Authors:

Yekaterina V. SHESTAKOVA Cand. Sc. (Law), Applicant for Doctorate Degree

Abstract:

In both developed and developing countries, cyclical processes of growth and recession characterize their economic development. Recessions are accompanied by an economic downturn, a reduction in production, financial crises, a devaluation of the national currency, an increase in prices, as well as a growing threat to social security. In turn, crisis phenomena have a strong impact on small enterprises and entrepreneurs that cannot compete with large companies and are forced to either close the business or sell it. Crises phenomena negatively affect the entire sectors of economy causing unemployment and reduction of government guarantees. The author analyzes entrepreneurial activity under economic crisis in the Russian Federation and in the world, and indicates trends in the emergence and liquidation of small businesses. Entrepreneurial activity in the European countries is characterized, and government fiscal policy during a crisis is evaluated. The author formulates recommendations for improving taxation policy and establishes the necessity to utilize new mechanisms of economic regulation of entrepreneurial activity, tax mechanisms included.
Keywords:

Economic policy, Economic downturn, Taxation policy, Liquidation of enterprises, Emergence of enterprises, Government policy, Small enterprises, Tax planning, Taxation mechanism
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For citation: Yekaterina V. Shestakova. Government Fiscal Policy as an Instrument to Overcome an Economic Downturn. Upravlenets – The Manager, 2016, no. 4(62), pp. 34–40.