Ukraine to Implement Mid-Term Budget with Stablity Policy
OREANDA-NEWS. January 16, 2012. The Ministry of Finance of Ukraine has held its Collegium meeting having summarized the 2011 performance outcomes and outlined perspective strategic plans.
First of all, Finance Minister Fedir Yaroshenko said that 2011 was focused on the tasks identified by the National Action Plan to implement the program of economic reforms of the President. Among them, one should note the below achievements:
- stable public finance management system has been created;
- sustainable economic growth is provided for;
- the state guarantees that its social commitments will be fulfilled.
Along with that, Minister of Finance identified most important measures implemented last year:
- adopting the 2012 state budget;
- introduction of medium-term forecasting;
- settlement of state and local debt problematic issues;
- introduction of risk management in the provision of government guarantees;
- optimization of budgetary consolidation programs and state programs number;
- first-reading adoption of draft laws on the Future Generation Fund and State Regional Development Fund.
- further harmonization and implementation of the Tax Code of Ukraine. 176 legal acts have already been adopted;
- implementation of key measures to improve the business;
- continuing the tax service reform;
- protecting the rights of creditors and consumers of financial services;
- measures to improve disclosure on the stock market with a view to attract investors;
- introduction of international financial reporting standards for financial market players;
- improving the regulation and control of the target and mortgage bonds.
Given that modern challenges require the executive authorities to think systemically – anticipate, respond and act proactively, the Ministry of Finance and the authorities that it directs and coordinates should be innovators in implementing the innovative principles of public administration and implementation of systemic reforms.
This is the reason why the Ministry of Finance has developed and put into practice the program called Innovation-Based Renewal of the Public Finance System of Ukraine that is fully coordinated with the President’s Economic Reform Program, based on the management’s systemic principles and aimed at raising the efficiency, predictability and transparency of public finances, and transforming them into a driver of the economic development in Ukraine.
Speaking about various budgetary policy models that have been applied since the start of the new Government, Fedir Yaroshenko said that they were different, but they clearly take into account current economy state and prospects.
As for the breakdown, the budgeting is as follows:
- the 2010 budget was drafted and implemented under the "patience economy" slogan;
- 2011 budget was described by the transition "from the patience economy to stabilization and development";
- the 2012 one is built on the ideology of transition "from stabilization and double dip recession resistance towards sustainable development."
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