THEORETICAL FOUNDATIONS AND PRACTICAL ASSESSMENT OF FISCAL INSTRUMENTS IN SUPPORTING ECONOMIC SECTORS

Abstract

The article examines the theoretical, methodological and practical aspects of using fiscal instruments to support economic sectors. The study systematizes the economic nature of fiscal policy, the evolution of tax and budget instruments, and their role in stimulating investment activity, production modernization, employment and fiscal sustainability. Particular attention is paid to the relationship between tax incentives, subsidies, budget transfers, public expenditure and targeted financial support in the development of industry, agriculture, services, export-oriented production and small business. The article argues that the effectiveness of fiscal instruments should be assessed not only through the amount of allocated resources or granted preferences, but also through measurable sectoral outcomes, including value added, investment growth, productivity, employment, export potential and the stability of budget revenues. Based on the materials of the first and second chapters, a conceptual and analytical framework is proposed for evaluating fiscal support mechanisms in the context of sustainable economic growth.