№ 11/2019

Fìnansi Ukr. 2019 (11): 97–109https://doi.org/10.33763/finukr2019.11.097

PUBLIC FINANCE MANAGEMENT

LUNINA Inna ¹

¹Institute for Economics and Forecasting of NAS of Ukraine
OrcID ID : https://orcid.org/0000-0003-3812-4802

Conceptual basics of public finance sustainability

Theoretical approaches and international experience of identifying components of sustainable development and empirical assessment of the fiscal sustainability are investigated. The author argues that fiscal policy challenges should be considered and dealt within the holistic approach to sustainable development, which allows for the consequences of budget decisions on future generations. This requires the consistence of public finances with the conditions for economic growth, tax burden stability and social justice. The international policies of managing public finances in terms of equitable inter-generational distribution of resources are analyzed. Special attention is drawn to the fact that the works of national researchers are mainly focused on parameters of public debt and budget deficits, which define the government’s solvency and ability to sustain its debt liabilities. It is proved that the improvement of the Ukrainian Consolidated Budget in 2015-2018 was ensured by increasing the tax burden on the economy and reducing expenditures on economic activity, health care, education, fundamental and applied research which are productive and crucial for the development of human capital as well as national economy as a whole. It is argued that the sustainability of public finances in the long run is determined not only by the fulfillment of government debt but also by an increase in productive budget expenditures in order to ensure a dynamic balance of public finances in space and time, including intergenerational relations in the process of socio-economic development of Ukraine.

Keywords:long-term sustainability of public finances, government’s solvency, socio-economic development, future generations

JEL: E62, H60, H61

Lunina I. . Conceptual basics of public finance sustainability / I. . Lunina // Фінанси України. - 2019. - № 11. - C. 97-109.

Article original in Ukrainian (pp. 97 - 109)

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