Fiscal solvency and fiscal limitations under economic crisis and recovery: an empirical approach of Ukraine
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Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
LLC «Consulting Publishing Company «Business Perspectives»
Abstract
The challenges of crisis phenomena can lead to a radical transformation in the stance of public finance and affect the opportunities for economic development. Since the instruments of fiscal adjustment directly determine the solvency and stability of public finances, in these conditions they require special attention. The purpose of the paper is to investigate and assess the correspondence between fiscal solvency, fiscal limitations, and socioeconomic development of Ukraine in a crisis and recovery policy based
on compliance with fiscal rules. Empirical studies have not revealed a strong direct correspondence between fiscal solvency, debt security, and socioeconomic development. But at the same time, the implementation or approaching the implementation of fiscal rules has a positive effect on the level of socio-economic development only in conditions of macroeconomic stability, therefore, in a crisis, it is very important not to tighten fiscal rules too early. However, data from the post-crisis policy of Ukraine (2011, 2015, 2021) indicate that incentive measures were prematurely curtailed.
Description
Keywords
fiscal solvency, debt security, economic growth, human development, fiscal rules
Citation
Fiscal solvency and fiscal limitations under economic crisis and recovery: an empirical approach of Ukraine / Hanna Kotina, Maryna Stepura, Anastasiia Kornieva, Alla Slavkova // Investment Management and Financial Innovations. – 2023. – Vol. 20, Iss. 1. – P. 277–292.