Introduction and implementation of the medium-term budget planning system in Ukraine: the experience of Germany

Abstract

The need for effective budget planning in Ukraine in order to ensure effective and transparent implementation of the budget process generates the necessity for scientific understanding of the transfer of European practice of medium-term budget planning (MTBP) in domestic realities. Despite numerous developments of scientists concerning the possibilities of improving the procedure of medium-term budget planning (MTBP) in Ukraine, it is important to identify the features of its implementation based on the experienceof developed countries, which will allow us, taking into consideration the obtained results, to deepen further scientific and applied aspects of improving the medium-term budget planning system in Ukraine, to increase the efficiency of its implementation. One of such example is Germany's experience in introducing and implementing the medium-term budget planning. The main purpose of the investigation is the analysis of the budget planning in Ukraine, particularly, the factors influencing it, to determine the opportunities of the application of Germany’s experience concerning the introduction and implementation of the medium-term budget planning. The main advantages and disadvantages of using the MTBP procedure over the traditional (annual) budget are summarized in this paper. Factors of the MTBP development in Germany and other EU countries, particularly: effectiveness of regional practice; post-crisis period of national economies and the world economy; purposefulness of countries to the EU integration; significant amounts of public debt; implementation and enforcement of Directive 2011/85/EU in 2011 are established. Combination of all five preconditions available in Ukraine should ensure the accelerated development of the MTBP. It is determined that the use of German experience for the improvement of medium-term budget planning in Ukraine will contribute to rational distribution of budget resources between the budget system levels, increasing the level of predictability of the state budget policy, improving the macroeconomic balance, fiscal discipline and investment attractiveness of the country. It is noted that the non-fulfillment of the planned indicators of the state budget in Ukraine is due to the inefficient organization of the MTBP and the influence of macroeconomic environment factors.

World Experience of Tax and Fees Management

“…Проблемам податкового забезпечення суспільно необхідних видатків держави присвячені роботи багатьох вітчизняних та зарубіжних учених: Д. Алонсо [16], В. Виговської [9], О. Гонти [1], К. Григораш-Ічім [18], І. Долозіної [29], М. Дубини [6], І. Косач [13], О. Лаговської [22], В. Маргасової [23], Т. Савчук [15], О. Урікової [14], К. Шапошникова [24; 25], С. Шкарлета [26; 27], Н. Холявко [20; 28], В. Худолей [21] та інших.…”