Managing Public Finance as an Economic Policy Instrument

Abstract

Under the conditions of imperfect market, the role of the state in economic development of a country is unavoidable. In this process, the state uses various instruments and applies various measures. Fiscal policy, i.e. public finance management, is one of the very important instruments. The manner of acquisition, allocation and spending of budget funds can impact to a great extent the entire economic development of a country. All countries are endeavoring to establish the models of optimum taxation on the one hand, and of efficient use of budget funds on the other. Due to the specificity of each national economy and different goals set, each country must develop its own models, but it must not neglect some basic principles whose application in practice of successful economies has had good results.