The Verkhovna Rada on Thursday, December 7, adopted the law No. 8044 “On amendments to the Budget code of Ukraine (concerning the legal framework for the implementation of the medium-term budget planning)”, which envisages the introduction of three-year budget planning.
The document was supported by 238 deputies with the required minimum of 226 votes, reports “Interfax-Ukraine”.
The adopted law establishes the rule according to which the state and state-guaranteed debt cannot exceed 60% of GDP and budget deficit – 3% of GDP. In addition, state guarantees will not exceed 3% of the planned revenues of the General Fund of the state budget and limits of budget deficit in the state budget law cannot exceed the amount of the deficit in the Budget Declaration.
The document adopted by the Ministry of Finance is responsible for compiling the Budget Declaration, which defines fiscal policy for the next three years, and every year, together with the other main managers of means of the state budget, updates it and takes the corresponding project to the Cabinet before may 15. The government annually, not later than June 1, that its ruling approves updated Budget Declaration. Parliament, in turn, until July 15 to accept the draft resolution on the Budget Declaration, which is to take its note and/or endorse the recommendations of the Verkhovna Rada on budget policy.
Tool medium-term budget planning at the local level will be the local three-year financial plans. This law also provides a transition to program-target method, when the state finances not just the scope or direction and achieving results in each budget program.
The new order suggests that when considering the Budget Declaration in Parliament, the Ministers and heads of other authorities present their strategic objectives and will report on their achievements. The main category of assessment of efficiency of budget programs and activities of the budgetary funds will be public service.
Recall, 23 November the Verkhovna Rada adopted the law “On state budget of Ukraine” for the year 2019 with a deficit of 2,3% of the gross domestic product of Ukraine. In the course of finalizing the second reading of the income and expenditure budget was increased by 18 billion UAH. The Ministry of Finance has finalized and submitted the draft state budget for the second reading in Parliament on 20 November.
President Petro Poroshenko has demanded that the budget-2019 100% were provided with subsidies to those who really needs and savings subsitename the money was paid them on hand.