Alternative to deposits: how hromadas can effectively use temporarily surplus funds from local budgets

In January, the Government decided to suspend the placement of temporarily surplus funds from the general fund of local budgets by the end of 2019. Appropriate changes were approved by the Resolution No. 53 taken by the Cabinet of Ministers of Ukraine on 23 January 2019 “On Amendments to the Placement Procedure for the Temporarily Surplus Funds of Local Budgets on Deposit Accounts in Banks”.

The mentioned initiative caused a certain resonance among separate heads of local self-government bodies. After all, with the placement of temporarily suplus budget funds, municipalities received additional revenues to local budgets in the form of interest paid by banks for their use. Thus, in 2018, the inflow to local budgets for placing temporarily surplus funds on deposit accounts amounted to UAH 1.3 billion, which is 0.6% of the total revenue of the general fund of local budgets in Ukraine (excluding transfers from the state budget).

An alternative option for using temporarily available funds from the general fund of local budgets may be their placement through the purchase of government securities. It is regulated by part eight of Article 16 of the Budget Code and the Resolution No. 544 taken by the Cabinet of Ministers of Ukraine on 23 May 2018 “On Approval of the Placement Procedure for the Temporarily Surplus Funds of Local Budgets by Purchasing Government Securities”.

Experts from the Financial Monitoring Group of the Central Reform Office at the Ministry of Regional Development told about the main aspects that need to be taken into account when conducting transactions with government securities .

The full version is available in Ukrainian – please click HERE

13.03.2019 - 16:10 | Views: 11901
Alternative to deposits: how hromadas can effectively use temporarily surplus funds from local budgets

Attached files:

Tags:

budget budget analytics Yanina Kazyuk Ihor Herasymchuk

Source:

Share the news:

Коментарі:

To add comment you should be authorized or sign_in
Read more:

05 March 2021

З якими фінансовими показниками закінчили 2020 рік об’єднані громади - рейтинг

З якими фінансовими показниками закінчили 2020...

У 2020 році завершено формування нового адміністративно-територіального устрою. У державному бюджеті на 2021 рік...

04 March 2021

The President has approved of the Provisions on the Congress of Local and Regional Authorities

The President has approved of the Provisions on...

President Volodymyr Zelenskyi has signed decree № 89/2021 On Approving of the Provisions on the Congress of Local and...

04 March 2021

Regions will be able to continue projects of developing health care system in rural areas in 2021- the Government decision

Regions will be able to continue projects of...

The Cabinet of Ministers of Ukraine has amended the Procedure and Provisions of Providing a Subvention from the State...

04 March 2021

Distant work in government agencies and local self-government bodies – a survey by the National Public Service Agency

Distant work in government agencies and local...

The National Public Service Agency, a partner of the DESPRO project, is researching issues of organizing distant work...