Government approves Roadmap for Reforming the Public Finance Management System

On 22 December, the Government approved the draft Roadmap for Reforming the Public Finance Management System by a protocol decision. This ensures the implementation of the structural benchmark provided for in the Memorandum of Economic and Financial Policies with the IMF.

This roadmap is a framework document that has been developed taking into account the recommendations of the World Bank and the IMF, leading European practices, as well as the needs for rapid recovery and post-war reconstruction.

The purpose of the Roadmap is to set the context, vision, basic principles and directions for building an integrated, sustainable and effective public investment management system that ensures that investment projects are planned based on strategic priorities and a medium-term budgetary framework, selected in accordance with unified and transparent procedures and clear criteria, and implemented within the planned timeframe and funding.

In particular, the Roadmap provides for:

• making decisions on public investments within the framework of strategic and medium-term budget planning and establishing a Strategic Investment Council;

• extending public investment management procedures to all investment projects related to reconstruction, recovery and development through a single definition of a public investment project;

• unification of approaches to the evaluation and selection of public investment projects, regardless of sources and mechanisms of financing, and the creation of a single project portfolio to ensure prioritisation and access to financing;

• the Ministry of Finance assessing the financial sustainability of public investments and strengthening the management of relevant fiscal risks;

• creating a unified IT ecosystem based on the updated methodological framework for public investment management;

• building public investment management capacities at the central and local levels.

Subsequently, the Ministry of Finance of Ukraine, with the participation of the Ministry of Economy of Ukraine, the Ministry of Justice of Ukraine, the Ministry of Infrastructure of Ukraine and other stakeholders, was instructed to develop and submit to the Cabinet of Ministers an action plan for the implementation of the Roadmap by 1 June 2024.

For more information on the Roadmap for Reforming the Public Finance Management System, please follow the link.