Modern state funding management ensures economic growth

State funds are of strategic importance for the economy, regional development and businesses. Their potential is the basis for the economic and social development of Ukraine, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

According to experts, achievement of progress in reforming state financial management is one of the key areas of the government policy.

The Cabinet of Ministers continues to reform state finances, by scheduling, among other things, introduction of restrictions on amount of internal public debt in foreign currency, reduction of certain tax benefits in 2013-2014, transition to taxation of real estate based on its actual value, and reducing the number of exceptions from general rules of state procurement.

Experts say it actually means adaptation of Ukrainian state funding system to requirements set by of the EU Directives. This applies to almost any section of state financial management.

For example, according to analysts, in tax area, the government shall pay attention to extending the tax base and eliminating tax benefits for individual companies or sectors.

Government analysts say the need for faster approach of Ukrainian state procurement mechanism to European standards, where the key role is played by a unified and structured state procurement system on principles of full transparency, openness, competition and non-discrimination.

Government analysts note the revitalization of work and cooperation in the field of state financial management between Ukraine and Europe, which was started in 2012. Following the joint work of the sides, a Concept of State Financial Management System Development was drafted and approved by Cabinet Resolution No 633-p on September 3, 2012.

The purpose of the Concept was to determine directions of the system development. The next step was drafting a Strategy of state financial management system development in accordance with First-Priority Action Plan of Ukrainian Integration into the European Union for 2013.

Following the meetings and discussions of the Workgroup formed by representatives from the Finance Ministry and other ministries and departments, as well as representatives of the European Union and the World Bank, and following all necessary consultations with experts of the EU Program SIGMA, who also participated in development of the Strategy, on Aug. 1, 2013, the Strategy of Ukrainian State Financial Management System Development (the Cabinet of Ministers’ Resolution No 774-p) was approved.