Fiscal policy – Use of public revenues and expenditures for acting on macroeconomic aggregates, ie overall economic activity. In the short term, the fiscal expansion act on the increase in gross domestic product and employment. The long-term effects of fiscal expansion are limited, because they cause inflationary pressure, an increase in interest rates and declining investment and production. In times of recessions (declining economic activity) governments use the so-called. Discretion fiscal policy for the revival of economic activity, by reducing tax rates and increasing public spending, or through a combination of both measures. Reverse is handled in time of expansion (inflationary pressure in the economy). Fiscal policy can act through the so-called. Automatic stabilizers (governments do not take any measures, and tax involves and public spending are automatically adapted to the state of the economy – expansion or recessions). Fiscal policy in SFRY and SRM was characterized by inconsistency and inefficiency arising from non-standard and mechanically related tax revenues of the federation, republics, autonomous provinces, municipalities and self-governing interesting communities, and at the same time, they also called as centers of financial decision-making and spending on Public revenue. In the early transitional years, fiscal policy was expansive (budget deficits amounted to -9.8%, 1992, and -13.4%, 1993) and created inflationary pressure in the economy. During 1994 Budget deficits (central budget and extra-budgetary funds) fell to -2.7% and remain extraordinary low to today’s days (the exception is conflicting 2001. and Post Conflict 2002). They remained low, despite the significant obligations of the budget tied to the servicing of external debt and especially the internal debt (rehabilitation of banks, restructuring of enterprises, obligations to the old foreign currency savings and denationalization). From this aspect, fiscal policy made a significant contribution to the maintenance of price stability, the stability of the exchange rate and in general of fiscal sustainability. Although, in general, fiscal policy in Macedonia after 1992. It can be marked as prudent, it is confronted with certain weaknesses: (1) an unfavorable structure of the budget costs (c. transition of the Macedonian economy) and (2) pronounced restrictiveness in certain years, and together with monetary contractions, they contributed to The emergence of episodes of deflation in the Macedonian economy (1999 and 2004) and were one of the reasons for the low rates of economic growth. Exhibition: EBRD, transition report for the corresponding years. Lit.: M. Park, M. He knocked, K. Matthetos, Economic, FFFTH Edition, Paarson Education, London, 2003; K. Bogoev, J. Atanasovski, the tax system of Macedonia, Skopje, 1994. T. F.
Original article in Macedonian language Cyrillic alphabet
Кириличен напис ФИСКАЛНА ПОЛИТИКА