The article provides a quantitative estimation of the need in deficit financing for the budget-funded sector and economy as a whole. On the basis of analysis of the advan-tages of borrowings from different sources and taking into account the potential of the domestic market in 2008–2011, the author proposes a pattern of sources to finance the budget deficit. He also provides the conclusions about the advisability of a moderate state budget deficit at the level of 2% of the country’s GDP and the necessity to change the borrowings pattern in favor of the domestic sources

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The author proves the relationship between private investments and budget deficit. Besides private investments and state borrowings, the article also considers other factors of demand and supply of borrowed capital, which influence the crowding out effect. Attention is given to the action of risk-free state securities under the conditions of financial crisis

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The authors analyze the international experience of introducing indexed bonds and carry out calculations to assess the advis-ability of their introduction in Ukraine. The article establishes that the use of such tools will make it possible to reduce the cost of servicing the national debt and restore the confidence in the government’s anti-inflationary measures

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The research proves that for the countries with a raw-material dependent economy,) it is insufficient to use the traditional mechanism of anti-cycle fiscal policy, where the state performs the single func-tion of borrower, But it is necessary to create sovereign reserve funds Whose main function is to ac-cumulate and manage the funds appearing from the surplus during favorable conjuncture and cover the budget deficit during the conjuncture decline.
As Ukraine’s economy suffers from the dynamics of raw material prices, the problem may be solved if the state collects all revenues from the natural rent and properly spend them during the crises. To prove the above mentioned statements, the author has used the most popular method to refine reve-nues from natural rent by comparing the profitability rates of the companies receiving the revenues from natural rent with the normative profitability.

Keywords:countries with raw material dependent economy, economic cyclicity, anti-cycle policy, natural rent, budget deficit, sovereign funds

Based on a comparison between the profitability indicators of mining and non-mining enterprises, the author makes a conclusion about the low efficiency of the execution of rental payments in Ukraine. Based on financial and tax reporting, the article establishes that the profitability of the mining enterprises considerably exceeds that of non-mining one, which is due to the low rates of rental payments for the extraction of minerals. As a result, in 2006–2011, the government did not receive about 50% of all revenues from natural rent or over 50 bln. Hrn.
For more exact assessment of the volumes of generation and distribution of natural rent in Ukraine, the author analyzes the results of the companies’ financial activities by the following three mineral types: iron ore, oil and natural gas. In particular, actual and reference asset profitability have been compared. In the definition of the actual profitability of the mining companies, the author takes into account the factor of considerable decline of all revenues from the sales of the above mentioned types of minerals. In the definition of reference profitability, the author considers the profitability of the assets of the non-mining enterprises, as well as the interest rates on deposits and credits.
It is established that, in 2006–2011, total volume of the natural rent on the above men-tioned types of minerals amounted to 221.7 bln. Hrn. Almost 27% of that sum was transferred to the budget receipts in the form of rental payment sand corporate tax on the super profits of the iron ore extracting companies. Over 85 bln. Hrn. was redistributed in favor of the house holds through the mechanism of the pricing for the natural gas supply for the population. The remaining 77 bln. Hrn. was left to the extractors and buyers of the produce of the mining enterprises, due to the inefficient mechanists of the execution of rental payments.

Keywords:natural rent, rental payments, profitability, mining profitability, natural resources

The article investigates the amount and structure of public guarantees granted in 2004-2015, borrowings made under the state guarantees and guaranteed debt for the same period. Borrowers under the public guarantees are classified into four groups: general government's institutions, public corporations engaged in quasi-fiscal operations (QFAs) other than the central bank, public corporations not engaged in QFAs, and the central bank. It is proved that in Ukraine the mechanism of government guarantees is often used firstly as an instrument to conceal the budget deficit and central government debt, and secondly, as a form of compensation for part of the losses incurred by public corporations in the course of quasi-fiscal operations. The author analyzes the effects of guaranteed loans for each of the above mentioned groups and proposes various measures to improve the current procedures of the provision of public guarantees for better fiscal and debt sustainability.

Keywords: public guarantees, government enterprises, quasi-fiscal operations, budget deficit