Analysis of Ukraine public finances stability

Abstract

Paper purpose is to identify the risks of public finance sustainability in the current macroeconomic imbalances in Ukraine and to identify fiscal imperatives to reduce their vulnerability caused by the budget deficit and the level of public debt. After all, public finances play an important role for securing of some economic growth, supporting of business activity, regulating of economics, solving of social problems, and creating of some right conditions for regions development. Methodology of research. Achieving this goal is based on the following research methods: dialectical approach, induction and deduction, analysis and synthesis, complex approach, logical approach, vertical and horizontal analysis, trend analysis, graphical method. Findings. In-depth analysis of the current state and tendencies of Ukraine public finances development is conducted. The main threats to the sustainability of Ukraine public finances have been identified. They are: reduction of the general level of nation economy development, critically high level of public debt, deterioration of state fiscal capacity, significant debt burden on the state budget, currency risks, speculative discount rate. Fiscal imperatives to reduce the vulnerability of public finances to factors negative impact have been identified. The theoretical and practical foundations for ensuring the sustainability of public finances have been developed. Practical value. It is proved that due to the cumulative influence of certain factors the budget imbalance increases, which leads to an expansion of state external debt. Exceeding the safe parameters of debt dependence along with currency risks growth, financial condition deterioration at the real and banking sectors in the context of financial resources chronic lack create some critically high threat to public finances, as well as the implementation of economic reforms in Ukraine. 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Naukovi zapysky Natsionalnoho universytetu “Ostrozka akademiia”. Ser. : Ekonomika – Scientific notes of Ostroh Academy National University. Economy series, 25, 146–151 [in Ukrainian]. Published: 2020-03-28