Budget forecasts at the local level are to be restored: the Parliament has supported the draft law

The Verkhovna Rada has supported in the first reading a government bill to restore medium-term budget planning for local communities, especially in areas affected by military operations, which will allow them to forecast budgets for several years ahead and attract funding for economic development and social support. This was reported by UNN with reference to MP Yaroslav Zheleznyak and the card of the draft law No. 11131.

Details

"The Rada supported in the first reading No. 11131 the restoration of medium-term planning of local budgets (preparation of a forecast of local budgets for 3 years). It was voted 257 in favor," Zheleznyak said on Telegram.

According to the draft law, medium-term planning of local budgets is restored, but the exception is the temporarily occupied territories or territories where active hostilities are taking place.

The areas of use of local government balances are also being expanded, in particular, they can be used to repay accounts payable, equip IDPs' temporary accommodation facilities, co-finance from local budgets, and purchase government bonds with a maturity of more than one year.

Local councils will be able to provide financial guarantees not only for borrowing for investment projects, but also for refinancing loans for previously taken loans (in agreement with the Ministry of Finance).

Also, until 2030, local governments are allowed not to apply the provisions of the Budget Code regarding the total amount of local debt.

Recall

The government approved a draft law to restore medium-term budget planning for local communities, especially in areas affected by military operations, which will allow them to forecast budgets for several years ahead and attract funding for economic development and social support.