The Verkhovna Rada of Ukraine passed two draft laws that enable the Ministry of Finance to implement a three-year budget planning process. It will help the government have three year visibility on the and implement structural reforms as well as raise the level of the government’s accountability and fiscal discipline.
“This critical public finance reform will enable us to be not only prudent but to predict expenses for the upcoming 3 years. Now we will be much better at managing our debt and fiscal risks,” said acting Minister of Finance of Ukraine Oksana Markarova.
The draft laws establish a strategic planning process that takes into account macroeconomic forecasting, impose expenditure ceilings on government entities, and set up an improved methodology for fiscal risk management.
According to the acting minister, moving beyond the annual budget planning will allow the Ukrainian government to implement much-needed structural reforms in healthcare and education.