Abstract:

A question about fiscal mechanisms reforming is obvious for lots of states in modern conditions of world economic and financial crisis. Study of formation and improvement directions of fiscal mechanisms is very vital for economic science, budgetary and tax practice. Modernization of fiscal mechanisms within budgetary tax policy is a defining direction of general development strategy for public and municipal finances.

An integrated approach to fiscal mechanisms' research is described (hierarchy of fiscal mechanisms, objectivity of fiscal mechanisms, functioning of fiscal mechanisms on the basis of economic processes, information basis of fiscal mechanisms, formation and functioning of fiscal mechanisms on the basis of steady direct correlations, additivity, optimization and possibility to achieve specific result on the basis of operating influences). Classification of fiscal mechanisms of region sustainable development is proved. It is done taking into account exogenous and endogenous levels of fiscal mechanisms functioning. The conclusion states that fiscal mechanisms include the most stable, long-term relations of fiscal systems which can be used by management body for regulating impacts on systems in general.