Mid-Term Budget Planning in Ukraine

Some elements of the mid-term budget planning were introduced in Ukraine back in 2010. However, it failed to bring tangible results for the budgeting process. By 2017, the budgeting process was still inertial. There was a lack of resources to implement the reforms declared in the government’s programs.

In June 2017, for the first time ever, the government submitted a Mid-Term Budget Statement and thus showed its commitment to a more thorough and full implementation of the mid-term budget planning system (hereinafter referred to as the MTPS) for 2018-2020. Following numerous comments from the Budget Committee, the document was never considered by the parliament. To further ensure the medium-term budgeting and to determine the place of a budget resolution in the budget process, the Ministry of Finance submitted a draft law amending the Budget Code. If the changes are adopted by the end of 2018, the 2019 State Budget will be based on the Budget Declaration for 2019-2021.

The objective of this analytical note is to answer the question on how to effectively implement the elements of the MTBP system to achieve an optimal redistribution of public expenditures between different budget programs and to make better use of taxpayers’ funds, and to receive high-quality public services. The analysis of the experience of implementation and development of mid-term planning in the CEE countries (in particular, in Romania) will allow one to understand what results and in what perspective can be expected from the MTBP in Ukraine.