been taken into account not only the Consolidated Budget revenues, but the
extrabudgetary funds as well (Table 3).
Table 3 Budget burden in EU-28 countries and Ukraine, % of GDP
Indicators
2010
2011
2012
2013
2014
2015
2016
2017
EU-28 countries
50.0
48.6
49.0
48.6
48.2
47.4
47.2
46.9
Ukraine
45.9
42.7
46.1
46.3
44.6
45.0
45.8
45.2
Source:
compiled
according
to
the
statistics
of
the
European
Union
(http://appsso.eurostat.ec.europa.eu)
and
the
State
Statistics
Service
of
Ukraine
(http://www.Ukrstat.org)
In order to compare the EU countries and Ukraine budget structure indicators
correctly, the amount of deductions to extrabudgetary funds (pension and social),
which were also reflected in the social benefits indicator, was added to the Ukrainian
budget expenditures.
According to the data, the budgetary burden in Ukraine is slightly lower than in
the EU zone’s countries, but the domestic indicator is characterized by considerable
volatility and the opposite trend direction for its changes. If in European countries there
is a tendency to decrease or stabilize the growth rates of budget expenditures, in
Ukraine, their uneven gradual growth occurs.
Before consolidating the budget and looking for mechanisms for its
implementation, it is necessary to clearly determine at the state level what the demand
or supply economy the government is trying to build in the country, since it will depend
on the choice of directions and volumes of budget funds spending.
Demand economy provides for significant state subsidies (including social
transfers) from the budget to support aggregate demand in the country. In order to have
a multiplier effect of spending budget funds, it is necessary to limit the volume of
imports to the country and thereby stop the outflow of currency from the country. It
will be problematically to do it in the context of Ukraine's accession to the WTO. In
addition, in order to surmounting the crisis, it is necessary to direct budgetary funds for
investments, not for consumption.
We agree with the domestic scientists’ opinion, in particular V. M. Heyets and
A. I. Krysovaty, that in Ukraine it is necessary to develop the economy of supply
through the introduction of import substitution of technologies and increase of
domestic goods and services’ volumes. Such economy’s model implies an increase in
the public investment volume in innovative and infrastructure projects, which will lead
to an increase in public debt, with the effect only tangible in the medium and long term
[1, p.66].
The all leading countries’ governments have faced with the impossibility of
constantly stimulating demand in the context of the global economic recession. Due to
restrictions on public investment, falling living standards, reducing the private
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