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: 1025
Alternative to deposits: how hromadas can effectively use temporarily surplus funds from local budgets

Attached files:

Tags:

budget budget analytics Ya.Kazyuk

Source:

Share the news:

Коментарі:

To add comment you should be authorized
Read more:
195e47bee134242b3c24e9ec2fa6a2de

26 April 2019

By end of the year, there will be 600 new...

The educational reform is not only the introduction of new methods and a new Ukrainian school. This is creation of an...

D5086e252a88c2142209bc7e8b175ece

26 April 2019

“Child and Youth Friendly Community”: city in...

The city of Volodymyr-Volynskyi received an international candidate status of “Child and Youth Friendly...

Cdef0be23ead8f2490fd7a288e6b0ddf

25 April 2019

ATTENTION! Competitive selection to DESPRO...

The Swiss-Ukrainian project “Decentralisation Support in Ukraine” (DESPRO) announces a competition for the DESPRO...