№ 2/2017

Fìnansi Ukr. 2017 (2): 64–80https://doi.org/10.33763/finukr2017.02.064

FINANCES OF THE INSTITUTIONAL SECTORS

IVANYTSKA Olga ¹, KOSHCHUK Tetiana ²

¹National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”
OrcID ID : https://orcid.org/0000-0001-5505-8849
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1013-4603

Fiscal risks management related to activities of state enterprises in Ukraine

The article argues the necessity to identify and assess the fiscal risks associated with activities of state enterprises of Ukraine and develops measures to limit the negative impact of these enterprises’ functioning on the balance of public finance. The approaches to managing fiscal risks, the source of which is the activities of the Ukrainian public sector entities, were discussed. In particular: the internal administrative decisions should be aimed at taking into account international requirements and recommendations; the necessity to adopt the strategic approach to identifying fiscal risks, which includes consideration of not only actual, but potential risks as well is argued; the methodology for estimating the largest fiscal risks associated with the operations of public enterprises should be developed, as well as measures to minimize risks depending on their nature. According to the strategic approach, fiscal risks are divided into actual and potential. The actual risks associated with significant threats to the balance of public finance due to significant losses of public enterprises and/or their accumulated debts etc. Potential fiscal risks arise due to the size of enterprises (large taxpayers) and/or negative dynamics of changes in their financial indicators. It is proposed to divide the state-owned enterprises with the largest fiscal risks into four groups: the group with the highest level of actual risk; the group of high actual risk; the group with a high potential risk; the group, which generates a moderate potential risk. Measures that can be applied regarding results of the analysis of SOEs’ fiscal risks are determined. They include: the rehabilitation, the evaluation of the feasibility of providing the state support to an enterprise and its impact on fiscal risks, restructuring, privatization, liquidation.

Keywords:financial management of public enterprises, the financial indicators of SOEs, payments of state enterprises to all levels budgets and state social funds, subsidies, loans provided under state guarantees, actual and potential fiscal risks associated with the activities of public enterprises.

JEL: E62, L32, H39

IVANYTSKA O. . Fiscal risks management related to activities of state enterprises in Ukraine / O. . IVANYTSKA, T. . Koshchuk // Фінанси України. - 2017. - № 2. - C. 64-80.

Article original in Ukrainian (pp. 64 - 80)

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