MECHANISMS OF FINANCING OF STATE’S BUDGET UNDER CONDITIONS OF THE OVERCOMING OF FISCAL DISBALANCES

Abstract

The analysis of the dynamics of indicators of the financing of state’s budget under conditions of the sharpening of fiscal risks is implemented. The conclusions are drawn that the tendencies of their changes reflect the accumulation of fiscal disbalances in the frames of state’s budget, state’s social funds, and state’s corporations for the last years. It is noted that, by the totals of 2015, the significant decrease in the deficit of state’s budget is attained. However, we observe the tendency to the conservation of high indicators of state’s loans, whose volumes exceed essentially the indicators of the deficit of state’s budget. The reason is the financing of operations of the budget-debt correction.
It is concluded that the basis for the attainment of such results is the conservation of significant volumes of quasifiscal operations and the subventions for the compensation of a difference between the tariffs of the thermal energy production, the compensation of losses of the depositors of deposits, and the solution of the problems of compensation of VAT. A consequence of such operations is the accumulation of state’s debt, which affects negatively the economic, financial, and social development of our country. The decrease in the fiscal deficit in 2015 was caused to a significant extent by the devaluation of the national currency and a growth of the inflation and was not accompanied by an essential upturn of economy’s development and by an increase in population’s incomes.
Some propositions concerning the continuation of the policy of fiscal consolidation under conditions of the restraint of its negative influences on the economic growth, financial stability, and the living standard of citizens are given. With the purpose to overcome the fiscal disbalances, the author proposes the introduction of a severe control over the budget expenditures; reformation of the system of mobilization of incomes of the sector of state’s management; formation of a more rational system of mobilization of the profitable base of the Pension Fund of Ukraine and the increase in the efficiency of the expenditure of its resource; improvement of the mechanisms of financing of state’s budget; reorientation of the fiscal policy to the increase in population’s real incomes in the medium- and long-term periods; decrease in the gap between the rich and poor citizens, creation of conditions for the fast development of the middle class, and improvement of state’s support of citizens with low incomes.