PUBLIC DEBT AS AN INSTRUMENT OF AGRICULTURAL DEVELOPMENT

Abstract

Financial balance in the public sector represents the relationship between public expenditures (meeting public needs) on the one hand and public revenues (funds to meet related needs) on the other. This relationship is primarily reflected in meeting the needs of society. Fiscal action on economic development is reflected in the mobilization of accumulation potential, in the stimulation of technical progress and the application of the results of scientific research, in the development of agriculture and the application of new knowledge. There is a consensus that budget expenditures play a significant role in boosting economic growth. It is necessary to point out that every obligation of the state is not a public debt, and from that aspect it is necessary to make a connection between the public loan and the public debt. In order to meet the growing public needs than state revenues, the necessary funds are obtained from the public loan.