№ 6/2023

Fìnansi Ukr. 2023 (6): 75–95https://doi.org/10.33763/finukr2023.06.075

PUBLIC FINANCE MANAGEMENT

KUDRJASHOV Vasyl ¹

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

Management of state budget financing in the aspect of Ukraine’s cooperation with the IMF

Introduction. During the war, the tasks of implementing new approaches to managing operations involving the attraction and use of resources within the framework of state budget financing arose. At the same time, the risks of maintaining financial stability and debt sustainability intensified. The resolution of these issues became the subject of cooperation between the state administration bodies of Ukraine and the IMF.
Problem Statement. The gaps between the growing expenses of the state budget and their revenue coverage have increased. The result was an increase in the burden on the financing of the state budget, which required making significant changes to the sources of attracting funds and the mechanisms for their implementation.
Purpose. Conducting an analysis of changes in the management of the state budget financing of Ukraine during the war in the aspect of Ukraine's cooperation with the IMF.
Methods. An analysis of state budget financing during the war and overcoming its consequences was carried out. The main tasks, sources and mechanisms of state budget financing are revealed. The problems of resource attraction from the domestic financial market, as well as financing from external sources, are highlighted.
Results. At the initial stage of the war, budget expenditures were significantly increased and changes were made to their structure. At the same time, deficit indicators increased, and its coverage was provided by budget financing operations. Due to the high risks of increasing the non-debt resource (on the basis of privatization and active operations), there arose a need of increasing state borrowing. During the use of internal resources, monetary financing was allowed, which had a negative impact on the dynamics of macroeconomic indicators. External debt obligations are provided on preferential terms and have a long-term nature. The use of such financing made it possible to ensure macroeconomic and financial stability in Ukraine, but was accompanied by an increase in public debt indicators. It is noted that the allocation of domestic state borrowing needs to be reviewed, and external financial assistance is subject to changes in the direction of rationalization and replacement by internal financing.
Conclusions. Measures developed within the framework of cooperation between Ukraine and the IMF allow to ensure budgetary capacity and debt sustainability. In order to strengthen them, it is proposed to increase the volume of non-debt resources for financing the budget, to replace monetary financing with non-state sources of its provision, to adopt programs for the gradual restoration of fiscal rules, as well as access to international capital markets, to make changes to the attraction of financial assistance (gradual replacement of it by other sources), adjusting the strategic principles of public debt management, taking into account the effects of the war and the needs of post-war recovery.

Keywords:state finances, state budget deficit, state budget financing, state borrowing, monetary financing of the state budget, state debt, fiscal rules

JEL: H12, H61, H62, H63, H68, H81

Kudrjashov V. . Management of state budget financing in the aspect of Ukraine’s cooperation with the IMF / V. . Kudrjashov // Фінанси України. - 2023. - № 6. - C. 75-95.

Article original in Ukrainian (pp. 75 - 95)

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