The role and functions of the state credit in implementation of the budgetary policy by the state (Resume)

M. Chincharauli

The essence, role and functions of the state credit are considered in the work. There are a lot of various opinions concerning the state credit, including critical ones.

In this connection, the analysis of this problem and search for the ways of solving it represent the main purpose of our article. Much attention is paid to consideration of one of the integral parts of the state credit – state loans. Besides, especially interesting are the two mutually antithetical approaches to determination of the role of loans in the state finances, which have become the subject of keen discussion in the recent years: these are both negative and positive properties of loans. The significance and results of the state credit’s use in implementation of the budgetary policy by the state are given in the article. The essence and functions of the state loans’ markets are considered. Attention is paid to such an important problem for the state as correlation of internal and foreign debts. Quite often covering of the budget deficit takes place at the expense of the budget’s additional revenues, and the state credit in particular, which is economically unjustified for the state. That is why this method should not be the only way of the budget’s financing.