Improving the system of public debt management and strengthening sustainability of public finances

The scientific research describes the essence of public debt. It shows the lists the tasks that must be fulfilled in the process of public debt management. The paper analyzed the problems of state debt in Ukraine, which affect the development of our country negatively. The predictive indicators of public debt of Ukraine are investigated. Public finances play an important role in the development of the country. Market economy requires not only state regulation, but also state funding of a wide range of programs for supporting business competitiveness, providing standards of life for citizens, undertaking comprehensive reforms aimed at upgrading the economic system as a whole. This role increases at the time of deepening crisis in economy, the implementation of programs of economic growth, restructuring of country economic complex, introduction of innovative model of economy development, establishment of an adequate system of international cooperation. Public debt is an integral part of the economic system, which realizes direct and indirect impact on all its main elements, in particular, on the state budget, monetary-credit, and monetary system, inflation, domestic savings, and foreign investment. Therefore, the public debt management is an integral component of state macroeconomic policy because the use of the mechanism of public debt can become a powerful factor for economic growth, smooth out unevenness in the flow of payments to the budget; the mechanism of state debt is actively used to regulate monetary circulation and the level of business activity in the country.