Ukraine’s Investment Potential in Conditionsof Economic Instability

Abstract

In the article to determine the state and features of the investment potential of Ukraine in the current financial and economic instability, the features of the formation of state budget revenues are studied. Statistical data on investment inflows are given, and economic development of investment activity is analyzed. Sources of investment activity are revealed. Tools for increasing investment activity in Ukraine are presented. Financial support in the system of incomes and methodological bases of the system of taxation of natural persons in Ukraine are considered. The method of taxation of personal income tax in Ukraine and the impact of this tax on the level of state budget revenues of Ukraine are analyzed. The relationship between personal income tax and military duty has been identified. Examples of international experience of personal income taxation are given. It is established that the current model of personal income tax collection is imperfect. It is established that each subsystem in the income system has its own factors that affect the formation of income and ensure their growth. The essential characteristics of the budget classification are noted, which makes it possible to understand for what purpose each type of income was created. This reflects the economic significance for comparison with other countries and previous years.The financial condition and structural analysis of budget classification indicators are analyzed, the main problems and positive aspects that cause imbalance of indicators are considered, the analysis of the dynamics of revenues of the State Budget of Ukraine in relation to GDP is carried out. The conclusions provide recommendations for improving the revenue side of the budget, in order to eliminate shortcomings, the concept of reforming the personal income tax in Ukraine is proposed.

Processes of globalization and integration of the world economy at the beginning of the XXI century. increased the dynamism of the development of international financial and investment infrastructure and foreign direct investment flows in many countries. Ukraine, as a country with a developing economic system, strives for economic and financial growth through the use of stable investments.

In modern conditions of limited domestic investment resources, it is important to identify opportunities for additional attraction of international investment and their effective use. In order to obtain economic growth and attract funds from international investors, a number of factors must be identified that affect the formation and proper use of investment potential. The urgency of the study is due to the need to intensify the innovation and investment process in Ukraine in the context of global financial and economic instability. Foreign direct investment is an important component of the efficient functioning of the country's economic system and contributes to increasing production, improving living standards, which is the main guarantee of economic stability.At the same time, foreign direct investment can lead to monopolistic actions of economic entities as a result of the loss of national economic interests through the strengthening of monopolistic associations.