IMPERATIVES AND RISKS OF THE STATE BORROWINGS’ ACCUMULATION

2018 ◽  
Vol 2018 (6) ◽  
pp. 26-43
Author(s):  
Vasyl KUDRYASHOV ◽  
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Budget Deficit ◽  
Peak Load ◽  
Banking System ◽  
The State ◽  
State Budget ◽  
State Sector ◽  
Budget Support ◽  
Analysis Of Dynamics

Analysis of dynamics of indicators of the state and the state-guaranteed debt in Ukraine in recent years is carried out and imperatives of the growth of public debt are determined. It is found out that its primary factors were the expansion of financing of the state budget for budget support of the state sector of economy, banking system, as well as the financing of the budget deficit. It is concluded that the solving of such tasks was carried out under conditions of aggravation of financial risks, namely: revenue mobilization, attraction of an additional resource for the purpose of financing the budget deficit and deficit-debt adjustment, under-fulfilment of privatization plans, admission of high inflation, as well as depreciation of the national currency. It is noted that the growth of public debt was due to an increase in the state borrowings, which were used to repay obligations, cover the costs of conducting the active operations and shift part of the borrowings of corporations and institutions to the state budget. The conduct of active operations was aimed at providing the financial support to the state banks and state institutions, DGF and capitalization of some private banks. Changes in the volume of the state borrowings are disclosed in terms of the ratio of their internal and external components. The reasons and consequences of growth of costs of deficit-debt adjustment (active operations within the framework of the state budget) are determined. Under conditions of non-fulfillment of revenue plans from privatization of the state property, such a policy will lead to aggravation of fiscal risks (retention of high indicators of the state borrowings and debt financing at the expense of the NBU and the state banks). The policy of state borrowings (in terms of internal and external components) turned out to be inconsistent: sharp changes were allowed in attracting the resource from internal and external sources, and the implementation of debt policy was marked by significant peak load on the state budget as well as their high profitability both in domestic and foreign markets. The volume of loan servicing continued to grow, which became a factor of increasing budget expenditures. Financing of borrowings using the resources of the NBU and the state-owned banks were reaching high rates. The author proposes the directions of fiscal policy aimed at restraining and restricting the state and the state-guaranteed debt by introducing changes to fiscal policy in Ukraine.

scholarly journals COMPONENTS OF THE BUDGET SYSTEM OF UKRAINE AS FACTORS OF FINANCIAL AND ECONOMIC SECURITY

2020 ◽  
Vol 1 (3) ◽  
pp. 29-34
Author(s):  
Oleh Holovko ◽  
Lilia Solomonova
Keyword(s):  
Public Debt ◽  
Financial Stability ◽  
Budget Deficit ◽  
Economic Security ◽  
The State ◽  
State Budget ◽  
Decentralization Reform ◽  
State Pension ◽  
Practical Recommendations ◽  
Budget System

The purpose of this study is to analyze the components of the budget system of Ukraine as factors of financial and economic security to identify negative trends in the context of the implementation of decentralization reform. It is proved that the research of this direction should start with the analysis of the conceptual apparatus and structural relationships between categories. At the top level of the hierarchy there is the category of national security of Ukraine, which, according to current legislation, means the protection of state sovereignty, constitutional order and other national interests of the country from real and potential threats. The category of financial and economic security is also often used in the scientific literature. Given the above classification, in this case we are talking about the financial security of the country as a factor of economic security. Methodology. To stimulate economic development, the practice of modern budget regulation provides for the presence of a planned deficit, which is a source of local and public debt. Depending on the areas of its financing, there are domestic and foreign, local and national debts. The relationship between the above indicators determines the level of budget security of the country, which is one of the most important factors of financial stability was identified in the work. Results. It is proved that, according to the results of the analysis, practical recommendations on budget policy of Ukraine as a factor of financial and economic security should take into account the following steps: against the background of growing social burden on the budget, it is necessary to continue the redistribution of budget funds in favour of the regions, which will increase their level of financial autonomy and reduce the amount of transfer payments; pursue a strict restriction policy to prevent the growth of the state budget deficit and uncontrolled increase in debt; the problem of pension provision increases the burden on the state budget every year. It is necessary to take measures to create a cumulative system of state and non-state pension insurance. Practical implications. The practical consequences prove that in 2016 the public debt of the consolidated budget of Ukraine reached a record 81% of GDP. However, effective economic and budgetary policy allowed to reduce it in 2019 to 50.3%, which was positive. Moreover, the share of external debt was 29.2%. The high budget deficit in 2020 will lead to an increase in debt to 58.7% of GDP, which offsets the previous positive changes. It is determined that at the beginning and at the end of the study period the expenditures of the pension system of Ukraine have been equal to about 10% of GDP. At the same time, financing from own revenues has decreased from 8% to 6%, which is negative. The most critical situation became after 2013, when this indicator began to decline rapidly, increasing the burden on the state budget. Value/originality of the work is an analysis of the components of the budget system of Ukraine as factors of financial and economic security, which in contrast to the existing ones is based on the need for further implementation of decentralization reform and allows to develop practical recommendations for budget regulation.

scholarly journals THE MECHANISM OF FISCAL POLICY

2020 ◽  
Vol 1 (1) ◽  
pp. 28-32
Author(s):  
Lidiia Fedoryshyna
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Budget Deficit ◽  
Absolute Magnitude ◽  
The State ◽  
National Debt ◽  
Agricultural Insurance ◽  
Theoretical Approaches ◽  
Definition Of ◽  
Finance Theory

The purpose of this article is to study fiscal policy, which is one of the methods of regulating the country's macroeconomic policy. Theoretical approaches of scientists to the definition of the term "fiscal policy" are investigated. The contents and principles of the functioning of the mechanism of fiscal policy are disclosed. Method. Theoretical approaches to the definition of mechanisms and discrete components of the fiscal policy of the state and its criteria characteristics have been developed. The research has been based on the use of a systematic approach to the consideration of fiscal phenomena, on the fundamental principles of economic theory, systems theory, theory of finance, theory of taxes, etc. Results. It is observed that the budget deficit and the national debt are closely linked: the increase in the budget deficit leads to an increase in the national debt. But the absolute magnitude of the budget deficit, and therefore of the public debt, does not provide enough information for economic analysis. It is necessary to know what processes the budget deficit is serving, what changes in the reproduction cycle it reflects. It is also very important to measure changes in public debt in relation to changes in GDP. In addition, the tax burden is increasing as a result of these changes. Value/originality. It is determined that along with the expected changes in the methodology of calculation and procedure of tax payment, taxpayers are also concerned about the question of changing the tariff grid by the total amount of taxes due in absolute terms and in relation to the volume and resultant indicators of production activity (revenue, profit). An innovative tariff policy has been proposed and opportunities for using non-traditional agricultural insurance products have been revealed. Recommendations to improve the fiscal policy of the state have been made. The conceptual platform for harmonizing the mechanism of fiscal policy regarding economic entities is substantiated.

EFFECTS OF A PUBLIC DEBT AND DEFICIT BUDGET

2018 ◽  
Vol 8 (2) ◽  
pp. 140-144
Author(s):  
Daniel Szybowski
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Budget Deficit ◽  
Foreign Capital ◽  
The State ◽  
Financial Policy ◽  
Foreign Investments ◽  
State Budget ◽  
The Public ◽  
High Level

The aim of the article is to present a problem concerning the effects of the public debt and the budget deficit. The public debt is a result of the lack of adequate income earned by the financial sector, what means that it must incur liabilities to be able to carry out its tasks or improper management of the state budget funds - what results in the budget deficit. The size of the state's debt and the public debt has a very large impact on the socio-economic situa-tion of the country as well as on its financial policy. Due to the high indebtedness of the state, the whole economy is disturbed, the state authorities are not able to allocate an adequate amount of the funds to stimulate invest-ments. Such actions slow down the dynamics of economic development, what means that the state authorities most often look for savings. Unfortunately, this usually happens at the expense of the ordinary(?) citizens. Countries that have a high level of the debts tend to lose their credibility internationally. This may result in the fall in the foreign investments and the outflow of the foreign capital.

scholarly journals Dług publiczny w ujęciu ekonomicznym i prawnym. Zmienność długu publicznego w wybranych gospodarkach pozaeuropejskich po 2007 na tle państw Unii Europejskiej

2015 ◽  
pp. 77-109
Author(s):  
Dariusz Malinowski
Keyword(s):  
Public Finance ◽  
Public Debt ◽  
Purchasing Power Parity ◽  
Budget Deficit ◽  
The State ◽  
Power Parity ◽  
State Budget ◽  
Market Prices ◽  
European Economies ◽  
Legal Methodology

The two main aims of the text were comparative analysis of several legal methodologies for defining public debt developed by international organizations and presenting the Polish legal methodology of calculating public debt while pointing out to the differences between methodologies. Presentation of the concept of the budget deficit and public debt in economic theory served as introduction to the description of legal approach to public debt. The second part of the study examines the economic volatility of the state budget deficit and public debt in selected non-European economies after 2007. The analysis was carried out on a group of sixty-largest economies in the world by GDP at market prices by purchasing power parity. The state of public finance of non – European economies is shown in comparison with the state of EU public finance

scholarly journals Determinanty zmian deficytu budżetu państwa i długu publicznego w krajach Unii Europejskiej w 2010 roku

2012 ◽  
pp. 77-97
Author(s):  
Dariusz Malinowski
Keyword(s):  
Public Debt ◽  
Budget Deficit ◽  
The State ◽  
European Countries ◽  
Eastern European ◽  
State Budget ◽  
Member States ◽  
Eu Member States ◽  
Percentage Points ◽  
Eastern European Countries

The article contains an analysis of the budget deficit variability and public debt variation in the EU in 2010. Comparing the scale and economic determinants of changes in the state budget deficit and public debt in 2010 in the Central and Eastern European EU member states and in other EU countries we reach the following conclusions: 1) The average scale of the improvement of the economic result of the state budget as % of GDP was higher in the Central and Eastern Europe countries comparing to other EU member states. In the first group of countries, economic results improved on average by 1.1 percentage points, and in the other by 0.75 percentage points. 2) In most Central and Eastern European countries, as well as in most other EU countries the decline in budgetary expenditure, expressed in% of GDP was the only or major determinant of the reduction of the economic deficit of the state budget as % of GDP. Reduction of public spending in GDP was in turn the result of reducing the fiscal growth of nominal spending. In the Central and Eastern European countries in 2010, the nominal budget spending, decreased on average by 0.4%, while in 2009 increased on average by 16.1%. 3) In the rest of the EU average increase in public debt as % of GDP was higher than the average increase in public debt in the countries of Central and Eastern Europe. For the rest of the EU member states, public debt at the end of 2010 as % of GDP was by 4.65 percentage points higher than at the end of 2009, and for the Central and Eastern European countries by 4.14 percentage points higher. At the end of 2010 Central and Eastern European countries had significantly lower average level of public debt as % of GDP in comparison with other EU members states (38.9% of GDP and 74.8% of GDP). In most other EU countries there is virtually no limit for increasing the public debt, therefore there is no limit for a high budget deficit. Among Central and Eastern European EU member states only Hungary are in similar situation while Poland is close by. Therefore, most other EU countries and some countries of Central and Eastern Europe must immediately substantially reduce the scale of the economic deficit of the state budget. Countries where public debt is relatively low should not delay further restrictions of the state budget deficit as later on they will have to make this reduction under pressure of time. Above else, high economic deficit negatively impacts the economy, including economic growth. If EU member states fail to implement quickly the low economic state budget defi cit policy, they will plunge into economic recession that will last for many years.

IMPACT OF GOVERNMENT DEBT ON FINANCIAL SECURITY OF UKRAINE

2017 ◽  
Author(s):  
Olena Pikaliuk ◽  
◽  
Dmitry Kovalenko ◽  
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Positive Impact ◽  
The State ◽  
Financial Security ◽  
State Budget ◽  
The Public ◽  
Debt Security ◽  
The Stability ◽  
The Impact

One of the main criteria for economic development is the size of the public debt and its dynamics. The article considers the impact of public debt on the financial security of Ukraine. The views of scientists on the essence of public debt and financial security of the state are substantiated. An analysis of the dynamics and structure of public debt of Ukraine for 2014-2019. It is proved that one of the main criteria for economic development is the size of public debt and its dynamics. State budget deficit, attracting and using loans to cover it have led to the formation and significant growth of public debt in Ukraine. The volume of public debt indicates an increase in the debt security of the state, which is a component of financial security. Therefore, the issue of the impact of public debt on the financial security of Ukraine is becoming increasingly relevant. The constant growth and large amounts of debt make it necessary to study it, which will have a positive impact on economic processes that will ensure the stability of the financial system and enhance its security.

scholarly journals Peran Negara dalam Perekonomian (Tinjauan Teoritis Kebijakan Fiskal dalam Ekonomi Islam)

2017 ◽  
Vol 13 (2) ◽  
pp. 288
Author(s):  
Syaakir Sofyan
Keyword(s):  
Fiscal Policy ◽  
The State ◽  
Public Welfare ◽  
Community Life ◽  
Economic Stability ◽  
State Budget ◽  
Policy Objective ◽  
Form Of Government ◽  
The Government ◽  
Distribution Of Income

Indonesia is a state based on law and adopts welfare. Thus, the state has an obligation and responsibility to realize public welfare as stated in the fourth paragraph of Undang-Undang Dasar (UUD) Negara Republik Indonesia 1945. In achieving these objectives, the government must play an important role in various aspects of community life, especially in the economy. One form of government intervention, namely in fiscal policy by adjusting the state revenues and expenditures in the state budget. In Islamic economics, fiscal policy objective is to create economic stability, high economic growth and equitable distribution of income, coupled with the other objectives contained in the rules of Islam

scholarly journals Transparency of Public and Local Finances: Foreign Experience

2020 ◽  
pp. 18-30
Author(s):  
INNA O. SHKOLNYK ◽  
NATALIIA G. VYHOVSKA ◽  
YULIIA S. HAVRYSH ◽  
ANDRII O. IVANCHENKO
Keyword(s):  
Fiscal Policy ◽  
The State ◽  
Budget Process ◽  
State Budget ◽  
Public Authorities ◽  
Public Finances ◽  
Information Portal ◽  
Foreign Experience ◽  
The Republic ◽  
State And Local

In modern conditions, the role of transparency of both public and local finances is growing significantly, which is a tool to increase the efficiency of financial resources, which confirms the analysis of Ukrainian and foreign studies. In Ukraine, the level of transparency is improving every year and as of 2019 is assessed by international organizations as the minimum allowable. At the same time, the level of transparency of local budgets differs significantly in different regions. To improve the situation and implement best practices in the field of transparency of public finances at both the state and local levels, it is important to analyze the foreign experience of those countries that are leaders in ratings of transparency of public authorities and transparency of the budget process. The paper analyzes the experience of the Office of the Public Accountant of Texas (USA), the Treasury of New Zealand, and the Treasury of the Republic of South Africa, which according to the open budget rating provided by the International Budget Partnership are among the 10 most transparent countries. Analysis of the content of the information portal of the Texas Public Accounts Controller Office showed a separate section “Transparency” with a detailed presentation of information in terms of key blocks of revenues and expenditures, state budget and finances, information on the formation and use of funds in all localities, information on budget deficit as well as information on transparency at the level of individual settlements, school districts, etc. A comparative analysis with the state of transparency of Ukrainian government agencies responsible for the development and implementation of fiscal policy and identifies weaknesses and strengths in terms of their transparency. It is established that the openness of the process of using public finances in Ukraine is gradually increasing, while the positions in the world transparency rating are also improving. However, the conceptual difference between building sites in the countries analyzed is that they report to taxpayers in a form that is accessible to them, rather than simply covering available information without comment or explanation. Keywords: open budget, participation, public finances, rating, fiscal policy.

STUDY OF THE DYNAMICS AND STRUCTURE OF THE STATE DEBT OF UKRAINE, METHODS OF ITS OPTIMIZATION

2018 ◽  
Author(s):  
Stepan Paranchuk ◽  
◽  
Roksolana Skip ◽  
Keyword(s):  
Public Debt ◽  
Financial Stability ◽  
The State ◽  
State Budget ◽  
Government Bonds ◽  
Advantages And Disadvantages ◽  
Safe Level ◽  
Domestic Debt ◽  
The Government ◽  
External Borrowing

One of the leading problems of Ukraine's economy at the present stage of its development is the issue of public debt, the constant increase in its size, irrational structure, which creates the preconditions for the dollarization of the national economy. Public debt is an important element of a market economy. As of today, there is no state that would not use borrowed funds. Borrowing by the state is due to the lack of own financial resources needed to finance the state budget and state functions. If used effectively, borrowed funds can be a positive factor in economic growth, but otherwise the increase in debt leads to economic dependence, deteriorating financial stability, as well as the financial crisis. The article reveals the issue of public debt of Ukraine, analyzes the dynamics of its value from 2009 to 2021 and identifies the reasons for the growth and / or reduction of this indicator. A study of the structure of debt obligations on the basis of the creditor, analyzed the advantages and disadvantages of internal and external borrowing. The article also provides a detailed description of the structure of internal and external creditors, the main tools used by the Government of Ukraine to attract domestic loans. Particular attention is paid to the analysis of domestic debt in terms of the structure of domestic government bonds. The ratio of public debt to gross domestic product and its comparison with the marginal and safe level are considered. A forecast was made for the amount of public debt for the future.

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