Public Finance Management (PFM) stabilization is one of the main reforms of the Government of Ukraine (GoU). PFM is a key component of many changes needed to ensure macroeconomic stability and sustainable economic growth. PFM reform implementation is defined by national strategies, as well as international obligations f.e. 2016 Priority Action Plan of the GoU, Coalition Agreement of the Ukrainian Parliament, UA-EU Association Agreement, International Monetary Fund Program etc.
«Public Spending in Ukraine: How to Achieve More at Fewer Costs?» – is one of the main questions that were considered during the conference with the same name, which was held in the framework of Ukrainian-German cooperation on December 12, 2016 at the President Hotel.
The purpose of the event – public discussion of PFM reform and the effectiveness of public expenditures in such a vital areas for everyone as education and health care, as well as to emphasize the importance of further reforms Ukraine in result-oriented budgeting (program budgeting).
Representatives of the Parliament, the GoU, the Accounting Chamber of Ukraine, civil society, scientists, mass media and international community attended the event as speakers and participants. The important guests of the conference are Deputy Minister of Finance of Ukraine Sergiy Marchenko, Deputy Health Minister of Ukraine Pavlo Kovtonyuk, as well as former Finance Minister of New Zealand Ruth Richardson.
The Guests were welcomed by Daniela Bergelt, Head of Cooperation at Embassy of the Federal Republic of Germany, Kyiv. In the speech, Mrs. Berhelt stressed the importance of a transparent, clear and realistic budget and of further PFM reform in Ukraine.
The first panel discussion was devoted to the international experience exchange and discussing the possibility of its use in Ukraine. Günter Weiland, GIZ expert, Head of the Accounting and Controlling Division, State Chancellery of Hesse, Germany, made a presentation on „Indicators in the performance based budgeting as an instrument for achieving political goals, experience in Germany“. At the end of the presentation Mr.Weiland concluded: “Program Budgeting does not bring more money to the state fund, and cannot overcome the debt crisis in many countries. However, in our opinion, it is a suitable tool for effective and targeted implementation of policy goals.
”During the second panel discussion the results of analyzes of budget requests of the Ministry of Education and Ministry of Health of Ukraine were presented with discussion of effectiveness of public spending by ministries with conference participants. The analysis were conducted by the experts of the Center for Economic Strategy (CES) Maria Repko and the Institute for Economic Research and Policy Consulting (IER) Oleksandra Betliy.
– key spending units (KSUs) will use research results in the preparation of budget requests in the next budget year,
– KSUs formulate budget requests in accordance with the political objectives that must be achieved, with availability of adequate resources. Hence, it will ensure accountability and quality of public services for the population.
The event was co-organized by the Reanimation Package of Reforms (RPR), the Centre for Economic Strategy (CES), the Institute for Economic Research and Policy Consulting (IER) and the “Support to the reform of public finances” Project realized on behalf of German and UK Governments by the federal enterprise Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The conference was supported by the Ministry of Finance of Ukraine.
The “Support to the reform of public finances” Project is realized on behalf of German and UK Governments by the federal enterprise Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
As a federal enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development. Germany’s international cooperation with Ukraine focuses on sustainable economic development, energy, democracy, civil society, public administration and decentralization as well as on the HIV and AIDS prevention, and helps to foster its crisis response capacity