Debt policy at the modern stage: pragmatics and problematics
The question of determination of structural reforms financing sources in Ukraine is quite actually. Increasing of tax burden for the reforms financing in the current situation is unreal and useless. Increasing of tax revenues by improving of administration and broadening the tax base can be reached in the medium term prospective. Using funds that are raised through government loans, as investments in infrastructure and for the financing of structural reforms are justified in terms of clearly defined aims. The main problem in attracting loans, especially in the current situation - is an effective use of funds.
Steering of raised funds, mostly, is advisable for the financing projects that will enable the economy’s and jobs’ growth. These are infrastructure projects, projects concerning energy saving technologies, investment and innovation programs and more. It is also advisable to provide state guarantees during the obtaining of loans by enterprises that produce high-tech, competitive production, direct the funds for the redemption by the state the shares of such enterprises. Maintaining of certain level of infrastructure investment funding by government borrowing is fully justified because it promotes the stability of public finances in the long term prospective. It is also necessary to improve capital budgeting mechanism with the help of optimizing the planning, distribution and control of capital expenditures. Crucial meaning for the successful activity of the public and private sector partnership has appropriate developing and compliance of program and legal principles.
So, the state debt stays the most significant factor for the risks of fiscal stability and macro economical stability in the different countries of the world. Most of the countries continue the realization of fiscal consolidation plans, directed on the reducing of the budget balance and debt, optimization of state expenditures. Now in Ukraine it is necessary to provide fiscal consolidation in the middle term prospective, directed on the increasing of the public finance stability. The prior aim in this context is to reduce the budget deficit and limiting of public debt value.
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Keywords: state debt, state loan, budget policy, debt policy, budget deficit, state securities. |
THEORY
Bench Lilia
PhD, Associate Professor, SHEI «Kyiv National Economic University named after Vadym Hetman»
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