Formation and management of public debt sustainability on the example of the Republic of Kazakhstan and the Russian Federation

Abstract

Purpose The purpose of this paper is to study debt sustainability of countries with a resource-based economy on the example of the Republic of Kazakhstan and the Russian Federation. Design/methodology/approach Macroeconomic indicators and data on external and internal public debt of the Republic of Kazakhstan and the Russian Federation for the period from 2007 to 2019 were analyzed using quantitative, qualitative, comparative, descriptive and graphical methods. Based on the collected data, the indicators were calculated, analyzed and compared, taking into account the threshold values, using The Debt Sustainability Framework for Low-Income Countries of the International Monetary Fund and the World Bank. Findings The results of the study showed that the indicators of the public debt of both the Republic of Kazakhstan and the Russian Federation, during the period covered by the study, were in the zone of reduced risk and were stable. In addition, the study revealed a slight shift in the structure of the public debt of the Republic of Kazakhstan toward a decrease in the share of domestic borrowing (from 67% to 55%), whereas in the structure of the Russian public debt, the share of domestic borrowing increased significantly (from 52% to 74%). Originality/value The results of this study can be applied by scientists to analyze the sustainability of public debt in various countries and regions, as well as by officials to determine the fiscal and budgetary policies of the Republic of Kazakhstan and the Russian Federation, as well as other states.

Public Debt Sustainability in Indonesia after Financial Crisis and During COVID-19 Pandemic

“…There are two methods of analysis: The Threshold Value of The Debt Sustainability Framework for Low-Income Countries (LIC-DSF) and the Solvency Rate of External Debt (SRED). The first objective of this paper is to measure the sustainability of government debt using the Threshold Value from The Debt Sustainability Framework for Low-Income Countries (LIC-DSF) from the International Monetary Fund (IMF) and the World Bank [24] and to develop from Mukhtarkan's research [11]. The data needed for The Threshold Value of The Debt Sustainability Framework (LIC-DSF) are external public debt, GDP, external public debt interest payment, total of export, and tax revenue in Indonesia from 2008-2020.…”

“…Several previous studies related to the analysis of debt sustainability in developing countries [11][12][13][14][15][16][17][18][19][20][21][22][23]. In analyzing debt sustainability in Kazakhstan and the Russian Federation, Mukhtarkhan [11] applies the threshold value of public debt in both countries. The results show that from 2007 to 2019, the ratio of public debt to GDP in the Republic of Kazakhstan tripled from 6% to 18%.…”

“…The ratio of external public debt to GDP (%) 30 40 50 The ratio of external public debt to export (%) 140 180 240 The ratio of external public debt interest payment to export (%) 10 15 21 The ratio of external public debt interest payment to tax revenue (%) 14 18 23 Source: International Monetary Fund (IMF) dan World Bank [17] and Mukhtarkan [11] 4. RESULTS AND DISCUSSION…”