The system of public debt management in conditions of institutional transformations

  • Valentyna Makogon Kyiv National University of Trade and Economics
Keywords: public finances, state debt, fiscal policy, debt policy, mechanism of public debt management


Relevance of research topic. In the context of institutional reforms, the issue of the limited state financial resources for the implementation of the tasks and functions entrusted to them by state authorities and local self-government is being updated, which predetermines the development of a system of public debt management, which is a powerful instrument of macroeconomic policy. At the same time, the growth of the level of public debt in both developed and transformational economies is conditioned by a number of factors, the most important of which are: the formation of a budget deficit that is of a permanent nature; the need for public expenditures aimed at ensuring macroeconomic stability and accelerating the pace of economic growth, the development of the social sphere. Formulation of the problem. In the context of institutional reforms, the important task is to develop a debt strategy that will ensure the concentration of limited investment resources in those sectors of the economy that will accelerate the pace of economic growth, which requires further scientific research of the theoretical and applied aspects of the formation and implementation of budgetary and debt policies, their coherence, improvement the mechanism of public debt management. At the same time, the choice of tools for managing public debt can both negatively and positively affect macroeconomic stability in the country. Analysis of recent research and publications. The problem of public debt management is rather widespread in scientific research. These are works by well-known domestic and foreign scholars: J. Buchanan, U. Mitchell, J. M. Keynes, T. Bogolib, I. Zapatrina, L. Lisyak, I. Chugunov and others. Identification of unexplored parts of the general problem. The above issues are actualized in connection with the intensification of globalization processes, the adverse external and internal economic environment, which requires the solution of a number of specific tasks related to the formation of public debt at an economically sound level. Setting the task, the purpose of the study. The objectives of the study are: to reveal the role of the system of public debt management in the regulation of socio-economic processes, to justify the relationship between debt and budget policy; carry out an analysis and assessment of Ukraine's state debt; to identify the main factors influencing the level of public debt; to clarify the provision for improving the efficiency of the mechanism of public debt management. The purpose of the study is to substantiate the priority tasks of debt policy in the context of institutional transformations. Method or methodology of conducting research. The article uses a set of methods of scientific research: system approach, statistical analysis, structuring, analysis, synthesis, and others. Presentation of the main material (results of work). The role of public debt in state regulation of social and economic development of the country is determined. The analysis and evaluation of public debt has been carried out. The priority tasks of the debt policy in the context of institutional transformations are substantiated. The field of application of results. The results of this study can be applied in the process of formation and implementation of Ukraine's debt policy, reforming the system of public finances. Conclusions according to the article. Ensuring macroeconomic stability in the country involves the development of an effective strategy for managing the public debt, justifying the strategic priorities of debt policy, based on realistic forecast indicators of the country's economic development. The improvement of the mechanism for managing public debt should be based on a clear combination of legally defined budgetary and debt policy instruments. The use of indicators of a structured, cyclically-adjusted balance can increase the validity of fiscal and debt policies. The high level of government debt and significant budget deficits create risks for financial and macroeconomic stability, their potential negative impact on economic development is far more devastating than the pro-cyclical nature of fiscal policies that only affect the economic dynamics in the short term. Accordingly, the important task of fiscal policy is to prevent the growth of public debt and budget deficit while limiting the negative impact of further fiscal consolidation on aggregate demand. The article defines the strategic priorities of debt policy in the context of institutional transformations.


Download data is not yet available.


1. B’iukenen, Dzh. M. & Mashreiv, R. A. (2004). Suspilni finansy i suspilnyi vybir: dva protylezhnykh bachennia derzhavy; [Public finances and social choice]. Kyiv: Vyd. dim «Kyievo-Mohylianska akademiia, 176 s. [in Ukr.]

2. Blaug M. Mitchel & Uesli Kler (2008). 100 velikikh ekonomistov do Keynsa [Great Economists before Keynes: An introduction to the lives & works of one hundred great economists of the past], SPb.: Ekonomikus, 218–221. [in Rus.]

3. Keyns, Dzh. M. (2012). Obshchaya teoriya zanyatosti, protsenta i deneg [General theory of employment, interest and money]. Moscow: Gelios, 352 s. [in Rus.]

4. Bogolib, T. M., Boholib, M. A. (2018). Obespechenie otkrytosti i prozrachnosti obshchestvennykh finansom, rasshirenie praktiki obshchestvennogo uchastiya [Ensuring openness and transparency of public finances, expanding the practice of public participation] Ekonomichnyi visnyk universytetu – University Economic Bulletin, 36/1. 23-32. [in Rus].

5. Instytutsiina transformatsiia finansovo-ekonomichnoi systemy Ukrainy v umovakh hlobalizatsii (2017).[Institutional transformation of Ukraine's financial and economic system in the conditions of globalization] : monohrafiia / Sidenko V. R., Skrypnychenko M. I., Ponomarenko V. S., Chugunov I. Ya., Lunina I. O., Blakyta H. V., Zapatrina I. V., Kvach Ya. P.; za zah. red. V. R. Sidenka. Kyiv : Kyiv. Nats.torh-ekon.un-t, 646 p. [in Ukr.]

6. Lysiak, L. V., Zhuravel, M. O. (2018). Biudzhetna polityka yak instrument zabezpechennia finansovoi bezpeky Ukrainy [Budget policy yak іnstrument zapepechennya finіnancevo bezpeki Ukraine]. Modern economics, 9. 53–59. [in Ukr.]

7. Chugunov, I. Ya., Makogon, V. D. (2007). Teoretyko-metodolohichni zasady perspektyvnoho prohnozuvannia dokhodiv mistsevykh biudzhetiv [Theoretical and methodological principles of perspective forecasting of local budget revenues]. Naukovi pratsi NDFI, 2. 3–14. [in Ukr.]

8. Biudzhetnyi kodeks Ukrainy: Zakon Ukrainy vid 08.07.2010 № 2456–VI. [The Budget Code of Ukraine: Law of Ukraine dated 08.07.2010 № 2456-VI]. URL: [in Ukr.]

9. Rozporiadzhennia Kabinetu Ministriv Ukrainy «Pro Osnovni napriamy biudzhetnoi polityky na 2019-2021 roky» vid 16.05.2018 № 8357 [On the main directions of fiscal policy for 2019-2021 years: Law of Ukraine dated 16.05.2018 № 8357] URL: [in Ukr.]

10. Serednostrokova stratehiia upravlinnia derzhavnym borhom na 2018–2020 roky [Medium-Term Strategy for State Debt Management for 2018-2020]. URL: [in Ukr.]

Author Biography

Valentyna Makogon, Kyiv National University of Trade and Economics

Doctor of Economic Sciences, Senior Researcher Associate Professor of the Department of Finance

How to Cite
Makogon, V. (2019). The system of public debt management in conditions of institutional transformations. University Economic Bulletin, (43), 160-166.
Finance, Monetary Circulation and Credit