Wenger T. Social and Economic Background and Consequences of the Debt Dependence of the State.

The evolution of scientific views on the problem of the public debt and its consequences for society is researched. The existing approaches to the definition of the public debt are analyzed, the structure of the public debt is defined. Main effects of the public debt accumulation in short-term and long-term periods are studied. The understanding of the term "debt dependence of the state" is extended basing on the analysis of the dynamic interaction between the main factors that define increase of the government's borrowings. Three levels of the debt dependence of the state are defined and special aspects of its influence on the economic and social spheres are explained. The efficiency of the mechanisms of debt dependence adjustment available for the states with various levels of economic development is researched. Main reasons of the public debt increase of Ukraine are defined. Social and economic consequences of the debt dependence of Ukraine are analyzed, inter alia its influence on the capital assets accumulation and increase in social budget expenditures. The contradictions in the debt policy of Ukraine are defined, priority areas for its improvement are proposed.