Budgetary policy of the emerging countries in conditions of institutional transformations

Abstract

In the conditions of institutional transformations, the issue of raising the budgetary policy prudence level, strengthening its impact on socio-economic processes becomes relevant, especially in emerging countries. This paper delivers the essence and role of budgetary policy in ensuring the macroeconomic stability and social welfare in the emerging countries. The approaches to budget policy vectors in terms of budget revenues and expenditures, budget deficits, and public debt are presented. The article provides a detailed analysis of public debt service ratio, the proportion of the budget deficit, and public debt to GDP in national currencies of emerging countries to the US dollar during 2000–2018. The authors outlined the budgetary policy objectives, summarized and systematized the approaches to its implementation in the emerging countries in the conditions of institutional transformations. The article identifies the features of medium-term public debt management strategies in the emerging countries, in particular in terms of marginal indicators of the budget deficit and public debt, improvement of the debt management system, maintaining the debt portfolio optimal structure. The impact of budgetary policy on social and economic processes is proved.