DEPENDENCE OF UKRAINE’S BUDGETARY POLICY ON POLITICAL CYCLES

Abstract

Urgency of the research. It is important to determine the impact of political cycles on budgetary policy in order to improve budget funding of Ukraine, accelerate reforms and stimulate economic development. Target setting. The assessment of Ukraine’s budgetary policy dependence on political cycles is important in terms of regulating the budget performance security and financial stability of the state. Actual scientific researches and issues analysis. Political cycles are the subject of research for a number of scientists among them I. Bardin, V. S. Boyko, D. Buchanan, А. Vdovychenko, R. Wagner, N. Dehtyarova, N. M. Lypko, Y. Mironovich, V. Nordhaus, V. Shevchuk. Definition of uninvestigated parts of general matters. Identification of interconnections and interinfluences of political cycles and Ukraine’s budget policy as well as effects of such relations remain insufficient. The research objective. The aim of the article is to determine the dependence of Ukraine’s budgetary policy on political cycles. The statement of basic materials. The article reveals the presence of the influence of political cycles in Ukraine on budget policy. The deterioration of the Ukraine's budget deficit and state debt indicators is analyzed. Based on econometric models the author proves an artificial increase in expenditures. It was found that the growth of social protection costs is a major factor of political cycles influence on the economy. The author also relates Inflationary processes before and after the elections to adjustments in monetary policy, which in turn requires coordination of fiscal and monetary policies. The author characterizes the challenges for the budget policy of Ukraine. Conclusions. The main challenge to the fiscal policy now is to settle indicators Ukraine's budget security com-bined with the financial support of the reforms in the economic and political life, despite the military conflict, shadow economy, the political crisis.