FINANCIAL PSYCHOLOGY OF TAXPAYERS AS A FACTOR IN THE EFFECTIVENESS OF BUDGETARY POLICY
Abstract
Budgetary policy is traditionally considered through the lens of macroeconomic indicators, legal regulation, and administrative mechanisms; however, this perspective increasingly proves insufficient for achieving sustainable fiscal outcomes. The underestimation of taxpayers’ behavioral factors significantly reduces the effectiveness of even economically justified budgetary decisions. This article is devoted to studying the impact of taxpayers’ financial psychology on the effectiveness of the state’s budgetary policy.
The aim of the study is to substantiate the role of taxpayers’ financial psychology as a factor influencing the effectiveness of budgetary policy. Using general scientific and specialized methods, theoretical generalization and system analysis, as well as expert evaluations, the paper identifies contemporary approaches to researching taxpayers’ financial psychology in the context of budgetary policy formation. The author analyzes psychological factors that determine citizens’ tax behavior, including tax culture, trust in authorities, perception of tax system fairness, and willingness to fulfill tax obligations. Tools for psychologically influencing tax behavior are also identified.
Based on the study results, the interconnection between taxpayers’ psychological attitudes and the effectiveness of budget revenue formation is substantiated. The losses to the state budget resulting from tax evasion are assessed, and the reasons for citizens’ and businesses’ reluctance to fulfill their tax obligations are identified. Recommendations are formulated for integrating psychological approaches into the system of budgetary policy formation and implementation in Ukraine. It is demonstrated that ignoring psychological factors leads to reduced tax compliance, growth of the shadow economy, and undercollection of budget revenues. Therefore, the development of theoretical and applied foundations for integrating psychological approaches into Ukraine’s budgetary policy is a necessary condition for improving tax discipline, strengthening the state’s financial security, and fostering a responsible fiscal environment.
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