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: 9613
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:

24 October 2020

The first meeting of the Regional Social Development Council under the President has taken place

The first meeting of the Regional Social...

The first meeting of the Regional Social Development Council under the President has taken place under the...

22 October 2020

There have already been 993 hub schools in Ukraine, with almost half of them being located in AHs

There have already been 993 hub schools in...

According to the Ministry of Education and Science, by the beginning of October the network of hub schools has...

22 October 2020

The Government has voted UAH 540 million to local budgets for schools disinfectants

The Government has voted UAH 540 million to...

On October, 21, 2020 the Cabinet of Ministers of Ukraine voted approximately UAH 540 million for the purpose of...

22 October 2020

Reorganisation of hromadas and rayons: the Parliament may consider bill 3651-d on November, 3

Reorganisation of hromadas and rayons: the...

At the next plenary session on November, 3 the Verkhovna Rada of Ukraine may support the draft of the Law оn amending...

21 October 2020

Spatial planning: October, 22 – online-presentation of the SPACES programme by CANactions School

Spatial planning: October, 22 –...

Preliminary results of the SPACES educational programme, dedicated to spatial planning for accessibility, cooperation...