K. Cherkashyna, PhD in Economics, Аssociate Professor Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, L. Mogylko Kyiv branch of JSC “Bank Mist”, Kyiv, Ukraine EVOLUTION OF APPROACHES TO FINANCE THE BUDGET DEFICIT

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In the article, the causes and existence of the state budget deficit are defined. The main source of budget deficit financing in historical retrospective are considered. The most popular government securities which issued in foreign countries are compared in the article. The dynamics of the budget deficit in Ukraine and the sources of its coverage are analyzed in the article. There are three main types of government securities in Ukraine, such as: national currency-denominated government bonds, foreign currency-denominated government bonds and target government bonds. The main market maker of the government bonds’ market is National Bank of Ukraine. The volume of resources, which are mobilized from the issue of the national currency-denominated government bonds are major then the volume of resources, which are mobilized from the issue of the foreign currency-denominated government bonds The necessity of further improvement of government securities as an important source of budget deficit financing is emphasized.

Keywords: budget deficit, government borrowing, government securities, government bonds.

DOI: http://dx.doi.org/10.17721/1728-2667.2014/164-11/14

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