State budget deficit as a leading indicator of state budget security

Shykina Nataliya
PhD in Economics, Assistant Professor of the Department of Finance, Odesa National Economic University, Odesa, Ukraine, E-mail:shykina_nataliya@ukr.net, ORCID ID: https://orcid.org/0009-0001-7996-2389

Sirenko Anna
student of the Faculty of Economics and Business Management, Odesa National Economic University, Odesa, Ukraine, E-mail:sirenko.anna06@gmail.com

Cite this article:

Shykina N., Sirenko A. (2024) State budget deficit as a leading indicator of state budget security. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Defitsyt derzhavnoho biudzhetu yak providnyi indykator biudzhetnoi bezpeky derzhavy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 7-8 (320-321), pp. 108-113.

Abstract

The article shows that Ukraine's state budget deficit has become a critical issue in light of the nation's ongoing economic and political challenges. The purpose of the study is to identify the specific factors contributing to this deficit and assess their impact on the country’s budget security. Considerable attention is paid to analyzing the effectiveness of existing budget management strategies. The study focuses on identifying potential deficiencies and proposing innovative measures. These measures aim to enhance financial stability and promote sustainable development. The research methodology involves a comprehensive review of recent studies and publications that explore the consequences of budget imbalance. Key issues include increased public debt, reduced investment, and insufficient funding for social programs. The study utilizes methodological recommendations from the Ministry of Economic Development and Trade of Ukraine. It focuses on indicators of budgetary security, such as the ratio of budget deficit to gross domestic product (GDP) and public debt servicing levels. The results of the study reveal that Ukraine's budget deficit is influenced by a complex interplay of economic, political, and structural factors. The deficit has fluctuated significantly over the years, with notable increases during periods of crisis, such as the 2022 Russian invasion and the COVID-19 pandemic. The findings indicate that while deficits can serve as a tool for economic stimulation during crises, their long-term management is crucial for maintaining financial stability. It is concluded that addressing Ukraine's budget deficit requires a nuanced understanding of its underlying causes and impacts. The practical significance of the research lies in its potential to inform more effective fiscal policies and strategies. By highlighting existing gaps in budget management, the study offers valuable recommendations for policymakers aiming to enhance financial stability and promote sustainable development in Ukraine. The article provides a framework for future studies to build upon, ensuring continued progress in managing fiscal challenges.

Keywords

state budget deficit, budget security, indicators of budgetary security, gross domestic product.

JEL classification: E600; H610; DOI: https://doi.org/10.32680/2409-9260-2024-7-8-320-321-108-113

UD classification: 338.23

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