Government debt management: challenges and perspectives

Abstract

The article examines the current tendencies of the government indebtedness in the world. It proves the rapid growth of the government debt in the different countries around the world after the 2008–2009 financial crisis and analyzes the reasons for government debt increase in particular countries and its consequences. The study is devoted to the research of the government debt in developed and developing countries. Particular attention is paid to the government debt of Japan, the USA, the European Union countries. In the article, the government debt of Ukraine, its tendencies, and consequences for the economy are analyzed. The state borrowings in Ukraine are often used for financing the servicing and payment of the existing debt. Government debt can be an important investment source and used for the development of the economies. But in the conditions of its rapid and unlimited growth, government indebtedness can be a burden for the economy.

Threshold effects of public debt on the tax burden: evidence from EU member states

“…The topic of public debt is widely analyzed in scientific literature, especially at the time when the countries of the EU are facing various crises and doubts about economic stability, the topic of public borrowing becomes extremely relevant. Public borrowing is often associated with financing accumulated budget deficits (Afonso & Ibraimo, 2018;Slav'yuk & Slaviuk, 2018). According to Ostry et al (2015), the causal relationship between the tax burden and public borrowing runs in both directions: high public debt creates the need for changes in economic activity (labor, capital) to cover the public debt, which is limited by increasing tax rates and/or by reducing productive government spending.…”

Testing the Ricardian Equivalence Theorem: Time Series Evidence from Turkey

“…These arguments arise due to inefficient management of government debt which can negatively impact public or private investment and the savings of the economy (Odim et al 2014). On the contrary, if borrowing has been allotted effectively, an economy can achieve profits, as debt financing of public spending can make positive contributions to gainful investment and indeed to economic development (Slav'yuk and Slaviuk 2018).…”

Causes of Development of the Public Debt, Its Management and Service, Optimization of Ukraine's Foreign Policy

“…Відповідно до Маастрихтського договору, співвідношення державного боргу до ВВП у Європейському Союзі повинен бути нижче 60%. Середній рівень цього показника у Європейському Союзі у 2017 р. становив 81,6%, а у Єврозоні -86,7% [11].…”