scholarly journals INFLUENCE OF BUDGET POLICY ON ECONOMIC GROWTH OF THE COUNTRY

2021 ◽  
Vol 1 (36) ◽  
pp. 243-249
Author(s):  
V. Makohon
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Social Protection ◽  
Debt Management ◽  
Economic Environment ◽  
Regulation System ◽  
The European Union ◽  
Safe Level ◽  
Budget Policy ◽  
The Impact

The article describes the essence of budget policy. Determined its role in ensuring macroeconomic stability and accelerating economic growth. The quantitative and qualitative impact of the budget regulation system on the economic environment has been characterized. It is substantiated that purposeful budget regulation allows accelerating or slowing social and economic processes, ensuring achievement of certain strategic goals and objectives. An estimation of the impact of budget policy on economic growth, in particular, on the justification of the interrelation of the share in the GDP of income, including direct and indirect taxes; expenses, including social protection and social security, economic activity; direct state and guaranteed debt with real GDP in Ukraine. For 2009—2019, the share of gross income and expenditure, deficit and debt in the countries of the European Union in the GDP was determined; income, expenses, deficit of the consolidated budget, direct state and guaranteed debt in Ukraine. The substantiation of the provision on the development of institutional foundations for fiscal policy-making based on the necessity of adapting the set of mechanisms of functioning of the budget regulation system to the conditions of development of the financial and economic environment and the cyclical nature of economic processes; the position regarding the formation of budget policy based on a forecast assessment of budgetary parameters, based on the projected macroeconomic indicators of socio-economic development of the country, tools and levers of tax policy. The priority directions of budget policy in the conditions of economic transformations are determined, in particular, to strengthen the investment and innovation budget component, to improve the structure of tax revenues, to maintain a safe level of public debt and budget deficit, to improve the quality of public debt management and to determine strategic guidelines for the structure of the debt portfolio.

scholarly journals The Impact of Public Debt in Economic Growth

2020 ◽  
Vol 9 (4) ◽  
pp. 177
Author(s):  
Ariana Xhemajli Selimaj ◽  
Bedri Statovci ◽  
Alma Shehu Lokaj ◽  
Ermira Beqiri
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Public Debt ◽  
Financial Stability ◽  
Positive Impact ◽  
Debt Management ◽  
Public Expenditures ◽  
Economic Growth Rate ◽  
The Impact

Different countries around the world, in addition to collecting public revenues as sources to cover public expenditures, also need other sources of funding, because frequently, most countries cannot generate sufficient budgetary revenue to afford all the budget expenditures. This is one of the reasons why public debt is created. There is always debate among economists as to what the optimal percentage of public debt should be so as not to impede the economic development of a country. To avoid impediments to economic development, then public debt management needs to be done properly so that it is earmarked for adequate projects that will contribute to economic growth and development. In this paper, we will analyse the impact of public debt on economic growth. Kosovo serves as our case study for the period 2009-2016, where remittances, exports, increase of average payments and subsidies were considered as other influencing factors. The prudent use of public debt, such as in various investments, job creation, and productivity growth, can all contribute to economic growth and financial stability. Otherwise, misuse of public debt will inadvertently affect the country’s destabilization, create an inflationary situation, and will only continue to increase liabilities to lenders – essentially, it will have no positive impact on the country. Reckless use of public debt will have a direct effect on lowering the economic growth rate.

scholarly journals Public Debt and Economic Growth in the European Union. Empirical Investigation

2021 ◽  
Vol 18 ◽  
pp. 199-208
Author(s):  
Piotr Misztal
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Economic Development ◽  
Public Debt ◽  
Budget Deficit ◽  
Negative Impact ◽  
Foreign Debt ◽  
Budget Deficits ◽  
The European Union ◽  
The Impact

The relatively high sizes of public debts in many of the world's member states have led to frequentdebates concerning the influence of public debt on economic growth. Analyzing economic literature it can beseen, that theoretical and empirical considerations on this topic are divided into three main parties. The firstpart of analyzes is the work of the Keynesians, which emphasizes that the budget deficit as well as the publicdebt positively affects the economic development of the country, mainly through the impact of the budgetexpenditure multiplier. The opposite view on budget deficits and public debt is represented by the neoclassicalschool, who argue that the budget deficit and public debt can have negative impact on economic growth.Conversely, proponents of the Ricardian equivalence concept believe that budget deficits and public debt areneutral for economic growth. These three mentioned above approaches to the budget deficit and public debtproblem have led to many debates at home and abroad about the importance of budget deficit and public debt inthe process of economic growth and economic development of the country. The main objective of the study isto determine the impact of the foreign debt and home debt on economic activity of the country, based on theexample of the 27 member countries of the European Union (without United Kingdom) in the period 2006-2017. The statistics came from the European Statistical Office (Eurostat) and International Monetary Funddatabase (World Economic Outlook).

scholarly journals Budgetary policy of the emerging countries in conditions of institutional transformations

2019 ◽  
Vol 17 (4) ◽  
pp. 252-261 ◽  
Author(s):  
Igor Chugunov ◽  
Valentyna Makohon ◽  
Yuliya Markuts
Keyword(s):  
Public Debt ◽  
Budget Deficit ◽  
Management Strategies ◽  
Emerging Countries ◽  
Debt Management ◽  
Budget Deficits ◽  
Budgetary Policy ◽  
Policy Objectives ◽  
Budget Policy ◽  
The Impact

In the conditions of institutional transformations, the issue of raising the budgetary policy prudence level, strengthening its impact on socio-economic processes becomes relevant, especially in emerging countries. This paper delivers the essence and role of budgetary policy in ensuring the macroeconomic stability and social welfare in the emerging countries. The approaches to budget policy vectors in terms of budget revenues and expenditures, budget deficits, and public debt are presented. The article provides a detailed analysis of public debt service ratio, the proportion of the budget deficit, and public debt to GDP in national currencies of emerging countries to the US dollar during 2000–2018. The authors outlined the budgetary policy objectives, summarized and systematized the approaches to its implementation in the emerging countries in the conditions of institutional transformations. The article identifies the features of medium-term public debt management strategies in the emerging countries, in particular in terms of marginal indicators of the budget deficit and public debt, improvement of the debt management system, maintaining the debt portfolio optimal structure. The impact of budgetary policy on social and economic processes is proved.

Economic behavior of households and their welfare: models and forms of interaction

2020 ◽  
pp. 3-8
Author(s):  
Maryana Bil ◽  
Olha Mulska
Keyword(s):  
Economic Growth ◽  
Social Protection ◽  
Well Being ◽  
Central Place ◽  
Economic Behavior ◽  
Human Potential ◽  
Modern Theory ◽  
Economic Behaviour ◽  
Theoretical Approaches ◽  
The Impact

The article defines the content of welfare as a measure of socially oriented efficiency of economic growth, which reflects the appropriate level of providing the population with material and spiritual goods with the formation of favourable conditions for human development and capitalization of human potential in a competitive mobile space. The modern theory of welfare testifies to the deepening of scientific discussions on the transformation of economic welfare into mobile and inclusive, as well as the opposition of competitive and social protection welfare policy. Another milestone in the evolution of welfare theory is the individualization of its provision. Conditions of competition and mobility increase the importance of households in providing their well-being with further reflection on the processes of economic growth of the community, region, and state. This gives grounds to actualize the issues of household welfare research and strengthening economic growth based on behavioural economics. The needs, interests, motives, and incentives determine the economic behaviour of households. At higher levels, it defines an economic culture that is closely linked to the national mentality. In this regard, the main models of economic and social behaviour of households – socialization, adaptation, integration, values, regulation, and the definition of financial development strategies are outlined. Theoretical approaches to the explanation of economic behaviour are generalized, namely religious-ethical, psychological, substantive theories, theories of motivations and acquired needs, process theories, theories of justice, and others. Based on the ideas of foreign scientists, the main determinants of the economic policy of households are proposed. Political, stabilizing, and economic determinants are distinguished in the group of general determinants. In the group of determinants directly related to households, the financial, demographic, cultural, social, empirical, and psychological are suggested. The author’s emphasis is placed on the importance of the impact of financial determinants of the households’ economic behaviour, the central place among which is occupied by savings.

How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

2020 ◽  
Vol 14 (3) ◽  
pp. 253-284
Author(s):  
Ranjan Kumar Mohanty ◽  
Sidheswar Panda
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Public Debt ◽  
Positive Impact ◽  
Decomposition Analysis ◽  
Structural Var ◽  
Adverse Impact ◽  
Mixed Effect ◽  
Domestic Debt ◽  
The Impact

The study investigates the macroeconomic effects of public debt in India during 1980–2017 using a structural vector autoregression framework. The objective is to examine the impact of public debt on the interest rate, investment, inflation and economic growth in India. The results of the impulse response functions show that public debt has an adverse impact on economic growth but a positive impact on the long-term interest rate in the short run and a mixed effect (both negative and positive) on investment and inflation. We also find that domestic debt has a more adverse impact on the economy than external debt. The estimated variance decomposition analysis finds that much of the variation in selected macro variables are explained by public debt and growth in India. This study suggests that public debt especially domestic debt should be controlled and channelled productively to have a favourable impact on the economy. JEL Classification: H63, O40, C40

scholarly journals The Importance of Maritime Transport for Economic Growth in the European Union: A Panel Data Analysis

2021 ◽  
Vol 13 (14) ◽  
pp. 7961
Author(s):  
Alexandra Fratila (Adam) ◽  
Ioana Andrada Gavril (Moldovan) ◽  
Sorin Cristian Nita ◽  
Andrei Hrebenciuc
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Maritime Transport ◽  
The European Union ◽  
Panel Data Regression ◽  
Green Investment ◽  
Port Infrastructure ◽  
The Impact

Maritime transport is one of the main activities of the blue economy, which plays an important role in the EU. In this paper, we aim to assess the impact of maritime transport, related investment, and air pollution on economic growth within 20 countries of the European Union, using eight panel data regression models from 2007 to 2018. Our results confirm that maritime transport, air pollutants (NOx and SO2) from maritime transport, and investment in maritime port infrastructure are indeed positively correlated with economic growth. In other words, an increase of 10% in these factors has generated an associated increase in economic growth rate of around 1.6%, 0.4%, 0.8%, and 0.7% respectively. Alongside the intensity of economic maritime activities, pollution is positively correlated with economic growth, and thus it is recommended that policymakers and other involved stakeholders act to diminish environmental impacts in this sector using green investment in port infrastructure and ecological ships, in accordance with the current European trends and concerns.

Does Public Debt Service Expenditure Crowd-Out Economic Growth? Empirical Evidence from an African Developing Country

2019 ◽  
Vol 64 (3) ◽  
pp. 23-38
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Time Series Data ◽  
Policy Formulation ◽  
Debt Service ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

Abstract This paper contributes to the ongoing debate on the impact of public debt service on economic growth; and it provides an evidence-based approach to public policy formulation in Zimbabwe. The empirical analysis was performed by applying the autoregressive distributed lag (ARDL) technique to annual time-series data from 1970 to 2017. The study findings reveal that the impact of public debt service on economic growth in Zimbabwe is negative in the short run but positive in the long run. The results are suggestive of the existence of a crowding-out effect of public debt service in Zimbabwe in the short run and a crowding-in effect in the long run. In view of these findings, the government should consider fiscal and financial policies that promote a constant supply of long-term finance, long-term fixed investments, and extension of a government securities maturity structure so as to ensure sustainable short- and long-term public debt service expenditures. The study further recommends the strengthening of non-distortionary revenue mobilisation reforms to reduce market distortions and boost domestic investment.

MAIN PROBLEMS OF PUBLIC DEBT MANAGEMENT OF THE RUSSIAN FEDERATION

2021 ◽  
Vol 2 (5) ◽  
pp. 27-31
Author(s):  
I. V. SUGAROVA ◽  
◽  
N. V. TADTAEVA ◽  
Keyword(s):  
Economic Growth ◽  
Russian Federation ◽  
Public Debt ◽  
World Economy ◽  
Debt Management ◽  
Financial Resources ◽  
Modern World ◽  
The Russian Federation ◽  
Public Debt Management

In the modern world economy, most countries lack the financial resources to fully perform their duties and functions to their citizens. The consequence of the increase in borrowing by countries is the growth of public debt. Its management is becoming one of the most acute problems in the current conditions. The article presents the main aspects of this problem, and suggests measures to stimulate the country's economic growth.

scholarly journals The Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000- 2015)

2017 ◽  
Vol 6 (2) ◽  
pp. 114 ◽  
Author(s):  
Tawfiq Ahmad Mousa ◽  
Abudallah. M. LShawareh
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Regression Model ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Negative Impact ◽  
External Debt ◽  
Using Data ◽  
The Impact

In the last two decades, Jordan’s economy has been relied on public debt in order to enhance the economic growth. As such, an understanding  of the dynamics between public debt and economic growth is very important in addressing the obstacles to economic growth. The study investigates the impact of public debt on economic growth using data from 2000 to 2015. The study employs least squares method and regression model to capture the impact of public debt on economic growth. The results of the analysis indicate that there is a negative impact of total public debt, especially the external debt on economic growth. 

scholarly journals European social model vs directive Bolkestein

2006 ◽  
Vol 53 (1) ◽  
pp. 65-77
Author(s):  
Srdjan Redzepagic
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Social Inclusion ◽  
Social Protection ◽  
Full Employment ◽  
Social Model ◽  
The European Union ◽  
European Social Model ◽  
Social Agenda ◽  
High Level

In this article is elaborated the actually question which is developed and discussed it the European Union is the European Social Model (ESM). It is a vision of society that combines sustainable economic growth with ever-improving living and working conditions. This implies full employment good quality jobs, equal opportunities, social protection for all, social inclusion, and involving citizens in the decisions that affect them. As the Euro-zone is struggling to move away from a dramatic slump in its economy and while the Lisbon Strategy and its potential for economic growth, strongly needs reactivation, the debates over the Europe have raised again the issue of a sustainable social agenda for the European Union. Recently, Europe's political leaders defined the ESM, specifying that it "is based on good economic performance, a high level of social protection and education and social dialogue". An important topic of the discussion nowadays is the Directive of the European Parliament and of the Council on services in the internal market so called "Bolkestein directive". The importance of this article is to give us the answer to the following question: would we have French goods available in French supermarkets all over Poland and no Polish services allowed in France? The EU would be unthinkable without the full implementation of the four freedoms. This is a good directive, going in the good direction.

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