Strategic approach to recovery: Denys Uliutin discusses public investment management system at the International Cohesion Forum – Creating the Future
First Deputy Minister of Finance of Ukraine Denys Uliutin participated in the International Cohesion Forum – Shaping the Future, organised by the Ministry for Communities and Territories Development of Ukraine with support from international donors.
Representatives from the Government, the Verkhovna Rada, civil society organisations, and international partners discussed the application of a strategic approach to community recovery and the need to enhance the efficiency of using limited resources for reconstruction.
During a panel discussion, Denys Uliutin outlined the reform of Public Investment Management (PIM), which is set to form the foundation for community recovery and development.
“For the first time, the Government has established a unified, systematic mechanism for prioritising and selecting investment projects, replacing 18 different types of investment financing with varying procedures, allocation methods, and fund usage rules. This previous format was complex and inefficient, creating numerous challenges. Now, we have transitioned to a single approach to public investment management, which ensures predictability and increases the efficiency of limited financial resources,” said Denys Uliutin.
A total of 92 projects from the Single Project Pipeline have already been selected for funding from all state budget resources. These projects span healthcare, social protection, education, transport, energy, and other sectors. The PIM system, made mandatory following amendments to the Budget Code, covers all projects implemented with public funds or supported by international partners.
“We are moving from emergency responses to the immediate challenges of the full-scale war towards investing in development across various sectors. A unified approach to managing capital expenditures allows us to shape a vision for our future,” emphasised the First Deputy Minister of Finance.
The new system will not only streamline budget planning but also strengthen the confidence of donors and citizens in the recovery processes. Additionally, the integration of PIM with local and sectoral development strategies ensures alignment of priorities at all levels.
According to Denys Uliutin, the PIM reform is crucial not only for the Government, as it ensures the effective implementation of state policy in recovery, but also for communities. The new approach to capital investments enables the prioritisation of development based on the needs of residents in specific territories.
Background
Public Investment Management (PIM) is a key component of the public finance management system. Effective public investments are a critical prerequisite for achieving and sustaining economic growth, meeting the demand for public services, and improving the quality of human capital. Investments in public infrastructure – both economic and social – are a significant factor in enhancing productivity and competitiveness, reducing regional development disparities, and fostering new economic sectors with additional job opportunities.
The PIM reform, developed in collaboration with international partners, entails clear definitions and strategic planning of public investments over the medium term, with maximum integration into the budget process; unified approaches to the preparation, evaluation, and prioritisation of public investment projects, regardless of funding sources or mechanisms; digitisation of processes; and the establishment of expertise centres as key tools to enhance the capacity of authorities at all levels in managing public investments.