In Ukraine, fiscal rescue package, according to IMF estimates, was 4.3% of GDP, and this indicator lags by 1.5 times behind the average level in emerging market economies (6.7%) and by 6 times behind the level of advanced countries (27.7% of GDP). In Ukraine, additional government spending and tax relief for business as part of the fiscal rescue package amounted to 3.5% of GDP, which was slightly lower than in emerging market economies (4.2% of GDP). However, liquidity support measures in Ukraine were 0.8% of GDP and they were many times lower than in emerging market economies (2.5% of GDP), and lagged by an order behind the average of advanced countries (11.3 % Of GDP). In the global context, large fiscal actions have a more severe global economic contraction, greater job losses, and higher social costs. Fiscal support has also mitigated the adverse effects of the pandemic on private demand, private consumption, and employment. IMF experts have estimated that government spending and revenue actions since the beginning of the pandemic have mitigated the fall in global growth in 2020 by 2%. Many emerging markets, although with smaller bailouts, have benefited from the secondary effects of massive fiscal and monetary support for economies in developed countries. Such support has had a positive impact on global demand, eased global financial market conditions and reduced capital outflows from emerging markets. Although emerging market economies have provided smaller fiscal packages, on average, many have benefited from spillovers from massive monetary and fiscal policy responses by advanced economies. Such measures supported global demand, eased global financial conditions, reduced capital outflow in emerging markets.
Read more in the study of Dr. habil. Tatiana Bohdan “Transforming Public Finances: Global Processes and Challenges for Ukraine”.