Fiscal expansions and debt sustainability problems during a pandemic

Unprecedented epidemic and economic world-wide crises in 2020-2021 and large-scaled actions of state support for economies and humanitarian areas attracted attention to the problems of developments and effects of the active fiscal policy, as well as the methods of securing a long-term debt sustainability for public finances. The purpose of this article is revealing the common global and country-specific forms of expression of the fiscal and debt expansions in the course of pandemic and economic uncertainty, identification of their potential effects as well as defining paths for making public debt manageable over the long run. To achieve this purpose, the author reviews theoretical sources, research and advisory papers of the international organizations, elaborates on international databases of economic and financial indicators, applies a generalization method, historical and logical methods, methods of comparisons, analysis and synthesis. As a result, the author identifies the major achievements and problems of active implementation of the anti-crisis fiscal policy in the global context, analyses the dynamics of debt expansions in the different country groups and emphasizes the problem of accumulation of the debt-related risks. The common and distinguished features of the fiscal policy stance and debt position in Ukraine are revealed as compared to situations in other countries. The author suggests a set of debt burden indicators and calculates their values for Ukraine, that enables to establish a debt risk profile for Ukraine’s public finances. Taking into account the global problems of fiscal rules modifications, enhancing their role for debt sustainability, as well as particularities of the fiscal policy and debt position of Ukraine’s government, the author develops the proposals, aimed at strengthening the fiscal sustainability of Ukraine with simultaneous application of the anti-crisis potential of fiscal policy.