It is aimed at supporting state institutions in improving budget preparation, execution and control. It covers various aspects, including strengthening the capacity of the Ministry of Finance of Ukraine and other key spending units to carry out medium-term budget planning, as well as strengthening the capacity for program budgeting and expenditure reviews. In addition, efforts are aimed at bringing the Ukrainian accounting system in line with international standards. Finally, this component aims to strengthen the capacity of public internal financial control, including internal audit of public finances.

Procurement Component aims to support the ongoing development of Ukraine’s public procurement system by aligning it more closely with EU standards. This initiative focuses on strengthening the legal framework, enhancing institutional capacities, improving oversight mechanisms, and promoting professionalisation within the sector.

Component 3 “Revenue Mobilization” envisages strengthening the institutional and organizational capacity of the public financial management system in the implementation and implementation of a modern strategy to promote taxpayer compliance with tax laws; effective risk management; broadening the tax base, in particular by improving the exchange of tax information with other countries; harmonization of Ukrainian tax and customs legislation with EU legislation; and implementation of best international practices in the tax and customs areas. Component 4 “Horizontal Functions and Management” supports the public financial management system in Ukraine in developing and implementing modern methods of human resource management, including anti-corruption measures, adaptation and automation of work processes, and improved planning, implementation and monitoring of reforms.

External audit and parliamentary oversight