FINANCING THE STATE BUDGET DEFICIT: MANEUVERABILITY IN THE CONTEXT OF STATE DEBT MANAGEMENT

Abstract

Ukraine's economy is in a state of crisis. On the one hand, this reason is related to the military on its territory. However, a number of macroeconomic problems have been accumulating for years. In particular, the deficit of the state budget of Ukraine and the state debt, which were constantly increasing. Objective and subjective reasons led to an increase in the amount of government borrowing, which led to the fact that certain indicators of debt security reached critical limits. It is natural that hostilities, destruction of infrastructure, migration of the able-bodied population, production stoppages only deepened Ukraine's existing debt problems. At the same time, the lack of alternative ways to finance the military needs of the economy became the reason for the growth of Ukraine's state loans. This explains the relevance of the article. The purpose of the article is violated in the study of modern problems related to the emergence of the budget deficit, the studied sources that can be used to cover the deficit from the standpoint of ensuring the maneuverability of public debt management. The article substantiates the choice of sources of financing the budget deficit and describes the factors that provoke its growth. In Ukraine, the main causes of the budget deficit are related to the action of certain factors, which are divided into several groups: wartime factors, political factors, the most significant factors, factors related to reconstruction. The assessment of the main indicators of the implementation of the state budget of Ukraine showed that the indicator of the deficit of budget funds has a growing tendency. The largest increase in the budget deficit was recorded in 2022, which is explained by the increase in the expenditure part of the budget for the defense and social spheres. In Ukraine, borrowing is the main source of financing the deficit. Due to the impossibility of abandoning external and internal borrowing, the only effective solution is to achieve the maximum possible maneuverability of the public debt management policy. Among the main ways of financing the deficit of budget funds, it is necessary to include, first of all, new approaches in the management of the public debt, namely, the development of a program for restructuring the external debt, through its postponement and partial write-off. It is necessary to resolve the issue of providing additional grants to restore the economy and infrastructure at the diplomatic level.