Place of debt obligations of Ukraine in state finances

Abstract

Recently it is observed the activation process of a public debt, both domestic and external ones, ensuring the growth of public debt in Ukraine. Liabilities of the countries are studied in the system of public finance and occupy a significant place among the studies as foreign and domestic scholars. The definition of public debt is provided in the Budget Code of Ukraine and every year along with the approval of the State Budget for the following year the Parliament approves limit amounts of public debt with the appropriate breakdown of amounts of internal and external debt, as well as limiting the amount of guarantees.

In this paper the economic nature of public debt, its types, the objectives of the reasons for its growth under conditions of active control systems, assess the credit relationship between Ukraine and the International Monetary Fund are considered. The analysis of public debt separately from its division into external, internal and guaranteed has been conducted.

In public finance an important role belongs to debt management in the country that provides two modes of operation: normal and crisis ones. The article defines the problems that need to be addressed in the crisis management of public debt. Crisis management with functioning of economics is on the verge of default. This problem appears when  debt growth is no longer manageable.

To assess the debt burden it is used a large number of indicators, the most common of which is the ratio of government debt to gross domestic product, income budget, the number of population and others. The article analyzes the ratio of government debt to Ukraine's gross domestic product by years. The most and the least its share at the end of the year are determuned.

The conclusions of the article propose measures to encourage the improvement of public borrowing, the main of which is to develop strategies to attract, use effectively and monitore the foreign aid, provide a systematic approach to international integration and cooperation, include the introduction of effective mechanisms for decision-making in foreign trade.