Sources of Financing the Budget Deficit: Trends in the Application and Challenges to the Stability of Ukrainian Public Finance

Journal Title: Бізнес Інформ - Year 2015, Vol 2, Issue 0

Abstract

The article is aimed to study the composition and structure of sources for financing the budget deficit, reveal trends in their application and identify possible risks to the stability of public finance in the short-and long-term perspectives. Based on the analysis of reasons and factors of occurrence of the budget deficit and directions of use the funds for its covering, the challenges for the financial security of the State have been identified. As result of the study, it was proven that none of the sources for financing of the budget deficit does not have absolute advantage over others and is not completely non-inflationary. The Government, in deciding on the choice of the mode of financing the budget deficit, must proceed from the position of economic feasibility of each source of financing, combining them and minimizing the possible negative consequences for both the budget and the economy as a whole in the short and long run. Summing up the modern conceptual approaches to balancing the budget, the expedience of choosing for Ukraine strategies to stabilize public finances on the basis of the functioning of finance, taking into account the influence of the internal (institutional and macroeconomic) and the external (global) factors, has been substantiated. Prospect of further research in this area is to give reasons for necessity of focusing on activities to support long-term economic growth when projecting future financial plans of the State, taking into consideration the possible reduction of the budget deficit that can require a finer balance between fiscal policy and reforms of expenditures.

Authors and Affiliations

Tetiana Koliada

Keywords

Related Articles

On Modelling Economic Behaviour of Households as an Open Socio-economic System

The article analyses the modern state of studies of economic behaviour of households in the world and Ukraine. It justifies the use of means and methods of mathematic modelling for the study of economic behaviour of thes...

Compression of indicators in diagnostics of socio-economic development of a company: problems and ways of solution

The article shows the role of integral indicators and methods of their construction in assessment of the state of a company in dynamics of its development. It draws attention to the problem of comparability of values, ob...

The International Technology Transfer in the Economic Development of Ukraine

The article is aimed at developing the theoretical-methodological framework and practical recommendations on improvement of the mechanism for the participation of Ukraine in international technology transfer, which are t...

Organisational Aspects of Delegating Accounting and Controlling Authorities with the Use of Information and Communication Technologies

The article studies problems of application of information and communication technologies in accounting and control. It develops an organisational model of general accounting and control by an enterprise and outside firm...

Analysis and Assessment of Financial Indicators of Banks in the Context of Ensuring Functioning of the Banking System

The article studies methods of analysis and assessment of financial indicators of activity of banks, which characterise their solvency, keeping which at a relevant level for each bank ensures functioning of the banking s...

Download PDF file
  • EP ID EP111226
  • DOI -
  • Views 85
  • Downloads 0

How To Cite

Tetiana Koliada (2015). Sources of Financing the Budget Deficit: Trends in the Application and Challenges to the Stability of Ukrainian Public Finance. Бізнес Інформ, 2(0), 215-222. https://europub.co.uk/articles/-A-111226