• Українською
  • Ministry of Finance: USD 4.3 billion financed for priority expenditures in first quarter of 2023 under World Bank’s PEACE in Ukraine project
    Ministry of Finance of Ukraine, posted 30 August 2023 17:18

    Under the PEACE in Ukraine project, international partners have already provided USD 4.3 billion to reimburse priority expenditures for the first quarter of 2023. Of these, more than 93% are grants from the United States of America.

    In addition, Ukraine received USD 15 million in grant aid from Finland and a loan of USD 272 million (EUR 222.3 million) from the World Bank.

    This is evidenced by the data presented in the analytical dashboard prepared by the Ministry of Finance to increase transparency and accountability of the use of external financing on State Budget expenditures in the first quarter of 2023 under the World Bank PEACE in Ukraine project.

    The purpose of the PEACE in Ukraine project is to partially compensate for State Budget expenditures, including social and humanitarian expenditures not related to the security and defense sector.

    In total, in the first quarter of 2023, UAH 171.9 billion (USD 4,7 billion) of State Budget expenditures were made that are subject to reimbursement by Ukraine’s international partners under the PEACE project. In particular:

    • UAH 105.7 billion (61.5%) – social sector expenditures, including assistance to 2 million internally displaced persons (UAH 18.6 billion), and housing subsidies (UAH 9.6 billion) to 1.9 million people;
    • UAH 25.8 billion (15%) – healthcare expenditures to pay salaries to more than half a million healthcare workers;
    • UAH 25 billion (14.5%) – expenditures in the education sector, including salaries for half a million secondary school teachers and 135,000 employees of higher education institutions;
    • UAH 8 billion (4.7%) – salaries for 57,000 rescuers of the State Emergency Service.

    “The financial support of partners under the World Bank’s PEACE in Ukraine project is crucial for the implementation of the state’s social and humanitarian obligations during the war, when the vast majority of the budget revenues are directed to the needs of the security and defense forces. At the same time, the Government of Ukraine’s absolute priority is to ensure the efficient, transparent and accountable use of donor funds. Therefore, the Ministry of Finance is working closely with the World Bank and USAID teams to ensure that every dollar of financial aid is used for its intended purpose. After all, the trust of our partners is our key asset in building effective cooperation,” Minister of Finance Sergii Marchenko emphasized.

    The Ministry of Finance of Ukraine (MoF) is the state authority responsible for the PEACE in Ukraine Project implementation. Jointly with the World Bank, the MoF ensures the transparency of funds provided by the development Partners. The MoF monitors the use of direct budgetary support from the US Government, together with Deloitte Consulting company, which is implementing the USAID SOERA Project. In cooperation with PriceWaterhouseCoopers Ukraine audit company, the MoF carries out a review according to agreed procedures to determine the eligibility of public expenditures of the Government of Ukraine in 2022 under the Project. The BDO audit company, commissioned by the MoF, audits special-purpose financial reporting. The audit of the PEACE in Ukraine Project also includes activities with the participation of the Accounting Chamber of Ukraine.

    To increase the transparency and accountability of the use of external financing, the Ministry of Finance has prepared an analytical dashboard containing detailed information on budget expenditures for the first quarter of 2023 under the PEACE in Ukraine project.

    Data on the PEACE project for 2022 is available at the link.