Ministry of Finance and IMF discuss progress on budgetary reform and next steps for improving budget planning

From 8 to 12 December, a Ukrainian delegation led by the First Deputy Minister of Finance of Ukraine, Roman Yermolychev, participated in the work of the International Monetary Fund’s technical mission on public financial management, which took place in Vienna, Austria.

During the meetings, the parties discussed Ukraine’s progress in implementing budgetary reform as part of fulfilling obligations under the IMF’s Extended Fund Facility (EFF) Programme. Particular attention was paid to the European integration aspect of the reform and the adoption of best practices from OECD countries in the field of budget management.

Among the key issues were the application in the current budget cycle of new methodological approaches to budget planning that comply with the requirements of European Union legislation. In particular, discussions focused on calculating baseline expenditure volumes and determining the cost of new state policies.

IMF experts gave a positive assessment of the new budget planning methodology developed by the Ministry of Finance of Ukraine, as well as the results of its practical application. The mission also discussed further steps to improve the budget planning system and received expert recommendations from the Fund.

“The introduction of modern methodological approaches to budget planning is an important element of the reform of public financial management. They ensure greater transparency, predictability, and alignment of the budget process with EU and OECD standards. The positive assessment from the IMF confirms that we have chosen the right direction and the next steps within the budgetary reform,” noted Roman Yermolychev, First Deputy Minister of Finance.

The Ministry of Finance of Ukraine continues close cooperation with the IMF in order to consistently implement reforms in the area of public financial management and fulfil obligations under the EFF Programme.