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№ 10/2019

№ 10/2019

Fìnansi Ukr. 2019 (10): 38–57
https://doi.org/10.33763/finukr2019.10.038

PUBLIC FINANCE MANAGEMENT

BOHDAN Ivan 1

1National Bank of Ukraine
OrcID ID : https://orcid.org/0000-0002-1752-0198


Fiscal rules: problems of implementation in national practice


The article examines global trends and urgent problems of the implementation of fiscal rules in the national practice. The role of fiscal rules in carrying out the macrostabilization function and ensuring the fiscal stability is highlighted. The article shows the institutional mechanisms of control over fiscal rules in the EU countries. Key prerequisites for efficient implementation of fiscal rules are revealed. The author identifies the advantages and disadvantages of various types of fiscal rules. The key problems that impede the effective functioning of fiscal rules in Ukraine are: harmonization of the statistical reporting on the basis of international standards, accuracy of fiscal forecasts and the quality of budget planning, problems of the effectiveness of the audit system, etc. The hidden risks of applying the system of numerical fiscal rules in Ukraine are: for the rules of actual deficit – the problem of carefully fulfilling expenditure plans; for the rules of structural deficit – the reliability of the methodology for assessing potential GDP and GDP gaps; and for the debt rules – an additional assessment of the risks of debt growth due to explicit contingent liabilities associated with government derivatives. The author calculates the retrospective dynamics of the control indicators of the numerical fiscal rules of Ukraine and carries out the international comparisons of Ukraine with the EU countries over 2002-2018. The author argues that legally established numerical fiscal rules require further development of monitoring mechanisms, enforcement procedures, control and responsibility mechanisms for compliance with fiscal rules, as well as their flexibility in the event of emergencies. The article emphasizes that full implementation of fiscal rules in Ukraine will allow controlling the parameters of public finances in the framework of international fiscal sustainability standards and bring public finance management tools in Ukraine closer to best world practices.

Keywords:government finances, fiscal rules, general government deficit, public debt

JEL: E61, E62, H62, H63


BOHDAN I. . Fiscal rules: problems of implementation in national practice / I. . BOHDAN // Фінанси України. - 2019. - № 10. - C. 38-57.

Article original in Ukrainian (pp. 38 - 57) DownloadDownloads :208
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