ROLE OF BUDGET SECURITY IN ENSURING THE STABILITY OF THE FINANCIAL SYSTEM OF UKRAINE

Abstract

One of the defining components of ensuring the stability of the financial system is the sphere of public finances, because problems with ensuring the filling and balancing of the budget can have a significant destabilizing effect on the socio-economic development of the country. The purpose of the study is to generalize existing approaches to determining budget security, as well as to assess its impact on the stability of the country’s financial system.Financial stability is the state of the financial system, in which it is able to properly perform its main functions, as well as withstand crisis phenomena. The article examines the theoretical aspects of the concept of "budgetary security", by which we understand the state of ensuring the solvency of the state, taking into account the balance of revenues and expenditures of the state and local budgets and the efficiency of the use of budget funds. The impact of budgetary security on the financial stability of the state is substantiated. The indicators that determine the level of budget security are singled out: the amount of revenues and expenditures of the consolidated budget, their structure, the size of the budget deficit and sources of coverage, the level of redistribution of GDP through the consolidated budget; the amount of payments for servicing the state debt incomparison with the revenues of the State Budget.An assessment of the level of the country’s budget security for 2019-2021 was carried out and conclusions were made about significant threats to the budget system, in particular: the deterioration of the dynamics of tax revenues as a result of military actions, compared to the planned indicators; growing budget revenue losses from tax incentives provided to stimulate the economy; deterioration of payment discipline and growth of taxpayers’ tax debt against the background of deterioration of business activity; increase in budget expenditures for defense measures; growth of the budget deficit and public debt beyond economically safe limits. Proposals have been made to increase the level of financial stability in the budgetary sphere.