State economic policy – is a set of measures implemented by state bodies aimed at streamlining, correcting and maintaining the socio-economic processes of society's development that ensure economic growth and the necessary level of well-being of the country. Every state has its own development strategy, and economic policy is a tool for implementing the state's strategy.

State economic policy is also understood as a general line of economic actions carried out by the state, which gives the desired direction to economic processes through a set of measures taken by the government, through which the intended goals and objectives are achieved, and socio-economic problems are solved.

The objectives of the state economic economy are basically objective. They express the requirements of objective laws and principles of economic development. A set of goals is a certain system that includes the main, general goal, as well as specific goals related to the implementation of a particular economic or social process and contributing to the achievement of the main goal. The world experience of state regulation of the economy suggests that it should focus on achieving higher efficiency of the national economy, ensuring a steady increase in the welfare of the people and improving the quality of life of society. This interpretation of the main economic goal is extremely general and, in a certain sense, universal. Even in such a general form, it is critical, since it is aimed at strengthening the system and national security of the country.

State economic policy also has several more specific goals. The most common official goals are moderate and stable economic growth, high employment, price and currency stability, and external economic equilibrium. The listed goals are a subordinated system, the elements of which are interrelated and interdependent in the sense that any of them can contribute to or hinder the achievement of another goal. Achieving these goals creates the necessary and sufficient prerequisites for the effective functioning of the market.

Types of economic policies:

- countercyclical policies are aimed at maintaining certain rates of economic growth (regulation of macro-economic conditions);

- structural policy implies the formation of a progressive and efficient structure of the national economy;

- depreciation policy encourages the accumulation of capital, which in the future will become the basis for expanding and updating production;

- investment policy regulates capital investments for the purpose of structural adjustment of production, its technical and technological renewal and modernization;

- scientific, technical and innovation policy is aimed at the development of science and technology, ensuring strategic scientific and technological priorities, and introducing the results of scientific and technological progress into production;

- fiscal (budget and tax) policy determines the sources of financing of the state treasury, the formation of the tax system and the state budget;

- monetary (monetary) policy consists in providing the country's economy with the necessary amount of money and regulating the money and credit markets;

- price policy implies government intervention in pricing in order to influence inflation, stimulate production modernization, strengthen the competitiveness of domestic goods on the world market, and mitigate social tensions in society;

- foreign economic policy regulates various aspects of foreign trade, capital and labor migration, supports domestic entrepreneurship abroad in order to eliminate imbalances in the balance of payments and achieve non-foreign economic equilibrium;

- social policy regulates relations between social groups, forms economic incentives for participation in production, ensures effective employment of the population, creates social guarantees and conditions for improving the welfare of members of society;

- competition policy aims to develop methods for creating a competitive environment, supporting and protecting fair competition, combating monopolies, etc.;

- regional policy ensures balanced and integrated development of individual territories of the country, based on national and regional interests, by using the absolute and relative advantages of the regions;

- environmental policy ensures ecological balance, environmental protection, and the creation of safe living conditions.

Objectives of state economic policies and:

- ensuring the sustainability of the economic system;

- providing favorable conditions for conducting business;

- ensuring control over the activities of business entities;

- representation and protection of national interests in foreign economic activity;

- optimal distribution of spending and revenue powers between different levels of government;

- increasing the interest of regional authorities in expanding the tax base by creating incentives in the system of inter-budgetary relations;

- development and optimization of social, engineering, transport, market, industrial, and telecommunications infrastructure in the regions;

- development of interregional infrastructure facilities;

- reducing administrative and economic barriers to inter-regional cooperation in the movement of goods, services, labor, and capital;

- implementation of a coordinated socio-economic policy at the central and regional levels, taking into account the resource potential and competitive advantages of the regions.

In carrying out these tasks, the state acts in various roles, namely:

- the organizer, setting rules and regulations.

- the regulator, smoothing out failures or stimulating domestic markets;

- the controller, exercising control and supervision;

- defender, defending national interests in the international arena.

But here it is worth noting that the state itself is an economic entity, albeit a privileged one.

The classification of state economic policy is presented in Table 8.1.1

 

Table 8.1.1 – Classification of state economic policy.

 

Classification criteria	Policy type	Characteristics
Level of the economy	Microeconomic	Policy to support competition, regulate labor relations, etc.
	Macroeconomic	Policy of the exchange rate, foreign economic policy, etc.
Influence on the parameters of objects	Stimulating	The goal is to improve the parameters of objects through quantitative growth of indicators (income, GDP, sales).
	The deterrent	goal is to improve parameters by reducing quantitative indicators (fighting unemployment, reducing prices, reducing the budget deficit, etc.).
Directions	Industrial policy	is a long-term policy aimed at stimulating industrial production and structural modernization of the industry.
	Agricultural policy	The policy of supporting the agricultural sector and ensuring food security.
The role of the state	is liberal	Creating favorable conditions for market development.
	Centralization policy	Increasing the powers of state authorities.
Impact on the dynamics of the economy	Stabilization	Maintaining the volume of production at a level close to the potential, under conditions of full employment of factors of production.
	Structural	Changes in the structure of the economy, the proportions between factors of production in order to accelerate economic growth.
Attitude to the external environment	Protectionist	Policy of protecting the domestic economy from the negative impact of the global economy (customs regimes, import duties, etc.).
	Use the advantages of the global economy for the accelerated development of the national economy (stimulating the inflow of foreign investment, creating free economic zones, etc.).	Using the advantages of the global economy for the accelerated development of the national economy (stimulating the inflow of foreign investment, creating free economic zones, etc.).
The	Fiscal policy	Main tools used are tax collections and government expenditures (social transfers, government orders, business subsidies, etc.).
	Monetary	Policy To stabilize prices and activate the investment process, the refinancing rate, currency intervention, issuance and repayment of government securities, etc. are used.
Objectives	Anti-crisis	Recovery of the economy from the downturn, neutralizing the negative consequences of the crisis.
	Anti-inflationary	Price stabilization and strengthening of the national monetary unit.

 

The State should promote long-term economic development.

Economic development is qualitative improvements aimed at improving the living conditions of the country's population, and structural improvements of the economic system, the purpose of which is to create new economic clusters in the economy, as well as to improve the previous ones. In national-oriented states, economic development contributes to increasing the social welfare of the entire population of the country, and not a separate part of it, in contrast, for example, to economic growth, which cannot fully indicate an improvement in the quality of life of the entire population of the country, since it can be provided at the expense of its narrow stratum.

The national model of State economic policy should ensure:

- national economic security, which is of particular importance in the context of a tough struggle for the world market, as well as taking into account the turbulence of the world economy;

- innovative development of the economy, which increases the level of competitiveness of domestic products, as well as stimulates the development of all sectors of the economy;

- structural diversification of the economy, which reduces the dependence of economic development on one sector of the economy, giving stability to the entire economic system of the country;

- development of priority sectors of the economy, taking into account national interests, which should be based on the existing economic potential and proceed from the implementation of strategic state tasks^[86].

In conclusion, it should be noted that the main idea of the state's economic policy should be the idea of the supreme value of the human person. A person is the main value. In this formulation, economic policy as state intervention (creation of framework conditions for economic entities) is carried out with the ultimate goal of harmonious and comprehensive development of the individual. But this goal is mediated and realized through the development of productive forces and the improvement of distribution relations.

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^[86] Molkova, A. A. Fundamentals of Modern State Economic Policy // Bulletin of Moscow University. Series 21: Public Administration (State and Society). – 2017. – No. 3.