The Verkhovna Rada of Ukraine adopted in the first reading the bill on the management of public investment for the loan of the World Bank.
The Verkhovna Rada adopted in the first reading of government bill №2258 on the improvement of public investment thus fulfilling the condition for Ukraine’s next bailout package from the World Bank (the Second Development Policy Loan in the amount of $ 500 million).The bill was supported by 239 deputies.
Presenting the bill, the Minister of Economic Development and Trade Aivaras Abromavicius said that it is included in the list of documents, the adoption of which will involve a total from the World Bank and the Government of Japan of $ 800 million. 90% of all public investments are allocated without any economic justification, and the bill involves restoring order in this matter. The document provides for the establishment of an interdepartmental commission which will consider projects for funding.
№2258 bill envisages a number of changes to the Budget Code, in particular, the definition of «public investment projects» and «government (local) capital investments», as well as the definition of total public investment and the priorities in the Guidelines of budgetary policy for the next budget period. It is also envisaged the establishment of the Ministry of Finance planned and forecast volumes of public investment for the development and implementation of investment projects with the need to continue or complete such projects (information on such amounts shall annually until April 15 provided by the Ministry of Economic Development and Trade). The bill also provides for displaying a list of public investment projects (with an indication of the volume of funding) a separate application to the explanatory memorandum to the draft law on the state budget.
Information on the implementation of public investment projects, according to the bill must be made public along with information on the implementation of budget programs.
