Rada approved the introduction of three-year budget planning

Рада одобрила введение трехлетнего бюджетного планирования

Parliament approved the second reading of bill No. 8044 “On amendments to the Budget code of Ukraine (on the legal basis for the implementation of the medium-term budget planning)”. The document was supported by 238 MPs.

About it reports RBC-Ukraine.

The document creates the legal basis for the introduction of medium-term budget planning.

In particular, it is envisaged to introduce a Budgetary Declaration as a document of strategic state planning, which will define the main principles of the budget policy for the medium term – instead of the Basic directions of budgetary policy for the planning and Forecast of the state budget for the next scheduled two budget periods that will be discarded.

According to the document, the budget Declaration will contain, in particular, aggregate expenditures ceilings and ceilings of expenditure main managers of means of the state budget, goals and output indicators of their activities (actual and anticipated for the medium term), overall assessment of fiscal risks.

The law establishes fiscal rules, in particular, the budget deficit and the volume of provision of state guarantees, the strategy of public debt management on medium term, the list of cases clarify the ceiling defined by the Budget Declaration, in the preparation of the draft budget and the Budget Declaration for the next period.

Also provides for the update of the budget calendar, namely the establishment of terms of preparation of Budget Declaration and information required for its compilation.

The increased availability of information on the budget

The budget code is supplemented by provisions to improve availability of information about the budget, in particular with regard to:

public reporting on the implementation of the budget programs, including the achievement of their effective performance;

disclosure of the goals and targets of the result of the activities of the main managers of budgetary funds for the fiscal period and the results of evaluation of efficiency of budget programs.

Also, the bill proposes that when considering the Budget Declaration in Parliament, the main managers of budgetary funds report on the goals and targets of the result of their activities in their respective areas.

We will remind, on October 18, the day of the adoption of the budget for 2019 in the first reading as a basis, Rada adopted in first reading the law on introduction of three-year budget planning.

Note, in late January, the Cabinet approved a bill on amendments to the Budget code, which provides for the introduction of a medium term budget planning on an ongoing basis.

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