Medium-Term Budget Planning in Ukraine: The Problems and Prospects for Implementation

Abstract

The article is aimed at disclosing and substantiating the peculiarities of the introduction and implementation of medium-term budget planning in Ukraine. Medium-term budget planning is defined as an approach to planning and managing public finances, which expands the horizon for the formation of budget policy for three to five years and allows to plan and forecast budget revenues and expenditures necessary for the implementation of strategic goals of the State budget policy in the medium term. The article considers the main functions of the medium-term budget planning system. It is noted that the European Union is assessing the development of medium-term planning, namely: the «Quality Index», which provides for the highest assessment according to five criteria. In Ukraine, medium-term planning accounts for about 65% of the expenditures of the national governance sector. Medium-term budget planning should become an important instrument for public finance management, which will not only allow to have a high-quality and sound financial plan for the medium perspective, but will also be the basis for the development of the State-based socio-economic policy. Both the advantages and the disadvantages of medium-term budget planning are considered, attention is also paid to the disclosure of factors that currently hinder the development of both the State itself and the mechanism of implementation of medium-term budget planning in Ukraine. The directions and measures that should be taken to ensure the development of medium-term budget planning in Ukraine are substantiated, as well as the positive consequences of the effective implementation and implementation of medium-term budget planning in the country are determined.

Keywords

• budget
• budget planning and forecasting
• budget process
• medium-term budget planning