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: 23022
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:

Read more:

18 July 2025

Вакансія: Експерт (ка) для перегляду РПУВ

Вакансія: Експерт (ка) для перегляду РПУВ

Avfall Sverige та SALAR International оголошують вакансію «Експерт для перегляду РПУВ» до програм «WM4U: Посилення...

18 July 2025

Запрошуємо громади до партнерства для вдосконалення ветеранської політики та підтримки ветеранів на місцевому рівні

Запрошуємо громади до партнерства для...

  Шведсько-українська програма Polaris «Підтримка багаторівневого врядування в Україні» запрошує громади до...

18 July 2025

Lviv Urban Forum 2025: одинадцять підсумків головної урбан-події України

Lviv Urban Forum 2025: одинадцять підсумків...

Lviv Urban Forum — це найбільша в Україні щорічна платформа для обговорення міських викликів, урбанізму та...

18 July 2025

Occupiers persecute local self-government: Ukrainian community leaders remain in captivity

Occupiers persecute local self-government:...

Since the outbreak of the full-scale invasion, the Russian Federation has been systematically persecuting...