FISCAL MECHANISM FOR REGULATING THE ECONOMIC DEVELOPMENT OF THE STATE

In the current conditions of global economic instability and wartime challenges faced by Ukraine, the effective functioning of the fiscal mechanism has become particularly important. Tax policy and other elements of public financial regulation serve as key instruments for mobilizing budgetary resources, ensuring macroeconomic stability, and stimulating economic development. The purpose of the article is to provide a comprehensive study of the role of the fiscal mechanism in regulating the economic development of the state under contemporary conditions. To achieve this goal, the dynamics and structure of tax revenues, the tax burden on GDP, the tax elasticity of budget revenues in relation to changes in GDP, as well as the level of tax arrears for the period 2021–2025 were analyzed. The study also takes into account key legislative changes, the impact of increased monetary allowances for military personnel, the rise in corporate income tax rates for banks, and the expansion of the military levy base for individual entrepreneurs. The results of the study show that the tax system remains the main source of state budget revenues and an effective instrument of economic regulation. The analysis of the dynamics of the tax burden indicates a gradual increase in the share of taxes in GDP, which enables the state to expand financial resources for the social sector and defense. Tax elasticity demonstrates a high level of sensitivity of tax revenues to changes in GDP, emphasizing the importance of a flexible and adaptive fiscal policy. At the same time, an increase in tax debt and the level of tax arrears has been observed, indicating the presence of fiscal risks and the need to improve mechanisms for the collection of tax liabilities. Based on the obtained results, recommendations for enhancing the efficiency of the fiscal mechanism have been proposed. Thus, the study confirms that taxes are not only an instrument for ensuring the financial capacity of the state but also a powerful mechanism for stimulating economic growth, which requires continuous improvement and adaptation to changes in the economic environment and legislation.