LAW OF UKRAINE

of December 6, 2018 No. 2646-VIII

About modification of the Budget code of Ukraine concerning implementation of mid-term budgetary planning

The Verkhovna Rada of Ukraine decides:

I. Bring in the Budget code of Ukraine (Sheets of the Verkhovna Rada of Ukraine, 2010, Art. No. 50-51, 572) the following changes:

1. In Article 2 part one:

in Item 9 of the word of "its activities for the next budget periods" shall be replaced with words "execution of the functions assigned to it for the medium-term period, based on the corresponding limiting indicators of expenses of the budget and loan granting from the budget";

add Item 40 with the words "and the purposes of state policy in the corresponding field of activity, forming and/or realization of which are provided by the main manager of budgetary funds";

add with Items 48-2 and 52 of the following content:

"48-2) contingent obligations are potential obligations of the budget which prove to be true only after approach or not approach of certain events in the future";

"52) fiscal risks - factors (including contingent obligations and quasifiscal transactions) which can lead to reduction of receipts of the budget and/or requires additional expenses of the budget, respectively entail increase in budget deficit and the public (local) debt in comparison with planned budget targets".

2. Add Article 3 with part four of the following content:

"4. For mid-term budgetary planning the medium-term period includes planned and following for planned two budget periods".

3. To add part one of Article 4 with Items 2-1 and 6-1 of the following content:

"2-1) Budget declarations";

"6-1) forecasts of local budgets".

4. In Article 7 part one:

in Item 6 of the word "renderings of services, guaranteed by the state, the Autonomous Republic of Crimea, local self-government (further - the guaranteed services)" shall be replaced with words "provisions of public services";

in Item 7 "guaranteed" to replace the word with the word of "public";

to add Item 10 after the words "informing the public on questions" with words of "budget policy".

5. The paragraph one of part three of Article 10 to add with the second offer of the following content: "At the same time departmental classification of expenses and crediting of the government budget in addition contains list of the main managers of means of the government budget for systematization of nation-wide expenses and crediting of the budget (which provide, first of all, accomplishment of actions for realization of state policy with participation of other authorities) on the basis of the main manager of means of the government budget".

6. In the second offer of part nine of Article 13 of the word "according to the procedure, established by the Cabinet of Ministers of Ukraine, and placement" shall be replaced with words "according to the procedure, established by the Cabinet of Ministers of Ukraine," to add placement with words and figures "and placements on accounts of banks of the receipts determined by Item of 1 part three of Article 15, Item 13 parts three of Article 29 and Item 12 parts one of Article 69-1 of this Code, according to the procedure, established by the Cabinet of Ministers of Ukraine".

7. To add part one of Article 14 with paragraphs second and third such content:

"The indicator of central government budget deficit determined by the Budget declaration for every year of the medium-term period cannot exceed 3 percent of forecast nominal amount of gross domestic product of Ukraine for the corresponding year.

The limiting amount of central government budget deficit determined by the law on the Government budget of Ukraine cannot exceed the indicator of central government budget deficit determined by the Budget declaration for the corresponding budget period".

8. To state Item of 1 part three of Article 15 in the following edition:

"1) the loans (loans) attracted by the state from foreign states, foreign financial institutions and international financial institutions for implementation of investment projects".

9. In Article 16:

1) the first offer of part two to state in the following edition:

"2. The credits (loans) from foreign states, foreign financial institutions and international financial institutions for implementation of investment projects are attracted by the state based on international treaties of Ukraine and belong to the state external borrowings";

To add 2) with part ten of such content:

"10. The strategy of national debt management for the medium-term period is created taking into account the indicators determined by the Budget declaration and the law on the Government budget of Ukraine. Strategy is developed by the Ministry of Finance of Ukraine and affirms the Cabinet of Ministers of Ukraine in two-month time from the date of entry into force of the law on the Government budget of Ukraine".

10. In Article 17:

Part one to state 1) in the following edition:

"1. The state guarantees can be provided only in limits and in the directions which are determined by the law on the Government budget of Ukraine, on the basis:

decisions of the Cabinet of Ministers of Ukraine for ensuring partial accomplishment of debt obligations of subjects of managing - residents of Ukraine;

international treaties of Ukraine for ensuring full or partial implementation of debt obligations of subjects of managing - residents of Ukraine.

At the request of the Cabinet of Ministers of Ukraine the corresponding transactions concerning its decisions are made by the Minister of Finance of Ukraine";

2) part three paragraph two after the words "amount of warranty obligations and procedure for their accomplishment" to add with words "the rights and obligations of the guarantor and the creditor";

Part the ninth to add 3) with paragraphs the third and fourth such content:

"In case of initiation of proceedings about bankruptcy of the subject of managing all planned payments on repayment of the loan (loan) at the time of initiation of proceedings are considered as overdue debt.

In case of provision of the state (local) guarantee for ensuring partial accomplishment of debt obligations of subjects of managing bodies of the income and charges levy all amount of overdue debt on such credit (loan) with the subsequent transfer to the creditor of part of collectible amount in proportion to non-quaranteed part of obligations on the credit (loan)".

11. In Article 18:

Part one to add 1) with the paragraph the second such content:

"The limiting amount of provision of the state guarantees cannot exceed 3 percent of the planned income of the general fund of the government budget";

Part three in paragraph one the word "indicative" to exclude 2), and words and figures "the forecast of the corresponding local budget for the following for planned two budget periods according to Article 21 part four" shall be replaced with words also in figures "according to indicators on the following for planned two budget periods in the forecast of the corresponding local budget accepted according to Article 75-1".

12. To state part one of Article 19 in the following edition:

"1. Stages of budget process are recognized:

1) creation and consideration of the Budget declaration (the forecast of the local budget) and decision making on them;

2) designing of budgets;

3) consideration of the project and adoption of law on the Government budget of Ukraine (decision on the local budget);

4) budget implementation, including introduction of amendments to the law on the Government budget of Ukraine (the decision on the local budget);

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