Krupei O. Fiscal consolidation: tools and prospects of introduction in Ukraine

Object - fiscal consolidation. Purpose - to systematize methodological principles of fiscal consolidation as the basis for development of theoretical arguments and application recommendations for its use in Ukraine. Methods - dialectical method of induction and deduction, historical, structural and logical analysis, synthesis, grouping, comparison, economic modeling, forecasting. Results - theoretical justification of fiscal consolidation and the development of recommendations for its use in the growth of state debt of Ukraine. Novelty - theoretically substantiates the target level of public debt, the achievement of which should be directed towards fiscal consolidation, so that explains how the debt nominal anchor in the economy of Ukraine, which means activation programs consolidate debt in excess of 60% of GDP; developed temporal approach to the choice of term horizon of fiscal consolidation on which justified the choice of short and long-term consolidation program according to the depth of fiscal problems and the degree of imbalance of public finances; The approaches to the use of a formal macro-models (fiscal multipliers) tools and empirical analysis of fiscal policy in the identification of the nature of the fiscal action of the government of Ukraine and predicting the trajectory of public debt; theoretically grounded approaches to explain the debt vulnerability of the domestic economy on which proved inadequate value of debt to GDP of 60% as an indicator of the debt security; reasonable structure consolidation program, part of which defines a specific macroeconomic goal, a combination of income and expenditures in the budget deficit limits, the introduction of fiscal rules and institutional reforms to reduce budget expenditures on an ongoing basis. Introduced in the activities of the Ministry of Finance of Ukraine; Main Department of the State Treasury Service of Ukraine in Chernivtsi region; State Tax Administration in Kyiv. Chernivtsi Main Department of the State Fiscal Service in Chernivtsi region and in the educational process of Chernivtsi University and Ternopil National Economic University. Scope of application - activities of the Ministry of Finance of Ukraine, National Bank, IMF Resident Representative in Ukraine, the Verkhovna Rada of Ukraine on Budget