№ 6/2017

Fìnansi Ukr. 2017 (6): 7–25

BUDGET POLICY

BOHDAN Tetiana ¹

¹NGO “Growford Institute”
OrcID ID : https://orcid.org/0000-0002-6133-5336

Medium-term budget planning in ukraine: systemic essence, functions, structural elements

The article reveals the essence and functions of the medium-term budget planning in the system of state economic governance and generalizes national legislative framework on this issue. The requirements for medium-term budget plans in the EU countries are systematized according to the Council Directive and the European Commission guidelines. To ensure the viability of the system of medium-term budget planning, the following measures are proposed: to establish clear expenditure limits for spending units, to make these limits binding rather than indicative, to integrate annual budgets into the medium-term fiscal framework, to extend the system of medium-term planning to the general government sector as a whole, to set up a monitoring system and clear procedures for adjusting budget plans in case of disturbances, as well as to estimate (forecast) fiscal implications of the current political decisions over the medium-term. Particularities, strengths and weaknesses of medium-term budget plans in Austria, the United Kingdom, Netherlands and new member states of the EU are analyzed. The author estimates the quality of medium-term budget planning, underling its essential role for the country’s preparation for EU accession. The urgency for setting up unified fiscal framework for the different levels of government and political will for combination of various sectoral initiatives within a single state plan is shown on the example of Latin American countries. Based on the international best practices and experiences of other countries, the author draws policy recommendations related to the introduction of medium-term budget planning in Ukraine.

Keywords:medium-term budget planning, fiscal frameworks, budgetary legislation, expenditure limits, medium-term plans in the EU.

JEL: H5, H30, H61.

BOHDAN T. . Medium-term budget planning in ukraine: systemic essence, functions, structural elements / T. . BOHDAN // Фінанси України. - 2017. - № 6. - C. 7-25.

Article original in Ukrainian (pp. 7 - 25)

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