BUDGET POLICY
KUDRJASHOV Vasyl 1
1SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-4801-3620
Risks of state budget execution and mechanisms of their limitation
Based on the analysis of the dynamics of the State budget of Ukraine indicators for the first half of 2016, it is found that the execution risks remain high: the mobilization of government revenues has become more complicated, an increase in expenditure has failed to curb and credit reduction has been insufficient to suspend an upward trend in the budget deficit. A certain budget deficit limit achieved in 2015 was due to extra-budgetary factors but not to a budget risk decrease. In the first half of 2016 an increase in the deficit resumed. Amounts of budget funding of the Pension Fund of Ukraine deficit and support for public financial and non-financial corporations remain significant. The expansion of fiscal and debt adjustment caused detention of government borrowing, whose value is substantially higher than the budget deficit, resulting in a further increase in public and publicly guaranteed debt. To limit the risk of the state budget execution, it is proposed to strengthen policies aimed at rationalizing expenditures, to slightly change the process of revenue mobilization, to limit quasi-fiscal operations and to take measures to prevent the distribution and use of resources in the interests of certain financial groups. These tasks are solved by easing the tax burden and the impact of government on public corporations management, by continuing a pension system reform and increasing real personal incomes through the following mechanisms: the introduction of strict control of public spending, the improvement of tax and non-tax revenue mobilization and the development of budget programs and the public procurement system for more efficient use of public funds.
Keywords:state budget, state budget expenditures, revenues of the state budget deficit, funding for the state budget, fiscal risks.
JEL: E62, F36, H61.
Kudrjashov V. . Risks of state budget execution and mechanisms of their limitation / V. . Kudrjashov // Фінанси України. - 2016. - № 12. - C. 59-76.
| Article original in Ukrainian (pp. 59 - 76) | Download | Downloads :713 |
1. Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding. (2014). Retrieved from www.bank.gov.ua/doccatalog/document?id=8637780/.
2. Cabinet of Ministers of Ukraine. (2016). Plan of priority actions of the government in 2016 (Order № 418-р, May 27). Retrieved from zakon4.rada.gov.ua/laws/show/418-2016-р [in Ukrainian].
3. Verkhovna Rada of Ukraine. (2014). Coalition Agreement 2014. Retrieved from afo.com.ua/doc/Coalition_Agreement_2014.pdf [in Ukrainian].
4. Ministry of Economic Development and Trade of Ukraine. (n. d.). Indicators of economic and social development of Ukraine. Retrieved from www.me.gov.ua/Documents/Detail?lang=uk-UA&id=085ab09c-ca24-4fee-ae13-3cb51349507c&title=OsnovniPokaznikiEkonomichnogoISotsialnogoRozvitkuUkraini [in Ukrainian].
5. State Statistics Service of Ukraine. (n. d.). Retrieved from www.ukrstat.gov.ua/ [in Ukrainian].
6. National Bank of Ukraine. (2016). Inflation Report of the National Bank of Ukraine. January 2016. Retrieved from www.bank.gov.ua/doccatalog/document?id=27033423 [in Ukrainian].
7. State Statistics Service of Ukraine. (n. d.). Macroeconomic indicators. Retrieved from www.ukrstat.gov.ua [in Ukrainian].
8. National Bank of Ukraine. (2016). Financial Stability Report. Retrieved from www.bank.gov.ua/doccatalog/document?id=32241744 [in Ukrainian].
9. Weber, A. (2012). Stock-Flow Adjustments and Fiscal Transparency: A Cross-Country Comparison. IMF Working Paper, 12/39. Retrieved from www.imf.org/external/pubs/ft/wp/2012/wp1239.pdf.
10. Ministry of Finance of Ukraine on the State Budget of Ukraine for 2015. (2016). Governmental courier. Retrieved from ukurier.gov.ua/uk/articles/informaciya-ministerstva-finansiv-ukrayini-08 [in Ukrainian].
