Discretionary component of fiscal policy in Ukraine

Abstract

In the article author sets a goal to assess cyclically adjusted budget balance (CAB) in Ukraine and employ this indicator for analysis of fiscal policy cyclicality. Parameters needed for assessment of CAB are estimated with application of VECM approach. Results obtained lead to conclusions about procyclicity of fiscal policy in Ukraine accompanied with significant internal lags, what is confirmed by estimates with usage of alternative government discretionary fiscal policy measurements.