Значення державного кредиту як елемента фінансової системи держави
The value of the public credit as an element of the financial system of the state

Summary/Abstract: The article's main objective is to review thefunctions and effects of public credit. Author interested in both positive and negativeaspects of this phenomenon. As a conclusion, the key provisions of the economy,which is abusing this financial instrument becomes, in essence, the debt, whichadversely affects the entire social life of the country.The purpose of the article. State credit is recognized as one of the elements ofthe financial system of the state. While there is such an element is not immediatelyand not next to the tax or fiscal system, but at the present stage it is already firmlyestablished in the financial system of any country. In the twenty-first century it isdifficult to find the budget of some States that had no shortage; almost impossible tofind a country that could do without the institution of government lending plan theirincome and expenses.Presenting main material. This provision applies both economicallydeveloped and developing States. Therefore, it can be noted that the government loanhas acquired a permanent character and has a significant impact on the economicsituation of the whole society. In this regard, the interest in this phenomenon at thepresent stage not only does not stop, and compounded. This is connected with hugedebts, which have emerged in the budgets of modern States, and the need for findingways for their servicing and repayment, and overall – the place and role of publiccredit in the financial system of the state, its impact on economic development of thesociety, both in a negative and in a positive direction.With the development of financial relations and financial systems developedand improved and lending mechanism. In the modern world there are many forms(types) of loan: private, public, banking, government, export, commercial, municipal,commercial and the like. They have their own characteristics, but the essence remainsindispensable – the subject shall be provided on a time and under appropriateconditions. One type of loan is a state loan, in which the government can act in therole of a creditor and the debtor. As a rule, carrying out its financial activity of thestate is a creditor in respect of some sectors of the economy, and the debtor in respectof internal and external market. State credit is a tool that allows you to mobilizepublic funds and additional necessary funds, so government loans have become inmodern conditions second after taxes methods of financing budget expenditures.Accumulated thus means primarily designed to cover the budget deficit. So the stateis closing the gap in time between the need for money and their availability.An important rule of public credit should still be striving to be as inexpensiveas possible, and even free use of loan capital. Payment is not an inherent feature ofthe loan. Financial history knows examples when zero percent loan has led toeffective results in the economy, and more importantly, to the ability to repay theloan. The second question is that of the creditor, such a situation might not be happy,and therefore, it is possible to offer a portion of the profits that will be received as aresult of the use of borrowed funds. Because the percentage (but still a highpercentage), or otherwise significantly increase the amount of debt that you need toreturn that, as mentioned earlier – are an additional burden on the state budget.Conclusions. From the foregoing it is clear that the government loan is an obligatoryelement of the financial system of any state. As a financial instrument it can kasuatito state both positive and negative effects, depending on the tasks, set before thegovernment.Conclusions. The negative value of this phenomenon is manifested in thetransformation of the economy on a debt that subsequently leads to a decline in allspheres of life of such a society, because, the money must push to its development,will be levied to service the interest on the debt. Such a state loan can lead thecountry and to the loss of its sovereignty. But the intelligent and careful use of thismechanism contributes to the realization in society switchgear and control functions,allows you to replenish the budget revenues, without resorting to this issue.

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