Open AccessTRENDS AND PERSPECTIVES OF THE STATE BUDGET EXPENDITURES FOR UKRAINE’S ENERGY SECTOR
Author(s) -
Tetiana Zhyber
Publication year - 2018
Publication title -
ekonomìka ukraïni
Language(s) - English
Resource type - Journals
eISSN - 2522-9478
pISSN - 2522-9303
DOI - 10.15407/economyukr.2018.11.060
Subject(s) - subsidy , public sector , modernization theory , business , federal budget , private sector , economic policy , government budget , economics , finance , public economics , economic growth , macroeconomics , fiscal year , public finance , economy , market economy
The energy sector of Ukraine has been built according to the needs of the former USSR. During the entire period of independence, post-Soviet ties and technologies required considerable public spending for the needs of FEC. The purpose of the article is to determine the amount of public spending for Ukraine’s energy sector. The task is to outline the prospects for the further burden on public spending. The dynamics of direct expenditures and credits from the state budget for the energy sector is shown and they are compared in general and by individual areas. The method of calculation consisted of author’s grouping and adding the actual budget expenditures or loans together by general and special funds of the budget according to the budget programs during 2002–2017. Expenditures for the FEC by functional classification were compared with author’s calculations of expenditures by budget programs. The discrepancies found are explained by: implementation of the approved budget programs during the entire analyzed period by various responsible executives, leveling out of the consequences of activities of the energy sector entities in economic sphere, reallocations of money between expenditures and lending, etc. During the period researched, the number of thematic budget programs decreased fourfold. The analysis shows the prospects for the further significant direct expenditures for the coal industry to maintain closed mines, rescue and disaster prevention services and subsidize enterprises to compensate for the cost of coal. The method of financial maintenance of repairs and modernization of energy networks through the budget loans means prospects for increasing the future debt burden of the budget due to the need to repay loans in foreign currency. In general, the energy sector also receives indirect subsidies from the state budget through subsidies to the population and direct funding. Reducing the number of budget programs by their consolidation narrows the scope for analyzing the state policy in the field of financial support to Ukraine’s energy sector.