External Debt Burden and Its Impact on the Countries’ Budgetary Policy
External Debt Burden and Its Impact on the Countries’ Budgetary Policy

Summary/Abstract: The impact of the global world economy increases the relevance and significance of the debt policy, contributing to consolidation of the state guarantees for the national economy. The internal and external policy implemented by the state and failing to provide the balance of budget revenue and expenditure is a cause of the national debt. Alongside with that, it is impossible to identify any specific country which would not have faced such a problem in any of the periods in its history. The correlation analysis employed in studying the composition and structure of the external debt of the world countries’ leading economies enabled to characterize and prove most likely the assumption of export growth depending on the increase in the external debt in the analyzed subjects, and the extent of impact on the growth of the corporate sector activity before everything else. At the same time the study revealed the negative trends of increasing the national debt ratios in comparison to the corporate one when producing medium- term forecasts for an individual country of the world. This, in turn, allowed formulating the main directions for the identification of further reserves in improving efficiency of the state’ external debt management.

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