Key priorities of the state budget for 2017

8/31/16

On August 31, key priorities of the state budget for 2017 were presented at the Government’s meeting. The key areas of the new budget include defense and national security, decentralization, energy efficiency, education, salaries and pensions, overhaul of the roads and infrastructure. In regard to these priorities the Ministry of Finance is not only finalizing the draft state budget for 2017, but is also pursuing a systemic budget reform. The aim of the reform is to elaborate the budget of economic growth which shall deliver real benefits to citizens and business in Ukraine.

To make it possible, the Ministry of Finance is preparing a responsible and realistic budget for 2017 with all expenses balanced with revenues. This year’s approach has been changed itself: budgeting is now based not on expenses and spending requests, but on revenues and really available capacities. In this way, the Ministry of Finance is acting as a driver of reforms in many areas while changing funding approaches and increasing the spending efficiency. This shall contribute not only to a well-balanced budget, but also to reforms in other areas including education, healthcare and social welfare. These reforms should be focused on high-quality services instead of financing empty offices.

Based on the above principles, the Ministry of Finance is also implementing a midterm budgeting procedure, i.e. drafting a budget forecast for 2018-2019 and thus laying grounds for the economic development of Ukraine for the next two years. The aim of this step is to make the budget policy predictable and consistent, which should deliver a platform for the further social and economic development of Ukraine. Also, a predictable budget policy and making forecasts for several years ahead would enable systemic deep reforms, improve the attractiveness of the country for investors and improve the business climate. Accordingly, business activities could be planned in a more long-term run.

Now the Ministry of Finance is consulting with all relevant parties on how to balance the state budget for 2017, in order to decide jointly on the effective use of the budget funds and to cover all needs of the citizens.


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