FISCAL SUSTAINABILITY IN THE CONTEXT OF EUROPEAN INTEGRATION
Abstract
The article analyzes the role of medium-term budget planning as an important tool for ensuring fiscal sustainability and effective management of public finances in Ukraine. It has been established that medium-term budget planning allows you to align strategic goals with budget opportunities, increasing the predictability and stability of budget policy. In the process of implementing medium-term budget planning, the main challenges are the need to change the budget culture, improve the skills of civil servants, and improve monitoring of the implementation of budget programs. In particular, in 2023, a significant increase in the budget deficit was recorded and reaching 5.5% of GDP, inflation in 2023 amounted to 22.3%. The dynamics of public debt also indicate serious risks to fiscal sustainability - there is a significant increase in debt obligations - there is a significant increase in debt obligations - in 2024, Ukraine's external debt reached 30 billion US dollars, which is 15% more than in the previous year. In addition, external debt traditionally exceeds internal debt, which emphasizes Ukraine's dependence on international creditors. It is emphasized that against the background of these negative processes, the prospects for Ukraine's European integration will significantly increase due to the introduction of medium-term budget planning due to an increase in the level of compliance with EU requirements regarding fiscal discipline and transparency of the budget process. It is accented that medium-term budget planning will allow governments to effectively manage financial resources, minimize the risks of budget deficits and debt burdens, and adapt budget policies to the high degree of turbulence in the external economic environment. The article substantiates the need for reforms to ensure fiscal stability, in particular, reducing dependence on external borrowing, optimizing public spending, and implementing effective fiscal strategies. It has been established that the successful implementation of medium-term budget planning is critically important for the stability of the Ukrainian economy and its integration into the European economic system in the face of modern global challenges.
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