Tetiana Paientko



Optimization of Government Expenditures for the Economic Development of the State. The Case of Ukraine

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The economic crisis in Ukraine requires the government to change its approach in the management of government expenditures. The aim of this article is to explain the optimal amount of government investment needed in the economy of Ukraine and determine the economic sectors where government investments will be the most effective. It was calculated that to achieve stable growth of GDP the ratio of budgetary investments and business investment should be in these proportions: 35% should be from budgetary investments; 65% from investments from the business sector. Priority economic sectors needing government investment are agriculture and the processing industry. These will help to increase the export of finished products and reduce raw material exports in the future. GDP growth will contribute to the payment of foreign debt obligations, and reduce the budget deficit.


budget, government expenditures, budget deficit, government investments, financial flows


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Tetiana Paientko. (2016) Optimization of Government Expenditures for the Economic Development of the State. The Case of Ukraine. International Journal of Economics and Management Systems, 1, 49-53


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