The paper focuses on specific effects of each of the element of fiscal policy transmission mechanism on real economy sector. Key approaches to fiscal policy implementation and fiscal transmission channels definition are highlighted. A formalized description is suggested as to the effect of fiscal impulses on main macroeconomic indices. A necessity of implementing of macro-prudential fiscal policy aimed to meet the financial crisis is emphasized. Using logical method and comparative analysis, the author made an attempt to formulate general principles of taxation, expenditure, and government debt management. Crucial ways to design financial policy are outlined.

Keywords: fiscal policy transmission mechanism, taxation, government spending, aggregate demand, budget deficit.