Since June, 14 the Cabinet of Ministers introduces a new system of budget planning in the midterm. This became possible by the adoption of the draft Budget Resolution until 2020. The transition to the new planning system will enable to generate the branch development programs for the future 2-3 years, which is the international practice.
The document provides for the economic growth in Ukraine by 4%, by 2020 reducing inflation to 5%, reducing the budget deficit to 2% and reducing the share of debt to 55% of GDP.
The Prime Minister of Ukraine Volodymyr Groysman noted that laid macroeconomic indicators reflect the base level which can be over fulfilled – in the case of making effective decisions and achievement of the necessary depth of transformations in the country. However, the reform priorities are the continuation of the decentralization and strengthening of local budgets, raising social standards, stimulation of industry and job creation.
As for local governments, according to the Vice Prime Minister –the Minister of Regional Development, Construction and Housing of Ukraine Hennadiy Zubko, thanks to financial decentralization, which began in 2015 with adoption of the strategy of “Main directions of budgetary policy for 2018-2020”, the local communities also have got the opportunity to plan their budgets for the next three years.
“In 2017 the size of the local budget is 170 billion UAH according to the plan, for 2018 – it is planned 248 billion UAH, the budget increase is expected for another 154 billion UAH,” – said Hennadiy Zubko.
The Budget Resolution until 2020 was developed by the Ministry of Finance of Ukraine. It is expected that within three days the text of the document will be finalized and submitted to the Verkhovna Rada.
Source: The Government Portal