2. Think of the verbs that are most commonly used with these nouns:

taxes, decision, budget system, burden, attention, emphasis, guidelines, target, objectives, macroeconomic performance, policy, spendings;

c) Think of the nouns that are most often used with these verbs:

to introduce, to generate, to perfect, to attain, to overcome, to utilize, to adopt,

to pursue, to cut;

d) Make your own sentences with any five word combinations from (b) and (c).

e) Match the verbs from (a) with the nouns from (b) below:

a) to establish b) difficulties

to face efforts

to make situation

to eliminate deficit

to exacerbate priorities

to improve stability

to ensure interbudgetary relations

to design law

to enforce policy

f) Write out from the main text international words like: concept, mechanism, etc. Tran­scribe and read them aloud.

Ex. 6. a) Supply the articles where necessary.

2. Write down 3-5 questions about the texts.

3. Compare the problems the two countries are trying to solve. A) Financial Policy

... term is broad and its definition is likely to differ somewhat from country to country. On the widest definition, it covers ... fiscal policy (budgetary policy, i.e., policy on government revenues and expenditures), monetary policy, credit policy and management of government debt. The core of financial policy is fiscal policy. Some economists believe that fiscal policy is synonymous with ... state budgetary policy. There exists, however,... wider definition that would cover the policy on the level and composition of all central and local government revenues and expenditures.

Financial policy whose main goal is provision of financial resources for ... implementation of ... state programmes of economic and social development is part of ... complex of economic policies influencing ... level and pattern of economic activity and income distribution.

The economic policy of... Ukraine is aimed at creating conditions for sustained economic growth by reducing ... inflation, by ensuring ... free operation of markets of goods and factors of production, by achieving ... balance of payments stability. These goals can be achieved mainly by elaborating and implementing ... adequate fiscal policy.

The fiscal policy implemented these days in Ukraine presupposes first of all the reform of... federal budget. The ongoing budget reform includes :… shift to the new budget classification, introduction of … better system of interbudgetary relations, changes of budget planning principles, shift to ... treasury system of budget execution. Over ... last few years the collection of tax revenue has tended to fall. Thus the Government's fiscal adjustment programme provides for a package of measures aimed at increasing revenue collection through the reform. Attention is being paid to improvement of ... tax legislation. The new tax administration system shall meet... following requirements: broad tax base, well-balanced system, equitabable and transparent character, symplicity of administration. The main aim of ... tax reform is to strengthen ... budget, to provide financial resources for the budget system in the amount necessary to finance ... state spendings for ... state apparatus, for defence, health care, and ... culture.

Words you may need:

Англійський	Російський	Український
management of government debt	управление государственным долгом	управління державним боргом
core	сердцевина	серцевина
treasury system of budget execution	казначейская система исполнения бюджету	казначейська система виконання бюджету

b) Fiscal Policy in the UK

Fiscal policy in ... UK is guided by two strict rules:

• ... Government will borrow only to invest and not to fund current spending;

and

• net public debt as ... proportion of GDP will be held at ...stable and prudent level.

These rules mean that... taxpayers pay for ... current spending and require public borrowing to be kept under firm control.

The Finance Act 1998 established a new Code for Fiscal Stability, which requires fiscal and debt management policy to be carried out in accordance with five key principles:

• transparency in setting fiscal policy objectives, the implementation of fiscal policy and the publication of the public accounts;

• stability in ... fiscal policy-making process and in ... way that fiscal policy affects... economy;

• responsibility in the management of the public finances;

• fairness, including between ... generations; and

• efficiency in the design and implementation of fiscal policy, and in managing both sides of... public sector balance sheet.

In practice it means that the public finance and fiscal strategy in ... UK will be aimed at setting overall spending limits for individual departments and planning and controlling public expenditure more strictly within... framework of capital and current budgets.

Ex. 7. a) Supply the prepositions where necessary.

b) Write down 3-5 questions about the text.