World Bank2017-06-022017-06-022013https://hdl.handle.net/10986/26860Ukraine has extensive public infrastructure inherited from the Soviet times but much of it has fallen into disrepair over the past decades and needs major rehabilitation or replacement so that growth may continue. Creating fiscal space for investing more is one of the critical tasks that facing the country, but a constrained fiscal space together with the use of investments as a stimulus for growth call for more efficiency in public investment management practices. There are a number of fundamental issues that need to be addressed if Ukraine is to make progress in its reform ambitions for public investment management (PIM). The most significant are: (1) most projects avoid scrutiny due to loopholes in classification (lack of definition of a public investment project); (2) there is no effective economic appraisal and appraisal review procedures in place due to limited human resource (HR) capacity, and no common technical standards; (3) the PIM system does not seem to block new projects from entering the budget but allows ministries to delay ongoing ones and squeeze in new ones; and (4) lack of strategic guidance with which to prioritize complicates project selection. One of the fundamental building blocks of a sound PIM system is a clear, legal definition of what counts as a public investment project and what does not. It should be pointed out that this already high discrepancy is only a comparative measure of input values. Developing projects that are output and performance driven should yield even greater efficiencies. Between 2000 and 2008, Ukraine was an average growth performer in a fast growing region, with gross domestic product (GDP) growth averaging 7 percent. As the global financial crisis hit the Ukrainian economy it contracted by 15 percent in 2009, exposing its underlying macroeconomic and structural vulnerabilities. As a result of the insufficient structural transformation and impact of the economic crisis, Ukraine now faces substantial fiscal pressures that threaten economic stability and growth. The Government of Ukraine recognized the need for a modern public financial management (PFM) system and put considerable emphasis on several aspects of PFM reforms. Training for the development of capacity in the PIM system is tricky in Ukraine. It is becoming clear that due to the dynamic nature of the Ukrainian civil service, officials are rapidly moving from one area of the Administration to another.en-USCC BY 3.0 IGOACCOUNTING STANDARDSACCRUAL ACCOUNTINGAGGREGATE REVENUEALLOCATIONALLOCATION OF CAPITALANNUAL BUDGETANNUAL BUDGET EXECUTIONANNUAL BUDGET PROCESSANNUAL BUDGETINGANNUAL BUDGETING PROCESSANNUAL FINANCIAL STATEMENTSAPPROPRIATIONSARREARSARTICLEASSET MANAGEMENTAUDIT SYSTEMBANKING SECTORBENEFIT ANALYSISBIDBUDGET ALLOCATIONBUDGET ALLOCATIONSBUDGET AUTHORITYBUDGET CIRCULARBUDGET CLASSIFICATIONBUDGET CLASSIFICATION SYSTEMBUDGET CODEBUDGET COMPREHENSIVENESSBUDGET CREDIBILITYBUDGET DOCUMENTATIONBUDGET DOCUMENTSBUDGET ENTITYBUDGET EXECUTION REPORTINGBUDGET EXPENDITUREBUDGET INFORMATIONBUDGET LAWBUDGET OFFICIALSBUDGET REPORTINGBUDGET REQUESTSBUDGET SUBMISSIONBUDGET SUPPORTBUDGET SYSTEMBUDGET YEARBUDGETARY FUNDSBUDGETING PROCESSCAPACITY BUILDINGCAPACITY BUILDING ACTIVITIESCAPACITY CONSTRAINTCAPITAL ALLOCATIONSCAPITAL BUDGETCAPITAL BUDGETINGCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL GRANTSCAPITAL INVESTMENTCAPITAL INVESTMENTSCAPITAL PROJECTSCAPITAL SPENDINGCAPITAL TRANSFERSCASH FLOWSCENTRAL BANKCENTRAL GOVERNMENTCENTRAL GOVERNMENT BUDGETCENTRAL RESPONSIBILITYCHECKSCIVIL SERVICECOMPETITIVE PROCUREMENTCONFEDERATIONCONFLICT OF INTERESTCONFLICTS OF INTERESTSCOUNTRY PROCUREMENTCOUNTRY PROCUREMENT ASSESSMENTCURRENCYDISBURSEMENTSECONOMIC CLASSIFICATIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC INSTABILITYECONOMIC STABILITYEX-POST EVALUATIONEXCHANGE RATEEXPENDITURE CLASSIFICATIONEXPENDITURE ITEMEXTERNAL AUDITEXTERNAL DEBTEXTERNAL FUNDINGFINANCESFINANCIAL ACCOUNTABILITYFINANCIAL COSTSFINANCIAL CRISISFINANCIAL REPORTSFISCAL DATAFISCAL ENVELOPEFISCAL FRAMEWORKFISCAL IMPACTFISCAL INFORMATIONFISCAL OPERATIONSFISCAL POLICIESFISCAL POLICYFISCAL PRESSURESFISCAL RISKSFIXED ASSETSGDPGOVERNMENT FINANCEGOVERNMENTAL FISCAL RELATIONSHUMAN RESOURCEINFLATIONARY PRESSURESINFRASTRUCTURE INVESTMENTINFRASTRUCTURE PROJECTSINFRASTRUCTURE SECTORINTERGOVERNMENTAL FISCAL RELATIONSINTERNAL AUDITINTERNAL AUDIT FINDINGSINTERNAL AUDIT FUNCTIONINTERNAL CONTROLSINTERNAL RATE OF RETURNINTERNATIONAL BANKINTERNATIONAL FINANCIAL INSTITUTIONINTERNATIONAL STANDARDSINVESTINGINVESTMENT ACTIVITIESINVESTMENT ACTIVITYINVESTMENT PROJECTSLEGISLATIVE SCRUTINYLEVEL OF CONFIDENCELOANLOCAL BUDGETSLOCAL GOVERNMENTLOCAL GOVERNMENTSMATURITYMATURITY STRUCTUREMINISTRY OF ECONOMYMINISTRY OF FINANCEMONOPOLYNATIONAL GOVERNMENTNATIONAL POLICYOPERATIONAL COSTSPERFORMANCE ASSESSMENTPERFORMANCE AUDITINGPERFORMANCE INDICATORPERFORMANCE INDICATORSPERFORMANCE TARGETSPIECEMEAL REFORMSPOLITICAL ECONOMYPOLITICIANSPRIVATE SECTORPROCUREMENT PROCESSPROGRAM CLASSIFICATIONPROGRAM CLASSIFICATIONSPROGRAMSPUBLIC ADMINISTRATIONPUBLIC ASSETPUBLIC CAPITALPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEWPUBLIC FINANCEPUBLIC FINANCIAL MANAGEMENTPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC PROCUREMENTPUBLIC SECTORPUBLIC SECTOR ACCOUNTINGPUBLIC SERVICESPURCHASING POWERRE-CAPITALIZATIONREFORM AGENDAREFORM PROCESSREFORM PROGRAMREFORM STRATEGYREGULATORY FRAMEWORKREGULATORY FUNCTIONREPUBLICRETURNSROAD FUNDROAD NETWORKSERVICE DELIVERYSERVICE RECIPIENTSSOCIAL COSTSSOCIAL FUNDSSOCIAL INFRASTRUCTURESOCIAL INSURANCESOCIAL INSURANCE FUNDSSOCIAL PROJECTSSOVEREIGN GUARANTEESSTATE BUDGETSTATE GUARANTEESSTATE TAXSTATE TREASURYSTOCK OF CAPITALSUB-NATIONAL GOVERNMENTSSUPREME AUDIT INSTITUTIONTARGET SETTINGTAX BURDENTAX CODETAX RATESTIGHT FISCAL SITUATIONTOTAL EXPENDITURESTRANSPARENCYTREASURY SYSTEMUNCERTAINTYYEARLY BUDGETReportWorld Bank10.1596/26860