The Ministry of Finance appeals to the members of Parliament to vote for amendments to the Budget Code which make it possible to implement mid-term budget planning in Ukraine on the permanent basis and at all levels of the budget system (draft laws No. 8099, 8044, 8043). These draft laws from the Government are due to be put on vote at the Parliament today, on March 20.
What’s it about?
The mid-term budget planning model developed by the Ministry of Finance is based on the best experience and international practices taking into account the recommendations of the IMF and specifics of the Ukrainian budgetary system and legislation.
Mid-term budget planning is one of the priorities of the Government and the Ministry of Finance which is also agreed in the Coalition Agreement, Mid-Term Action Plan of the Government till 2020, Memorandum with the IMF and the Strategy of the Public Finance Management Reform for 2017-2020.
This is another very important step in the budget reform which will help implement a new effective mechanism for the management of the budget process.
The implementation of mid-term budget planning means that the timeline of budget planning is extended from one to three years. The key element of the mid-term budget planning system will be the mid-term Budget Declaration, while the state budget of Ukraine will still be prepared on the one-year basis.
The innovations of the prepared draft laws in regard to mid-term planning at the central level also include the update of the budget calendar, extension of the budgetary regulations, alignment between strategic and budget planning, implementation of three-year local financial plans etc.
What’s the benefit?
Creation of the legislative framework for mid-term budget planning will establish financial basis for strategic initiatives, which will significantly impact the discipline of the budget process participants and make them set clear priorities in the implementation of the reforms within the financial capacities of the state budget.
Also, the Ministry of Finance will ensure a predictable budget policy which will help regain the trust of citizens to the state and enable business effectively plan its operations.
The Ministry of Finance expects the Parliament to work productively and appeals the members of Parliament to vote for the draft laws No. 8099, 8044 and 8043.