EU-UA strategic dialogue on public finance management (PFM) reform

Kyiv, December 3, 2019

On December 3d, Ukrainian representatives of the Ministry of Finance, the State Fiscal Service and the State Customs Service together with the EUDEL officials had a strategic policy dialogue on Public Finance Management reform and its section coordination. This event is held as a comprehensive effort of the European Union to support Ukraine’s public sector governance so the progress of reforms as well as their substantial changes would be ensured.

Oksana Markarova, Minister of Finance of Ukraine, opened the discussion with presenting the essence of the PFM reform strategy and governance. The main three issues that occurred on the dialogue are the adoption of IT vision/strategy for PFM area; strengthened PFM donor coordination and the update of the PFM Strategy and Action Plan according to the new Government priorities and results of the recent PEFA exercise.

SerhiyVerlanov, Head of the State Tax Service of Ukraine, continued the conference by discussing the ongoing and planned legal initiatives in tax area: establishing a legal entity in State Tax Service; adopting IT and HR strategies; abolishing tax police and installing the new Financial Investigation Service instead; making an updated reform strategy public.

Maksym Nefyodov, Head of the State Customs Service of Ukraine, presented the activities of customs area which include making the new State Customs Service operational; updating reform strategy and raising the public awareness of it; adopting IT and HR strategy; establishing the Single entity; implementing the customs legislative provisions (Authorised Economic Operator, Common Transit, intellectual property rights enforcement).

Suсh officials of the Ministry of Finance of Ukraine as VolodymyrLozitskyi, VasylShkurakov and KostyantynVashchenkotalked about the budget process, preciselyaboutits planning and spending reviews; cash/liquidity/debt management and the organizational reform in the Ministry of Finance (including HR and IT modernization). On this matter the budget implementation and budgetary oversight were depicted by PavloKukhta, First Deputy Minister at Ministry of Economic Development and Trade of Ukraine as well as the external audit was presented by someone who is not on the list, ACU. The EUDEL officials Stefan Schleuning, Head of Operationsconcluded the strategic policy dialogue and gave the comments on each issue.

The Public Finance Management Programme for Ukraine (EU4PFM) has its overall objective to improve Public Finance Management in Ukraine as well as public services and the business climate. The specific programme implemented by Lithuania’s CPMA supporting tax and customs reforms and capacity building in Public Finance Management aims at (i) further development of a modern, efficient and fair revenue collection system and (ii) enhancing organizational capacities of PFM institutions, precisely in human resource management, anti-corruption and implementing IT solutions. The overall budget of the programme is EUR 29.5 mln (including the IT Fund) with the implementation period of 4 years.

Central Project Management Agency (CPMAfounded in 2003 by the Ministry of Finance of the Republic of Lithuania, has more than 15 years of experience in management and implementation of various EU and other international donors’ programmes.