STATE DEBT AS A COMPONENT OF SPHERE OF PUBLIC FINANCES

The subject of the study. Sphere of government finance. The aim of scientific research. The essence and value of public debt as part of public finance. Research Methodology. The work was based on a systematic approach to the study of peculiarities of public debt as a part of goverment finances. Results. During research the systematization of components that determine the characteristics of public debt as an important category government finance in the context of its relationship with the budget deficit, the performance of the tasks of financing the budget, the state investment activity, macroeconomic impacts (positive and negative) on social economical development was conducted. Field of application. Further scientific researches focusing on the introduction of medium-term budget planning. Conclusions. Analyzed the economic substance of public debt as a part of goverment finances. It is shown that the main social purpose of public debt is to finance the budget, getting additional posibilities of public investment and stimulate economic development. With theoretical and methodological tools of financial science analyzed the economic substance of government debt as part of public finance its social purpose, which is to finance the budget, getting additional posibilities of public investment and stimulate economic development that allows to effect of increasing the scale of the national economy faster than in the absence of borrowing. The presence of excessive public debt becomes a brake economic growth, prevents conduction of economic policy that takes into account national interests, debilitating state budget and the economy for significant payments to creditors.