Government approves mechanism for allocating funds from the state budget to finance public investment projects from the Unified Portfolio of Public Investment Projects

Ministry of Finance of Ukraine, posted 01 March 2025 10:42

On 28 February 2025, the Cabinet of Ministers of Ukraine adopted the Resolution "Some Issues of Public Investment Distribution".

The document provides for the introduction of a mechanism for allocating funds from the state budget of Ukraine for the preparation and implementation of public investment projects. These projects are prioritised for funding by the state and international partners and are included in the Unified Portfolio of Public Investment Projects approved by the Strategic Investment Council. The Unified Portfolio provides for the prioritisation of investment projects and is formed in accordance with their importance for the strategic goals of the state and the regional needs of communities.

The resolution approved by the Government also provides for the establishment of an Interagency Commission that will allocate funds to finance investment projects from the state budget or with state support. The Interagency Commission will be chaired by the Minister of Finance of Ukraine and will include representatives of the Ministry of Finance, the Ministry of Economy, the Ministry for Communities and Territories Development, the Ministry of Health, the Ministry of Education, the Ministry of Energy, the Ministry of Digital Transformation, the Ministry of Culture and Strategic Communications, the Ministry of Social Policy, the Ministry of Internal Affairs, the Ministry of Foreign Affairs, the Ministry of Justice, the Ministry of Environmental Protection and Natural Resources, the Ministry of Agrarian Policy, the Ministry of Youth and Sports, and the Ministry of Veterans Affairs.

The adoption of this resolution is envisaged by the Roadmap for Public Investment Management Reform for 2024-2028 and the Memorandum of Economic and Financial Policies with the IMF dated 4 October 2024. Public investment management is a step towards increasing the efficiency and transparency of the use of public funds aimed at building and modernising the country's infrastructure. Thanks to the timely adoption of the methodological framework for public investment management, the strategic priorities of the state will be aligned with budget planning, and the budget process for 2026-2028, which has already started, will be successfully implemented.

The improvement of the public investment management system is part of the work that the Government of Ukraine and the Ministry of Finance in particular are doing as part of the public investment management reform launched in 2024. All stages of the reform are set out in the Roadmap and Action Plan developed by the Ministry of Finance. The reform of public investment management will ensure transparency and accountability of data on the allocation of budget funds and investment projects in Ukraine.

The Strategic Investment Council has already approved the Unified Portfolio of Public Investment Projects, which includes 787 national and regional projects with a total value of UAH 2.6 trillion. The total resource of the State Budget of Ukraine for financing public investment projects in 2025 is UAH 224.2 billion. Of this amount, UAH 186.8 billion will be received from international financial organisations and donors in the form of grants and loans, including those under government guarantees.