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Ukraine's economy, as compared to other neighbouring European countries, is lagging behind. Unstable political situation, significant tax pressure, various administrative barriers, complexity of tax administration and with obtaining permits, technical regulation, certification and standardization, frequent sudden inspections by state control bodies, limited opportunities for the use of financial and credit resources, weakness of material, technical, financial, managerial and personnel components of business entities – all these factors do not promote the entrepreneurial initiative in this country. The key precondition for rising the prosperity level raising and effective social and economic development is strengthening the competitiveness of the national economy through the coordinated work of the state and its budget and fiscal institutions. This study reveals the theory and the methodology of the formation and implementation of fiscal policy in Ukraine. Peculiarities in the development of the entrepreneurial environment in Ukraine are analysed and fiscal mechanisms are defined with the purpose of activating further entrepreneurship development.

BUDGET AND FISCAL POLICIES’ MODERNIZATION AS A FACTOR OF NATIONAL COMPETITIVENESS INCREASE (THE CASE OF UKRAINE)