№ 10/2017

Fìnansi Ukr. 2017 (10): 7–26https://doi.org/10.33763/finukr2017.10.007

PUBLIC FINANCE MANAGEMENT

KUDRJASHOV Vasyl ¹

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

Financing the state budget in the period of overcoming the impacts of recession

The purpose of the work is to determine the content and components of the state budget financing and analyze its implementation in Ukraine during the period of overcoming the consequences of the recession. The study clarifies the concept of financing the budget, discloses its components (from the costs and resources mobilization). It is noted that the difference between the volume of budget deficit and budget financing as a whole is reflected by operations of deficit-debt adjustment. The financing of the state budget of Ukraine in recent years is analyzed. It is concluded that the implementation of such a course led to the need for a sharp increase in state borrowing (both domestic and foreign), in the absence of plans to privatize state property, as well as conducting active operations mainly for the purchase of non-debt securities, and not for their sale. The consequence was an increase in domestic and external public debt. The structure of financing state borrowings has undergone significant changes. The external debt has grown more rapidly. The extension of state guarantees (internal and external) has led to the accumulation of a state-guaranteed debt. The structure of its financing was characterized by a significant increase in the volume of debt to international financial institutions and foreign banks. In order to stabilize public finances, mechanisms for streamlining the volumes and the structure of financing the state budget of Ukraine are proposed.

Keywords:budget financing, budget deficit, deficit-correction, fiscal risks, public debt, active operations, state guarantees

JEL: Н61, Н62, Н63

Kudrjashov V. . Financing the state budget in the period of overcoming the impacts of recession / V. . Kudrjashov // Фінанси України. - 2017. - № 10. - C. 7-26.

Article original in Ukrainian (pp. 7 - 26)

Download

Downloads :779

1. Alesina, A. et al. (2014, June 6). Europe’s Fiscal Crisis Revealed: An In-Depth Analysis of Spending, Austerity, and Growth. Retrieved from www.heritage.org/europe/report/europes-fiscal-crisis-revealed-depth-analysis-spending-austerity-and-growth#chapter1.
2. Balcerowicz, L., Rzonca, A., Kalina, L. & Łaszek, A. (2013). Economic Growth in the European Union. Retrieved from www.lisboncouncil.net/growth/documents/LISBON_ COUNCIL_Economic_Growth_in_the_EU%20(1).pdf.
3. Blankart, Sh. (2000). Public finances in a democracy: an introduction to financial science. Ky`yiv: Ly`bid` [in Ukrainian].
4. Bohdan, T. P. (2017). Medium-term budget planning in ukraine: systemic essence, functions, structural elements. Finance of Ukraine, 6, 7–25 [in Ukrainian].
5. Iefymenko, T. I. (2013). Actual problems of modern strategies of tax system reforming. Finance of Ukraine, 3, 7–26 [in Ukrainian].
6. Ky`ry`lenko, O. P. (2013). Strategic targets for improving of inter-budgetary relations in Ukraine. Finance of Ukraine, 8, 19–28 [in Ukrainian].
7. Lunina, I. O. (2013). Taxation of wealth: international experience and lessons for Ukraine. Finance of Ukraine, 2, 21–36 [in Ukrainian].
8. Oparin, V. M. (2015). Dominants and priorities of financial equalization in Ukraine. Finance of Ukraine, 6, 29–43 [in Ukrainian].
9. Oparin, V. M., Fedosov, V. M. & Yukhy`menko, P. I. (2015). Ukrainian modern scientific school of public finance. Finance of Ukraine, 11, 56–87 [in Ukrainian].
10. Verkhovna Rada of Ukraine. (2010). Budget Code of Ukraine (Act No. 2456-VI, July 8). Retrieved from zakon3.rada.gov.ua/laws/show/ 2456-17 [in Ukrainian].
11. Eurostat. (2016). Stock-flow adjustment (SFA) for the Member States, the euro area and the EU28 for the period 2012-2015, as reported in the October 2016 EDP notification. Retrieved from ec.europa.eu/eurostat/documents/4187653/7707555/STOCK-FLOW-2016-OCT.pdf.
12. European Central Bank. (n. d.). From Government Deficit to Debt: Bridging the GAP (pp. 87–93). Retrieved from www.ecb.europa.eu/pub/pdf/other/pp8793_mb200704 en.pdf?3fe16d8969bb1cfdefe3cb18fec32a47.
13. Information of the Ministry of Finance of Ukraine on the implementation of the State Budget of Ukraine 2015. (n. d.). Government courier. Retrieved from ukurier.gov.ua/uk/articles/informaciya-ministerstva-finansiv- ukrayini-08/ [in Ukrainian].
14. Accounting Chamber of Ukraine. (n. d.). Conclusions on the execution of the state budget of Ukraine 2015. Retrieved from www.ac-rada.gov.ua/control/main/uk/publish/article/ 602600?cat_id=34761 [in Ukrainian].
15. International Monetary Fund. (2016, February). UKRAINE. Technical Assistance Report – Reforming Management and Oversight of State Assets. IMF Country Report, 16/31, 6–8.
doi.org/10.5089/9781513501444.002
16. President of Ukraine. (2015). Sustainable development strategy “Ukraine 2020” (Decree No. 5/2015, January 12). Retrieved from zakon5.rada.gov.ua/laws/show/5/2015/print1443615883223739 [in Ukrainian].