The Ministry of Finance asks the Parliament to vote for amendments to the Budget Code enabling the launch of mid-term budget planning in this year (draft law No. 6161)

The Ministry of Finance asks the members of Parliament to vote for amendments to the Budget Code which make it possible to launch mid-term budget planning in this year already (draft law No. 6161). This is one more crucial step in the budget reform implementing a new effective mechanism for the management of the budgetary process.

The model of mid-term budget planning elaborated by the Ministry of Finance is based on best experience and international practices as well as takes into account recommendations of the IMF and the specifics of the budgetary system and legislation of Ukraine.

The model of mid-term budget planning sets forth the prolongation of the budget planning period from one to three years. The key element of the mid-term budget planning system will be the Budget Declaration for a mid-term period. At the same time, the law on the state budget is still adopted for one year.

“The mid-term budget planning model which we elaborated lays the ground for the future-oriented development of our economy. Predictable budget policy and forecasting developments for several years ahead will let us implement comprehensive systemic reforms, increase the attractiveness of Ukraine for investors and improve the business climate”, First Deputy Minister of Finance Oksana Markarova said.

Transition to mid-term budget planning in Ukraine shall result it:

• predictable and well-balanced budget and tax policy;
• implementation of long-term development priorities;
• implementation of objectives set by the Mid-Term Priority Action Plan of the Government for the period till 2020;
• higher attractiveness of Ukraine for investors and improved business climate.

The Ministry of Finance hopes that the members of Parliament will be working diligently and asks them to vote for the draft law No. 6161.