ON INCENTIVES AND RESTRICTIONS FROM THE POINT OF VIEW OF THE EQUILIBRIUM OF THE STATE’S REGULATORY INFLUENCE ON THE ECONOMY

Abstract

The article is devoted to the analytical characterization of incentives and restrictions as a regulatory 
and stimulating influence of the state on the sphere of economic activity. It is proved that the legal nature 
of the incentive is the freedom to choose lawful behavior, because the state through various regulatory 
instruments does not force the entrepreneur, but makes the lawful path of development the most attractive, 
and as a result, lawful behavior becomes not just an obligation, but a strategic asset of business, ensuring 
the proper state of its solvency and competitiveness.
The terms “incentives” and “restrictions” of economic activity are proposed as the main and complementary 
instruments of state regulation of the economy, which form the “rules of the game”, forcing business to act within 
the law (restrictions) and at the same time motivating it to develop (incentives). Incentives of economic activity 
are measures that create favorable conditions for economic entities, encouraging them to certain behavior (for 
example, investment, introduction of environmental technologies or export). Restrictions on economic activity 
are legally established frameworks, prohibitions or requirements aimed at protecting the interests of society, 
consumers, the environment and national security (licensing and quotas: permission for a certain activity (for 
example, the sale of alcohol, mineral extraction) only with a special document – a license.
The concept of currency restrictions during martial law is presented as a system of temporary administrative 
and legal measures and prohibitions established by the National Bank of Ukraine in order to ensure financial 
stability, protect the state’s foreign exchange reserves and prevent unproductive capital outflow in conditions 
of armed aggression, which aims to: eliminate legal uncertainty, because a clear distinction between standard 
currency regulation and emergency measures of wartime and legitimize the actions of the NBU by creating 
a solid foundation for resolutions of the NBU Board.