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Abuselidze George
ANALYSIS OF THE FORMATION
AND USE OF BUDGETARY POLICIES ENSURING THE SOCIO-ECONOMIC DEVELOPMENT OF TERRITORIAL UNITS
Summary:
The main function of the state in nowadays-civilized world is to maintain the macro-economic proportions throughout the country and avoid financial and economic crises in regions that have priority in the formation of the new economic system in Georgia.
The object of the research is the formation and use of Budget policy of Georgia;
One of the most problematic places is socio-economic development of territorial units;
As a result of the research it is shown that current economic and political system’s radical transformation process, creation of new economic system and ensuring its efficiency, requires mobilization of huge financial resources, which is impossible without proper functioning of the financial mechanism. This in turn requires implementation of sufficient financial and economic policy. The government should take responsibility of supporting financial-economic independence for territorial units.
In the future, the proposed forms of financial mechanisms and features of use for the arrangement and territorial integrity of the government.
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Mariam Voskanyan, Hripsime Gabrielyan
MEASURING THE IMPACT OF FISCAL POLICY ON THE ECONOMIC GROWTH OF ARMENIA
Summary:
The key objective of macroeconomic regulation is to achieve sustainable economic growth and development in the long term. At the same time, within developing economies, the task of ensuring sustainable economic growth in the long term faces the failure of institutions, and as a result, the ineffectiveness of the main mechanisms of macroeconomic regulation, especially those that have a long-term and ambiguous impact on the economy. The purpose of the study was to assess the impact of fiscal policy on economic growth, as well as to find fundamental common ground for increasing the impact of basic instruments on economic activity by improving transmission mechanisms.
The methodological basis of the study was a review of theoretical and practical models of the fiscal regulation impact on economic growth, known in the scientific literature, as well as approbation of the most optimal ones considered using the example of the Armenian economy. The result of the study was the conclusion that in the current format, the fiscal policy of Armenia does not have the proper positive impact on the rate of economic growth, and therefore requires a fundamental revision and the need to develop an appropriate strategy aimed at ensuring sustainable economic growth in the long term.
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Dimcho Ivelinov Shopov
ANALYSING AND FORECASTING THE DEBT BURDEN OF THE EU COUNTRIES: IS THERE A NEW EUROPEAN DEBT CRISIS ON THE HORIZON?
Summary:
The debt crisis which afflicted Europe highlights the weaknesses and instability of the EU member states' financial systems, as well as the inability of their national economies to maintain normal levels of indebtedness. The deteriorating economic environment requires changes in the fiscal policies across Europe. These changes are effected using new financial instruments to raise the necessary funds for implementation of economic reforms in the EU member states. The aim of this study is to analyse the current levels of sovereign debt across the European Union and to forecast their development in the future using specialized econometric software. The results may be used to identify possible future economic shocks in Europe.
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Rositsa Prodanova, Dimitar Kostov
ECONOMIC POLICIES OF THE EUROPEAN UNION – CONCORDANCE OR DISCORDANCE?
Summary:
The series of severe global and regional crises of various nature in recent decades, as well as the erratic success of the various anti-crisis measures undertaken by the European Union raise the issue of examining the concordance among the Union's economic policies. This study examines the coordination between EU’s monetary and fiscal policy to reveal that it is weak, which can be attributed to some crisis resolution shortcomings. The reasons for this incoherence can be found both in the institutional structure of the European financial institutions and in some rigid strategies of the Union (unwillingness to pursue a common fiscal policy, frugal budget spending policies, etc.)
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Presiana Nenkova, Angel Angelov
ASSESSMENT OF THE FISCAL STANCES OF THE BALKAN STATES
Summary:
The research paper presents an assessment of key budgetary and socio-economic indicators to reveal the effects of the models of public finance management adopted by the countries on the Balkan Peninsula. Based on these indicators, the analysis determines the fiscal stance of each Balkan country before, during and after the global economic crisis. The results of the analysis show a significant degree of similarity in the discretionary measures taken, but at the same time some more pronounced deviations from the general economic development of the Balkans.
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Veniamin Todorov
STABILIZATION ROLE OF THE MACROECONOMIC POLICY DURING THE COVID-19 CRISIS
Summary:
The article presents an analysis of the role of macroeconomic stabilization policy during the economic crisis caused by the COVID-19 pandemic. The analysis covers both monetary and fiscal policy using data on macroeconomic activity, inflation, the severity of restrictive measures, the level of uncertainty, the degree of financial stress on the financial system, etc. It tests two hypotheses formulated as follows: Hypothesis one is that considering the specific characteristics of the COVID-19 exogenous shock, there was a need for a quick and decisive response by means of a macroeconomic stabilization policy. The second hypothesis asserts that expansionary macroeconomic policies played a key role for the recovery of the economies from the COVID-19 recession and their subsequent growth. Both hypotheses are confirmed.
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Anna Ivanova
FISCAL CONSOLIDATION: EUROPEAN EXPERIENCE AND THE NEED TO IMPLEMENT IT IN UKRAINE
Summary:
The article focuses on the need to implement fiscal consoli¬dation in countries with high levels of public borrowing. It was found out that the level of public debt of the leading countries around the world far exceeds its allowable rate, which is 60% of GDP.
It was found out that fiscal consolidation is a state policy, which aims to balance public finances at the expense of reducing the budget deficit and accumulated debt. Theoretical models of the impact of fiscal consolidation on aggregate demand and aggregate supply are also studied. The major hazards to the implementation of the policy of fiscal consolidation in highly developed and developing countries are outlined. Attention is drawn to the need to im-plement fiscal consolidation in Ukraine, because the level of public debt in 2015 constituted 79.4% of GDP, significantly exceeding the limits of the al-lowable level. Identified are the main problems related to the functioning of public finance sector in Ukraine. Suggested are ways to stabilize public fi-nances in Ukraine.
