Bashko V. Budget deficit and features of its financing in Ukraine

The dissertation is devoted to perfection of approaches of realization of state fiscal policy concerning determination of necessary volumes and sources of budget deficit's financing, directions of the usage the attracted resources. The essence of budget deficit and sources of its financing as economic concept is considered in the research. The features and drawbacks of accounting of budget deficit in Ukraine are suggested. The necesserity of different types of budget balances to determine the orientation of fiscal policy is advocated. The key factors influencing instability of development of domestic economy are carried out. The role of budget deficit in the neutralizing of these factors is examined. There are determined cyclical and cyclicaly adjusted components of budget deficits in 2004-2010.The author proves the existence of two ways correlation between private investments and government deficits. Responding to decline of domestic demand a government has tendency to increase the budget deficit which is considered later as a reason of decline of private investment. The domestic borrowing in the circumstances of financial crisis can neutralize its consequences by accumulating resources which, other things being equal were out of circulation. The new approaches to attract financial resources by local budgets, budget institutions and state enterprises are offered.