Budget potential and economic growth: the theoretical aspect of the impact
The article considers and analyzes approaches to understanding the budget potential. Determined three groups of views on the nature of the budget capacity. According to which budget potential is solely as an aggregate of proceeds from another as a combination of income and expenses. The third group indicates that fiscal capacity is not as much resources as possible or capacity for their formation. Established methodological principles of budget capacity. According to what budget potential is a leading financial characteristics of the reproductive process of the country. Which characterized as a quantitative and organizational support. It was determined that the size of the public sector can carry both positive and negative impact on economic development. Moreover, the optimal size of the public sector for each country is different and depends on the input of purely economic factors, may improve or worsen performance management and quality of services provided by the state. The characteristic size of the impact of the budget allocation for economic development. Established co-factors such effects. Determined the current limits of the budget allocation and the possibility of Ukraine’s GDP increase. Normative model of budgetary spending is an economic situation where the marginal utility derived from each additional unit of budget expenditures will be equal to the marginal economic costs of an additional unit generated revenue. Considered views on foreign and domestic scholars on the optimal size government redistribution of GDP. The analysis of the actual level of budget allocation Ukraine and the European Union. Comparison of the level of budget allocation Ukraine to Bulgaria, the Czech Republic and Poland, as one of the most homogeneous countries to Ukraine. And mentioned the possibility of moderate increase in the level of budget allocation in Ukraine, while maintaining an appropriate share of public investment, and quality public services and public management.
[Download PDF version]
Keywords: Income, expenditures, gross domestic product, budget potential, economic development. |
THEORY
Volkovskyi Ievgen
Senior lecturer Department of Financial market SHEI «Kyiv National Economic University named after Vadym Hetman»
|
