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Foregone Capital Shortcoming as a Threat of Financing of Budget Deficit of Ukraine

Author

Listed:
  • Nataliya Trusova

    (Taurian State Agrotechnical University, Melitopol, Ukraine)

  • Volodymyr Ternovsky

    (Taurian State Agrotechnical University, Melitopol, Ukraine)

Abstract

The article is devoted to the substantiation of a methodical approach to setting limits on foregone capital, which is a major threat to the financing of the deficit of budget of the country. Measures to minimize threats of financing of budget deficit of Ukraine are considered. It is proven that in context of the current macroeconomic situation, large amounts of foregone capital increase the threat of ineffective provision of balance of payment, does not encourage the close relationship of legal and illegal financial flows, does not allow us to determine the real purpose of attracted resources and their target ability to finance the deficit of a budget. Evaluation methods of amounts of foregone capital are used that allow conducting macroeconomic analysis of guaranteed public debt coverage level and its limitations in relation to the gross domestic product of the country. It is determined that fiscal policy as a tool of redistribution of gross domestic product in the short term is a macroeconomic stabilizer of counteraction of inflation flywheel, in long term is a stabilizer of legislation changes in relation to tax burden.

Suggested Citation

  • Nataliya Trusova & Volodymyr Ternovsky, 2017. "Foregone Capital Shortcoming as a Threat of Financing of Budget Deficit of Ukraine," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 145-152, March.
    • Handle: RePEc:iaf:journl:y:2017:i:1:p:145-152
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    References listed on IDEAS

    as
    1. Michael P. Dooley, 1988. "Capital Flight: A Response to Differences in Financial Risks," IMF Staff Papers, Palgrave Macmillan, vol. 35(3), pages 422-436, September.
    2. Inna Hnydiuk, 2015. "Budget System Decentralization: Experience of Slovakia and Prospects for Ukraine," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 80-87, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    state budget; budget deficit; public debt; foregone capital shortcoming; fiscal policy; domestic government debt bonds;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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