№ 11/2020

Fìnansi Ukr. 2020 (11): 76–93https://doi.org/10.33763/finukr2020.11.076

PUBLIC FINANCE MANAGEMENT

KUDRJASHOV Vasyl ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-4801-3620

Developing the concept of formation and implementation of fiscal rules in Ukraine

Issues related to changes in the application of fiscal rules during the period of overcoming the consequences of the COVID-19 pandemic in the EU and its using in Ukraine are covered. It is noted that fiscal rules have been implemented in Ukraine, but their application is at an early stage. No separate normative document on the use of fiscal rules has been adopted. The current fiscal rules do not take into account cyclical effects and discretionary measures (both in times of recession and economic growth), which complicates budget planning. There is no proper system of institutions that ensures their implementation and use. Budget procedures that determine the procedure for applying fiscal rules need to be clarified. There is no clear regulation of the composition, powers and obligations of the institutions involved in monitoring, analysis, control and reporting on compliance with fiscal rules. It is proposed to develop and adopt a separate law of Ukraine. Emphasis was placed on the need to expand the parliament's function of monitoring the implementation and observance of fiscal rules, as well as to involve independent fiscal institutions in the development of budget plans and control over their implementation. It is recommended to introduce more detailed regulation of procedures for implementation of fiscal rules in medium-term budget planning. It is proposed to adopt a debt rule, which should regulate the conduct of public debt management operations during medium and long term. It is determined that in overcoming the consequences of the COVID-19 pandemic, fiscal policy should be divided into three main stages, during which certain intermediate goals should be achieved, which are accepted in terms of solving the main tasks set for public administration over the medium term. It is not recommended to introduce a sharp adjustment of fiscal policy in order to restore fiscal rules after overcoming the effects of the pandemic.

Keywords:fiscal rules, implementation of fiscal rules, functions of fiscal institutions, independent fiscal institutes, control of observance of fiscal rules, medium-term budget planning

JEL: E62, H60, H61, H63

Kudrjashov V. . Developing the concept of formation and implementation of fiscal rules in Ukraine / V. . Kudrjashov // Фінанси України. - 2020. - № 11. - C. 76-93.

Article original in Ukrainian (pp. 76 - 93)

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