№ 11/2016

Fìnansi Ukr. 2016 (11): 94–0

FINANCIAL AND ECONOMIC REGULATION

STAVYTSKYI Andrii ¹, BASALA Katerina

¹Taras Shevchenko National University of Kyiv

Economic and mathematical modeling of budget investment process in Ukraine and EU

The article investigates the dynamics of public investment in Ukraine during the period 2006—2015. Since 2011 its volume has decreased gradually, and since 2013 there has been a substantial decline. The authors develop and propose their own methodology for assessing the effectiveness of public investment by calculating the coefficient of efficiency for two periods: 2010—2012 and 2013—2015. For it one takes into account the dynamics of the country indicators and public investment in different periods compared with the national average for the years 2010—2015 and with those of other countries. The effectiveness of public investment in Ukraine remains very low, and the positive trend to its reduction and the corresponding increase in its efficiency are caused by adverse economic situation and the state budget deficit rather than intensified use of investment. The study shows that improving efficiency in Ukraine has been confined to the reduction of non-productive expenditure, but the impact of the expenditure made has not changed. Therefore, the present government of Ukraine should continue to improve its policy in public investment, especially in planning, budgeting and controlling its use. While calculating efficiency coefficient on the basis of inter-state benchmarking, one may observe a significant decrease in the efficiency of budget investment in 2013—2015. It should be noted that in Europe only two countries have a downward trend in efficiency growth: Ukraine and Greece. There is a large gap between Ukrainian efficiency coefficient and lowest coefficients in the EU, so Ukraine’s government should further improve the field of public investment to reach the European level. In particular, the efficiency coefficient in Ukraine is 7 times lower than in the UK, 6 times lower than in Ireland, 5 times lower than in Germany and Latvia, 3.5 times lower than in Estonia,
3 times lower than in Hungary.

Keywords:budget investment, efficiency, budget, methodology, capital expenditures, economic and mathematical modelling, Ukrainian economy.

JEL: H54, H72, E27, E62.

STAVYTSKYI A. . Economic and mathematical modeling of budget investment process in Ukraine and EU / A. . STAVYTSKYI, K. Basala // Фінанси України. - 2016. - № 11. - C. 94-0.

Article original in Ukrainian (pp. 94 - 108)

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