Ukraine: Technical Assistance Report-Strengthening Budget Formulation and Fiscal Risk Management

International Monetary Fund

No 2019/360, IMF Staff Country Reports from International Monetary Fund

Abstract: This Technical Assistance Paper on Ukraine discusses that implementing strategic planning and a medium-term budget framework (MTBF) is a core component of Ukraine’s Public Financial Management (PFM) reform strategy. A pilot MTBF conducted in 2017 formed the basis for amendments to the Budget Code in December 2018, which firmly establish a MTBF as the basis for budget preparation. The amendments also establish a legal basis for related reforms, including regular spending reviews and monitoring and managing risks to public finances. The report also highlights that a central margin should also be established to accommodate budget volatility and meet the costs of genuinely urgent, unavoidable and unforeseeable expenditure pressures that may arise. In order to reinforce spending discipline, the margin should be tightly controlled, centrally managed and transparently reported. Strategic planning should also be improved to provide a stronger basis for integrated policymaking, strategizing, planning and budgeting. Creating a robust strategic planning system would assist in this regard.

Keywords: ISCR; CR; expenditure ceiling; State budget; budget volatility; KSU budget submission; KSU ceiling; expenditure limit; aggregate expenditure envelope; KSU capability; KSU baseline; Budget planning and preparation; Fiscal risks; Medium-term budget frameworks; Public expenditure review; Global (search for similar items in EconPapers)
Pages: 47
Date: 2019-12-06
New Economics Papers: this item is included in nep-cis, nep-mac and nep-rmg
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