Parliament of Ukraine Adopted Amendments to the Budget Code to Ensure Predictability of Budget Policy and to Strengthen Debt Sustainability

On July 27, 2023, the Parliament of Ukraine adopted draft amendments* to the Budget Code of Ukraine to ensure budget policy predictability and strengthen debt sustainability.

With adoption of this Law the Government's fulfills obligations under the four structural benchmarks of the Memorandum on Economic and Financial Policy as of June 19, 2023.

The Law introduces a number of amendments to strengthen the role of the Ministry of Finance as the body responsible for the balance and validity of budget indicators when amending the Law on the State Budget of Ukraine.

In addition, the provisions of the Budget Code on the development of the Medium-Term Public Debt Management Strategy and the preparation of the Budget Declaration as a medium-term budget planning document were restored as of January 1, 2024, and the requirements for the maximum amount of state guarantees were established for 2023.

The predictability of the budget policy and strengthening of debt sustainability are among the key conditions for the IMF's four-year Extended Fund Facility (EFF) Program for Ukraine.

Performance of the Government's commitments to amend the Budget Code of Ukraine will contribute to the successful implementation of the Extended Fund Facility (EFF) four years Program for Ukraine, which totals USD 15.6 billion (SDR 11.6 billion).

The EFF program aims to support fiscal, external, monetary and financial stability, as well as to support the ongoing gradual economic recovery.

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*Draft Law of Ukraine "On Amendments to the Budget Code of Ukraine to Ensure Predictability of Budget Policy and to Strengthen Debt Sustainability" (No. 9346-1 of June 15, 2023)