APPLICATION OF THE EXPERIENCE OF FOREIGN COUNTRIES IN THE SYSTEM OF FINANCIAL AND BUDGETARY RELATIONS OF THE REGION’S DEVELOPMENT

Abstract

The article analyzes the scientifically based principles and approaches of various economic schools to the role, necessity and limits of state intervention in the economy in the context of formation of financial and budgetary relations as an instrument of regional development. On the basis of the analysis, the approaches to the role of the state in the formation of financial and budgetary regulation of regional development are systematized in the context of the evolution of the views of well-known economic schools. The author emphasizes the peculiarities of the influence of each of the considered concepts on the current economic policy of countries to stimulate regional development, which is determined by a wide range of financial and budgetary instruments, including the development of the social environment of the region, allocation of budgetary funds to support infrastructure projects in the regions, establishment of tax incentives for local enterprises, as well as the development of special programs for investing in the development of small and medium-sized enterprises. It is proved that the current financial and economic crisis has a negative impact on all aspects of public life, such as socio-economic stability, unemployment, economic growth, inflation, financial stability, confidence in the banking system and the general standard of living of citizens, and requires the use of extraordinary approaches to overcome its consequences. It is emphasized that the application of the experience of foreign countries will certainly contribute to the intensification of financial and economic activity of the region's development processes on the principles of ensuring social stability, safety of the environment and improving the living standards of the region's population. The strategic guidelines for economic recovery and social development of the region can be achieved through the use of a whole arsenal of financial and budgetary instruments and means aimed at forming regional infrastructure, supporting entrepreneurial activity, implementing social programs to support and develop human potential, increasing investment in innovation and education, stimulating investment and economic recovery of the country's regions.