PUBLIC FINANCE MANAGEMENT
BOHDAN Ivan 1, YARA Tetiana 2, KONOVALENKO Dmytro 3
1National Bank of Ukraine
OrcID ID : https://orcid.org/0000-0002-1752-0198
2SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-8242-1479
3SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-6314-3525
General government sector of Ukraine in 2015
The article deals with the practical aspects of application of the modern tools for assessment of fiscal stance of the general government (GG) in accordance with the standards of government financial statistics of the IMF. Authors focus on establishment of the information profile of the Ukraine’s public finance in the patterns of main types of transactions carried out by general government: current transactions, transactions with non-financial assets, with financial assets and liabilities (deficit financing), balance of assets and liabilities, the fiscal policy impact on the economic growth. Based on information from the IMF’s database, reports of the State Treasury of Ukraine, statements of the Pension Fund of Ukraine and the data of National bank of Ukraine, authors calculated and interpreted fiscal indicators of the general government over 2002-2015 period. Authors revealed the key drivers of the prolonged excessive fiscal deficits, which put a pressure upon the volume of government debt. The implications of excessive rise of GG’s liabilities are proved to be an increase of the unproductive debt service spending, a limited scope for fiscal manoeuvre after a launch of fiscal consolidation programs, a contraction of the real domestic demand, the removal of the GG from the regulation of macro-economic imbalances by fiscal policy tools, the deterioration of the fiscal sustainability. Authors draw a conclusion on the urgent need for reshaping of Ukraine’s fiscal policy that must be targeted towards the support of real consumer and investment demand. A positive fiscal impulse will give an opportunity to reduce the gap between potential GDP and actual GDP, as well as will promote sustainable economic growth in the future.
Keywords:general government sector, financial programming, public finance, deficit.
JEL: E62, Е69.
BOHDAN I. . General government sector of Ukraine in 2015 / I. . BOHDAN, T. Yara, D. Konovalenko // Фінанси України. - 2016. - № 8. - C. 106-.
| Article original in Ukrainian (pp. 106 - 127) | Download | Downloads :320 |
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