Abstract for: Dynamics of Fiscal Space and Debt Sustainability in Macrosystem

We suppose the S – Shaped form of our debt limit. We also assume the existence of substantial exceeding of the stable long – run public debt ratio in Ukraine. That is why our core questions are: “What are the reasons, which underly debt limit capacity issues and their non - linearity?” The following questions proceed from, caused by ambiguity of the previous one: “Why the extra high level of the sovereign debt in Ukraine has not been eliminated yet, despite the awareness of state authorities and scientists in the problem?” and “How to rise primary surplus in response to rising debt service to stabilize debt/GDP ratio?”