Open AccessDebt instruments as a source of financing the state’s expenditures
Author(s) -
Зоряна Миколаївна Лободіна
Publication year - 2019
Publication title -
ekonomìka, fìnansi, pravo/ekonomìka. fìnansi. pravo
Language(s) - English
Resource type - Journals
eISSN - 2786-5517
pISSN - 2409-1944
DOI - 10.37634/efp.2019.11(3).2
Subject(s) - debt , context (archaeology) , external debt , internal debt , government (linguistics) , loan , payment , deficit spending , government debt , economics , debt levels and flows , debt to gdp ratio , business , order (exchange) , state (computer science) , finance , economic policy , public economics , paleontology , linguistics , philosophy , biology , algorithm , computer science
The social and economic transformations taking place in Ukraine are accompanied by the expansion of functions of the state authorities and local self-government. This predetermines the search for sources of formation of budgetary resources on the background of permanent growth of the volume and directions of their spending and practical application of debt instruments.The purpose of the study lies in evaluating of the practice of carrying out public borrowings and in developing proposals concerning its improvement in the context of minimizing threats to government debt security.The economic essence, assignment of debt instruments have been considered, the dynamics of realization and structure of internal and external borrowings has been analyzed. The problems of applying the loan method of budget resources formation in Ukraine have been revealed. A set of measures for improvement of the use of government borrowings as a tool of the budgetary mechanism in the context of minimizing threats to the state's debt security has been developed.The results of evaluating the practice of using debt instruments give reason to argue that the irrational approach to their use, the manifestations of which are the unbalanced structure of debt payments over time, high cost of attracting resources and focus on solution of the short-term goals of budget policy, led to increased debt financial burden, the level of threats to the debt security of Ukraine and is the reason for the reduction of potential growth rates of the national economy and increasing of its vulnerability to external shocks..In order to minimize fiscal risks the feasibility of applying measures for improvement of the use of debt instruments has been substantiated by: adherence to the limit of the state budget deficit defined by the Budget Code of Ukraine, of state and local budgets, providing of state and local guaratees, diversification of the structure of the debt portfolio of borrowings taking into account currencies, maturities and interest rates; limiting the provision of state guarantees and the implementation of state financial support to economic entities at the expense of government borrowing in the conditions of excess of the share of public debt and the state guaranteed debt in the GDP of Ukraine of the 60% limit; the use of borrowed budgetary resources to finance investment projects.