№ 6/2020

Fìnansi Ukr. 2020 (6): 56–74https://doi.org/10.33763/finukr2020.06.056

PUBLIC FINANCE MANAGEMENT

KUDRJASHOV Vasyl ¹

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

Application of fiscal rules in budget planning

The article touches upon the issue of application of fiscal rules in the medium-term budget planning in Ukraine. Based on the analysis of the practical experience of using fiscal rules in the EU, conclusions are made on the expediency of taking them into account in budget planning in this country. Particular attention is paid to the regulation of budget operations, changes in the composition of participants in the budget process, the definition of their powers and responsibilities, as well as functions in the medium-term budget planning. It is noted that in Ukraine, fiscal rules contain mainly numerical limits, which are set on the basis of the overall balance and do not take into account cyclical effects, as well as allow discretionary decisions of the government, which complicates budget planning. Normative documents in Ukraine do not contain a clear regulation of the composition, powers and obligations of institutions involved in the development and implementation of budget planning, as well as monitoring, analysis, control and reporting on compliance with fiscal rules. It is noted that the application of medium-term budget planning involves the adoption of fiscal frameworks and medium-term goals. At the same time, attention is drawn to the need to significantly improve budget forecasts, take into account fiscal risks, manage budget expenditures, government borrowing and mobilize the resource base to finance the state budget. Proposed measures to improve medium-term budget planning in Ukraine. The focus of attention is on the issues of institutional support for the development and implementation of the medium-term budget planning. It is recommended to involve independent fiscal institutions, the activities of which require additional regulation, in the analysis of fiscal risks and assessments of their impact on fiscal policy, adoption and implementation of strategic and annual budget objectives.

Keywords:fiscal rules, budget planning, medium-term framework, medium-term goals, budget deficit, government borrowing, fiscal risks

JEL: E62, H62, H68

Kudrjashov V. . Application of fiscal rules in budget planning / V. . Kudrjashov // Фінанси України. - 2020. - № 6. - C. 56-74.

Article original in Ukrainian (pp. 56 - 74)

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