Optimization of Government Expenditures for the Economic Development of the State. The Case of Ukraine

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Date
2016
Authors
Paientko, Tetiana
Паєнтко, Тетяна Василівна
Паентко, Татьяна Васильевна
Journal Title
Journal ISSN
Volume Title
Publisher
IARAS
Abstract
The economic crisis in Ukraine requires the government to change its approach in the management of government expenditures. The aim of this article is to explain the optimal amount of government investment needed in the economy of Ukraine and determine the economic sectors where government investments will be the most effective. It was calculated that to achieve stable growth of GDP the ratio of budgetary investments and business investment should be in these proportions: 35% should be from budgetary investments; 65% from investments from the business sector. Priority economic sectors needing government investment are agriculture and the processing industry. These will help to increase the export of finished products and reduce raw material exports in the future. GDP growth will contribute to the payment of foreign debt obligations, and reduce the budget deficit.
Description
Keywords
budget, government expenditures, budget deficit, government investments, financial flows
Citation
Paientko T. Optimization of Government Expenditures for the Economic Development of the State. The Case of Ukraine / Tetiana Paientko // International Journal of Economics and Management Systems. – 2016. – Vol. 1. – P. 49–53.