OREANDA-NEWS. October 07, 2013. State finances have strategic importance for the economy, providing regional development, business support, and their potential, in turn, is the basis for economic and social development of Ukraine.

Progress in the reforming of the state financial management system is one of the key directions of the state policy of the Government.

Within bilateral cooperation between Ukraine and the European Union the development of the field of state finances is an important component and prerequisite for the signing of the Association Agreement between Ukraine and the EU in November 2013.

Activation of the work and cooperation in the field of state finances between Ukrainian and European counterparts began in 2012. Thus, by the results of the joint work of sides was developed a Concept of the development of system of state financial management and approved by the Cabinet of Ministers of Ukraine on September 3, 2012 № 633 -p.

The aim of this concept was the identification of directions of development of system of state financial management for further improving its functioning by improving legal regulation of its complex components and enhancing coordination of public authorities that carry out state policy in the field of public finance.

The next step was the drafting of the Strategy of development of state financial management system in accordance with the provisions of the Priority Action Plan for Ukraine's integration into the European Union for 2013.

By the results of the meetings and deliberations of the Working Group, formed by representatives of the Ministry of Finance and other concerned authorities and representatives of the European Union and the World Bank, and after giving all necessary advices from the experts of the European Union program SIGMA, which also were engaged in the development of the Strategy, on August 1, 2013 the Strategy of development of state financial management system was approved (Order of the Cabinet of Ministers of Ukraine № 774-r).

The strategy has identified directions of the state financial management system for the period up to 2017 by improving the relevant legal regulations and institutional framework of public finance.

Effective management of state finances is the foundation of sustainable development and guaranteed fulfillment of social obligations to citizens.