiscal policy;
• to understand types and instruments of fiscal policy;
• to analyze features of the Belarussian fiscal policy and its budget in 2010-2015

While doing research, the information from professional books, legislative and business portals, economic newspapers and statistics was investigated.

Course paper consists of 32 pages, contains introduction, 3 chapters, 7 paragraphs, conclusion and the list of resources used.

1. CHAPTER 1 THE CONCEPT OF FINANCE

1. Finance and its characteristics

Finance is one of the most important economic categories which reflects the economic relationships in the process of money creation and usage. The appearance of finance goes several thousand years back into history. In fact, it began its development with the emergence of monetization and emergence of the states, till nowadays finance takes part in practically all spheres of people activities. Financial relations cover that part of the relations which is connected with the development and usage of money. Thus, we can say that Finance is the economic relations carried out primarily in the form of money between the major economic entities - firms, households and government.