Budget Deficit Management: Foreign Experience and Lessons for Ukraine

Abstract

The article is devoted to deepening the scientific foundations of overcoming the budget deficit, identifying modern methods and approaches to managing the budget deficit in the leading countries of the world, developing a proposal for the introduction of new fiscal rules in the budget process of Ukraine.

The measures of the governments of the leading countries of the world to reduce the budget deficit are analyzed, and the best foreign practice of reforming tax legislation is revealed in order to increase tax revenues to the budget in order to balance it.

The main causes of the budget deficit in Ukraine are identified, additional challenges to achieving budget balance in the conditions of military aggression are revealed. The dynamics of the deficit of the State Budget of Ukraine for 2018-2022 are given, and the dominant trends in the field of public finances according to the results of 2022, which arose in the conditions of martial law and require a decisive response from the country's government, are determined.

Proposals have been developed to improve approaches to the formation of the fiscal policy of Ukraine based on the generalization of the experience of EU countries in solving the problem of reducing the budget deficit and public debt, and taking into account the provisions of the Strategy for Reforming the State Finance Management System of Ukraine for 2022–2025.

It is emphasized the need to modernize the national system of fiscal rules, taking into account the influence of internal (institutional and macroeconomic) and external (globalization) factors to increase the effectiveness of budget deficit management.