At the meeting of the Government on February 8, the new Strategy for Public Finance Management for 2017-2021 was adopted. The Strategy had been developed by the Ministry of Finance.
Why is the new Strategy necessary?
Its implementation shall ensure sustainable economic growth and higher level of public services as well as set incentives for reforms in other areas.
The aim of the Strategy is the build-up of a modern and effective system for public finance management which can deliver proper public services, effectively accumulate resources and distribute them in line with the mid- and long-term state development priorities.
The new Public Finance Management Strategy includes the implementation of mid-term budget planning. It means that the budget funds shall be distributed according to the development priorities for 3 years and clear development goals shall be developed for the next 5 years as well as key performance indicators for the Strategy implementation.
The Strategy consists of 4 chapters:
• Compliance with the overall budgetary and taxation discipline;
• Increase of the effectiveness of resources distribution;
• Steps to ensure the effective execution of the budget;
• Increasing transparency and reporting.
In the next 4 months the Government will be developing the national action plan for the Strategy implementation at all levels. The Public Finance Management Strategy shall ensure transparency and proper reporting at all public institutions and shall enable citizens to exercise direct control over budget planning and distribution.
• The Public Finance Management Strategy for 2017-2021 is fully compliant with the goals and objectives set in the draft of the mid-term Priority Action Plan of the Government for the period till 2020;
• The importance of the Public Finance Management Strategy also refers to the obligations of Ukraine towards the EU and the IMF.