The Fiscal Space Development for Economic Growth (applied research)
Terms of execution – І quarter 2020 – ІІ quarter 2022
State Registration No. 0119U003650
Supervisor – Corresponding Member of NAS of Ukraine I. Lunina
Customer – National Academy of Sciences of Ukraine
The object of the study – the fiscal space of Ukraine
The objective of the study – to improve approaches to assessing fiscal space development in terms of ensuring its impact on sustainable economic growth.
Research methods:
- systemic and historical-logical analysis
- structural-functional analysis
- statistical comparisons, economic-mathematical modeling, etc.
Results:
- defines the meaning of the concept of "fiscal space" for low-income countries with a high public debt cost
- approaches to expanding the fiscal space of Ukraine during mobilization and martial law are justified
- instruments for assessment of potential for Ukraine's fiscal space development, based on indicators of potential GDP and the GDP gap, as well as corporate income tax gap are worked out
- the fiscal risks of global trade wars for third countries are determined and fiscal instruments for reducing their negative consequences are proposed
- the principles of diagnostics and enhancing the budget financing effectiveness of public spending that ensure the formation of human capital (health care, education) are substantiated
Recommendations for use – the results of the research can be used by
- legislative and executive authorities in the development of strategic economic development documents
- amendments to the Budget and Tax Codes of Ukraine
- the preparation of legal basis for the improvement of the fiscal system of Ukraine
Based on the research results, a research paper "Development of fiscal space to ensure economic growth" was prepared.