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Official translation
Last modification: 15.06.21 07:45:54

BUDGET CODE OF UKRAINE

(The Official Bulletin of the Verkhovna Rada of Ukraine (BVR), 2010, Nos. 50–51, Article 572)

{As amended by Laws
No. 2592-VI dated 07 October 2010, BVR, 2011, No. 10, Article 63
No. 2756-VI dated 02 December 2010, BVR, 2011, No. 23, Article 160
No. 2856-VI dated 23 December 2010, BVR, 2011, No. 29, Article 272
No. 3172-VI dated 05 April 2011, BVR, 2011, No. 40, Article 401
No. 3396-VI dated 19 May 2011, BVR, 2012, No. 4, Article 11
No. 3612-VI dated 07 July 2011, BVR, 2012, No. 12-13, Article 81
No. 3614-VI dated 07 July 2011, BVR, 2012, No. 9, Article 63
No. 3668-VI dated 08 July 2011, BVR, 2012, No. 12-13, Article 82
No. 3828-VI dated 06 October 2011, BVR, 2012, No. 21, Article 204
No. 4318-VI dated 12 January 2012, BVR, 2012, No. 39, Article 464}

{For an official interpretation of the Code, see the Decision of the Constitutional Court No. 3–RP/2012 of 25 January 2012}

{As amended by Laws
No. 4731-VI of 17 May 2012, BVR, 2013, No. 15, Article 98
No. 4875-VI of 05 June 2012, BVR, 2013, No. 17, Article 154
No. 5059-VI of 05 July 2012, BVR, 2013, No. 25, Article 251
No. 5063-VI of 05 July 2012, BVR, 2013, No. 28, Article 298
No. 5067-VI of 05 July 2012, BVR, 2013, No. 24, Article 243
No. 5081-VI of 05 July 2012, BVR, 2013, No. 30, Article 340
No. 5083-VI of 05 July 2012, BVR, 2013, No. 33, Article 435
No. 5204-VI of 06 September 2012, BVR, 2013, No. 31, Article 369
No. 5213-VI of 06 September 2012, BVR, 2013, No. 32, Article 413
No. 5290-VI of 18 September 2012, BVR, 2013, No. 41, Article 549
No. 5302-VI of 02 October 2012, BVR, 2013, No. 40, Article 525
No. 5428-VI of 16 October 2012, BVR, 2013, No. 43, Article 619
No. 5463-VI of 16 October 2012, BVR, 2014, No. 4, Article 61
No. 5492-VI of 20 November 2012, BVR, 2013, No. 51, Article 716
No. 5496-VI of 20 November 2012, BVR, 2014, No. 1, Article 4
No. 5518-VI of 06 December 2012, BVR, 2014, No. 8, Article 90
No. 163-VII of 04 April 2013, BVR, 2014, No. 10, Article 1 09
No. 242-VII of 16 May 2013, BVR, 2014, No. 11, Article 1 39
No. 398-VII of 04 July 2013, BVR, 2014, No. 14, Article 254
No. 665-VII of 05 November 2013, BVR, 2014, No. 22, Article 782
No. 688-VII of 19 November 2013, BVR, 2014, No. 22, Article 789
No. 719-VII of 16 January 2014, BVR, 2014, No. 9, Article 93}

{On the repeal of Law No. 2592-VI of 7 October 2010, also refer to Law No. 763-VII of 23 February 2014,
BVR, 2014, No. 12, Article 189}

{As amended by Laws
No. 1210-VII of 15 April 2014, BVR, 2014, No. 26, Article 893
No. 1588-VII of 04 July 2014, BVR, 2014, No. 36, Article 1183
No. 1592-VII of 04 July 2014, BVR, 2014, No. 36, Article 1185
No. 1621-VII of 31 July 2014, BVR, 2014, No. 39, Article 2006
No. 1636-VII of 12 August 2014, BVR, 2014, No. 43, Article 2030
No. 1697-VII of 14 October 2014, BVR, 2015, No. 2-3, Article 12
No. 1698-VII of 14 October 2014, BVR, 2014, No. 47, Article 2051
No. 71-VIII of 28 December 2014, BVR, 2015, No. 7-8, No. 9, Article 55
No. 79-VIII of 28 December 2014, BVR, 2015, No. 12, Article 76
No. 80-VIII of 28 December 2014, BVR, 2015, No. 5, Article 37
No. 118-VIII of 15 January 2015, BVR, 2015, No. 10, Article 60
No. 176-VIII of 10 February 2015, BVR, 2015, No. 16, Article 107
No. 212-VIII of 02 March 2015, BVR, 2015, No. 16, Article 116
No. 288-VIII of 07 April 2015, BVR, 2015, No. 24, Article 172
No. 313-VIII of 09 April 2015, BVR, 2015, No. 25, Article 189
No. 328-VIII of 09 April 2015, BVR, 2015, No. 26, Article 221
No. 416-VIII of 14 May 2015, BVR, 2015, No. 28, Article 253
No. 437-VIII of 19 May 2015, BVR, 2015, No. 30, Article 275
No. 486-VIII of 02 June 2015, BVR, 2015, No. 30, Article 286
No. 491-VIII of 02 June 2015, BVR, 2015, No. 30, Article 288
No. 542-VIII of 18 June 2015, BVR, 2015, No. 32, Article 316
No. 595-VIII of 14 July 2015, BVR, 2015, No. 37-38, Article 366
No. 666-VIII of 03 September 2015, BVR, 2015, No. 45, Article 405
No. 700-VIII of 17 September 2015, BVR, 2015, No. 46, Article 425
No. 714-VIII of 06 October 2015, BVR, 2015, No. 46, Article 429
No. 732-VIII of 08 October 2015, BVR, 2015, No. 49-50, Article 450
No. 791-VIII of 12 November 2015, BVR, 2015, No. 52, Article 484
No. 836-VIII of 26 November 2015, BVR, 2016, No. 1, Article 10
No. 837-VIII of 26 November 2015, BVR, 2016, No. 1, Article 11
No. 914-VIII of 24 December 2015, BVR, 2016, No. 5, Article 52
No. 918-VIII of 24 December 2015, BVR, 2016, No. 6, Article 57
No. 928-VIII of 25 December 2015, BVR, 2016, No. 5, Article 54
No. 937-VIII of 26 January 2016, BVR, 2016, No. 8, Article 77
No. 1406-VIII of 02 June 2016, BVR, 2016, No. 26, Article 519
No. 1509-VIII of 08 September 2016, BVR, 2016, No. 42, Article 702
No. 1702-VIII of 20 October 2016, BVR, 2016, No. 48, Article 815
No. 1759-VIII of 17 November 2016, BVR, 2016, No. 52, Article 867
No. 1763-VIII of 17 November 2016, BVR, 2017, No. 1, Article 5
No. 1789-VIII of 20 December 2016, BVR, 2017, No. 2, Article 26
No. 1793-VIII of 20 December 2016, BVR, 2017, No. 7-8, Article 49
No. 1794-VIII of 20 December 2016, BVR, 2017, No. 2, Article 27
No. 1800-VIII of 21 December 2016, BVR, 2017, No. 4, Article 46
No. 1801-VIII of 21 December 2016, BVR, 2017, No. 3, Article 31
No. 1974-VIII of 23 March 2017, BVR, 2017, No. 18, Article 219
No. 2011-VIII of 12 April 2017, BVR, 2017, No. 22, Article 254
No. 2125-VIII of 11 July 2017, BVR, 2017, No. 35, Article 375
No. 2150-VIII of 03 October 2017, BVR, 2017, No. 44, Article 393
No. 2233-VIII of 07 December 2017, BVR, 2018, No. 2, Article 8
No. 2241-VIII of 07 December 2017, BVR, 2018, No. 2, Article 9
No. 2246-VIII of 07 December 2017, BVR, 2018, No. 3-4, Article 26}

{On certain provisions recognised as unconstitutional, refer to the The decision of the Constitutional Court
No. 7-r/2018 of 11 October 2018}

{As amended by Laws
No. 2621-VIII of 22 November 2018, BVR, 2019, No. 2, Article 9
No. 2629-VIII of 23 November 2018, BVR, 2018, No. 50, Article 400
No. 2646-VIII of 06 December 2018, BVR, 2019, No. 4, Article 32
No. 74-IX of 12 September 2019, BVR, 2019, No. 40, Article 216
No. 76-IX of 12 September 2019, BVR, 2019, No. 40, Article 217
No. 283-IX of 12 November 2019, BVR, 2020, No. 2, Article 7
No. 293-IX of 14 November 2019, BVR, 2020, No. 6, Article 32
No. 294-IX of 14 November 2019, BVR, 2020, No. 5, Article 31
No. 467-IX of 16 January 2020, BVR, 2020, No. 29, Article 1 95}

{On certain provisions recognised as unconstitutional, refer to the The decision of the Constitutional Court
No. 3-r/2020 of 27 February 2020}

{On certain provisions recognised as unconstitutional, refer to the The decision of the Constitutional Court
No. 6-r/2020 of 26 March 2020}

{As amended by Laws
No. 553-IX of 13 April 2020, BVR, 2020, No. 19, Article 126
No. 642-IX of 02 June 2020, BVR, 2020, No. 39, Article 301
No. 677-IX of 04 June 2020, BVR, 2020, No. 42, Article 346
No. 704-IX of 16 June 2020, BVR, 2020, No. 42, Article 352}

{On certain provisions recognised as unconstitutional, refer to the The decision of the Constitutional Court
No. 10-r/2020 of 28 August 2020}

{As amended by Laws
No. 907-IX of 17 September 2020 – enters into force from 1 January 2021
No. 1081-IX of 15 December 2020, BVR, 2021, No. 7, Article 54
No. 1082-IX of 15 December 2020}

{Regarding the application of certain provisions of this Code, see also Law No. 553 of 13 April 2020, as amended by Law No. 909-IX of 17 September 2020}

{Establish that in 2019 the provisions of Article 24-2, clauses 2 and 3 of Part 3, Article 29, clause 2-1 of Part 4, Article 30 and clause 41, Section VI "Final and transitional provisions" of this Code shall apply subject to the provisions of clause 7, Article 11, clause 16, Article 14 and clause 9 Final provisions of the Law No. 2629-VIII of 23 November 2018, under the Law No. 2629-VIII of 23 November 2018}

{In the text of the Code the words "State Treasury of Ukraine" and "bodies of the State Treasury of Ukraine" in all cases are replaced by the words "State Treasury Service of Ukraine" and "bodies of the State Treasury Service of Ukraine" in the corresponding case under the Law No. 3614-VI of 07 July 2011}

{In the text of the Code, the words "Ministry of Finance of Ukraine" in all cases are replaced by the words "central executive body ensuring the formation of state budget policy" in the corresponding case; the words "Minister of Finance of Ukraine" in all cases shall be replaced by the words "a member of the Cabinet of Ministers of Ukraine responsible for the formation and implementation of state budget policy, or a person performing his/her duties" in the corresponding case; the words "State Treasury Service of Ukraine" in all cases are replaced by the words "central executive body implementing state policy in the field of treasury servicing of budget funds" in the corresponding case; the words "bodies of the State Treasury Service of Ukraine" in all cases are replaced by the words "bodies providing treasury services to budget funds" in the corresponding case under the Law No. 5463-VI of 16 October 2012}

{In the text of the Code the words "state tax service body of Ukraine", "state tax service body", "tax service body", "tax body" in all cases and numbers are replaced by the words "revenue and duties body" in the corresponding case and number under the Law No. 242-VII f 16 May 2013}

{In the text of the Code:

the words "central executive body ensuring the formation of state budget policy" in all cases are replaced by the words "Ministry of Finance of Ukraine" in the corresponding case;

the words "a member of the Cabinet of Ministers of Ukraine responsible for the formation and implementation of state budget policy, or a person performing his/her duties" in all cases are replaced by the words "Minister of Finance of Ukraine" in the corresponding case;

after clause 23-1, part 1 of Article 2, the words "central executive body implementing state policy in the field of treasury servicing of budget funds" in all cases shall be replaced by the words "Treasury of Ukraine" in the corresponding case;

after part 1 of Article 43, the words "body performing treasury servicing of budget funds" in all cases and numbers shall be replaced by the words "treasury body of Ukraine" in the corresponding case and number

under the Law No. 176-VIII of 10 February 2015}

{The words "investment programme" and "investment programme (project)" in all cases and numbers in the text of the Code are replaced by the words "investment project" in the corresponding case and number according to Law No. 288-VII of 07 April 2015}

{The words "(mandatory payments) " in the text of the Code has been deleted in all cases under Law No. 914-VIII of 24 December 2015}

{In the text of the Code:

after clause 2-1, part 1 of Article 2, the words "budgets of united territorial communities created in accordance with the law and the long-term plan for the community territories formation" in all cases and numbers are replaced by the words "budgets of united territorial communities" in the corresponding case and number;

the words "disabled persons" in all cases are replaced by the words "persons with disabilities" in the corresponding case, except for the name of the Social Protection Fund for the Disabled in clause 13-1, part 3 of Article 29 and sub-clause "b", clause 9, part 1 of Article 87;

the words "disabled children" in all cases is replaced by the words "children with disabilities" in the corresponding case;

the words "disabled war veteran" in all cases and numbers are replaced by the words "person with a disability due to war" in the corresponding case and number

under the Law No. 2233-VIII of 07 December 2017}

{The words "territorial community of the city" in the text of the Code in all cases and numbers are replaced by the words "urban territorial community" in the corresponding case and number under the Law No. 1081-IX of 15 December 2020}


The Budget Code of Ukraine defines the legal basis for the functioning of the budget system of Ukraine, its principles, the basics of the budget process and inter-budgetary relations and the responsibility for violations of budget legislation.

SECTION I.
BUDGET SYSTEM OF UKRAINE AND FUNDAMENTALS OF THE BUDGET PROCESS

Chapter 1. GENERAL PROVISIONS

Article 1. Relations regulated by the Budget Code of Ukraine

1. The Budget Code of Ukraine regulates relations arising in the process of preparation, consideration, approval, execution of budgets, reporting on their implementation and control over compliance with budget legislation, as well as liability for violations of budget legislation, as well as defines the legal basis for the formation and repayment of state and local debt.

{Part 1 of Article 160 as amended by Law No. 3614-VI dated 7 July 2011}

Article 2. Definitions of key terms

1. The terms below shall have the following meanings in this Code:

1) budget is a plan for the formation and use of financial resources ensuring the tasks and functions carried out by public authorities, authorities of the Autonomous Republic of Crimea, local governments during the budget period;

2) budgets of local self-government are the budgets of rural, settlement, city territorial communities, as well as budgets of districts in cities (in case of district councils formation in the city);

{Сlause 2, part 1 of Article 2 as amended by Laws No. 176-VIII of 10 February 2015, No. 2233-VIII of 07 December 2017; as amended by Law No. 907-IX of 17 September 2020 - entered into force on 1 January 2021, No. 1081-IX of 15 December 2020}

{Clause 2-1, part 1 of Article 2 has been deleted by virtue of Law No. 907-IX of 17 September 2020 – entered into force on 1 January 2021}

3) budget classification is a single systematised grouping of revenues, expenditures, lending, budget financing, debt under the legislation of Ukraine and international standards;

4) budget programme is a set of measures aimed at achieving a common goal, objectives and expected results, which definition and implementation is carried out by the administrator of budget funds in accordance with the functions assigned to it;

5) budget system of Ukraine is a set of state budget and local budgets, built taking into account economic relations, state and administrative-territorial structures and regulated by provisions of law;

6) budget allocation is the authority of the budget manager, provided in accordance with the budget purpose, to make a budget commitment and make payments, which has quantitative, time and target restrictions;

7) budget commitment is any allocation of the order, conclusion of a contract, purchase of goods, services or other similar operations during the budget period made in accordance with the budget, according to which it is necessary to make payments during the same period or in the future;

7-1) budget commitment on government derivatives is a budget commitment under which it is necessary to make expenditures on payments on government derivatives in accordance with the terms of their placement during the current budget period and/or in the future;

{Part 1 of Article 2 has been supplemented with Clause 7-1 under Law No. 122-IX dated 17 September 2015}

8) budget purpose is the authority of the key spending unit, provided by this Code, the law on the State Budget of Ukraine (decision on the local budget), which has quantitative, time and target restrictions and allows to provide budget allocations;

9) budget request is a document prepared by the key spending unit, containing proposals with appropriate justification for the number of budget funds required to perform its functions for the medium term, based on the relevant budget expenditure limits and budget loans;

{Paragraph 9, Part 1, Article 2 as amended by Law No. 2646-VIII dated 6 December 2018}

10) budget process is the process of preparation, consideration, approval, execution of budgets, reporting on their execution, as well as control over compliance with budget legislation regulated by budget legislation;

11) budget funds (budget costs) are budget revenues and budget expenditures due in accordance with the legislation;

12) budget institutions are public authorities, local governments, as well as organisations established by them in the prescribed manner, which are fully maintained at the expense of the state budget or local budget, respectively. Budget institutions are non-profit;

12-1) debt obligation is the borrower's obligation to the lender on the loan (credit) arising as a result of the issue and placement of debt securities and/or the conclusion of credit agreements;

{Part 1 of Article 2 has been supplemented with Clause 12-1 under Law No. 3614-VI dated 02 July 2011}

13) budget expenditures are funds directed to the programmes and activities implementation provided for in the relevant budget. Budget expenditures do not include: debt repayment; granting loans from the budget; budget funds placement on deposits; purchase of securities; return of overpaid taxes and fees amounts and other budget revenues, carrying out their budget reimbursement; compensation of part of the penalties (financial) sanctions transferred to buyers (consumers) at the expense of penalties (financial) sanctions applied by the bodies controlling the collection of budget revenues, as a result of the inspection on the buyer (consumer) application or complaint about the violation of the established procedure for settlement operations by the taxpayer;

{Clause 13, part one, Article2 as revised by Law No. 2233-VIII of 07 December 2017}

14) budget expenditures are budget expenditures, granting loans from the budget, debt repayment and placement of budget funds on deposits, purchase of securities;

15) own revenues of budgetary institutions are revenues received by budgetary institutions in the prescribed manner as payment for services, works and targeted activities, grants, gifts and charitable contributions, as well as revenues from the products or property sale and other activities;

{Clause 15, part 1 of Article 2 as amended by Laws No. 5492-VI of 20 November 2012, No. 163-VII of 04 April 2013, No. 293-IX of 14 November 2019}

15-1) guarantee obligation is the guarantor's obligation to fully or partially fulfil the debt obligations of the business entity – resident of Ukraine to the creditor in case of non-fulfilment by such entity of its obligations under the loan (credit) obtained under the state or local guarantee;

{Part 1 of Article 2 has been supplemented with Clause 15-1 under Law No. 3614-VI dated 07 July 2011}

16) debt guaranteed by the Autonomous Republic of Crimea, regional council or city territorial community is the total amount of debt obligations of business entities – residents of Ukraine to repay received and outstanding as of the reporting date loans (credits), which performance is secured by local guarantees;

{Clause 16, part 1 of Article 2 as amended by Laws No. 3614-VI of 07 July 2011, No. 2621-VIII of 22 November 2018}

17) debt guaranteed by the state is the total amount of debt obligations of business entities – residents of Ukraine to repay received and outstanding loans (credits) as of the reporting date, which performance is secured by state guarantees;

{Clause 16, part 1 of Article 2 as amended by Law No. 3614-VI of 7 July 2011}

18) key spending units are budget institutions represented by their heads, which receive powers by establishing budget allocations in accordance with Article 22 of this Code;

19) public borrowing means operations related to the receipt of credits (loans) by the state in terms of repayment, payment and maturity in order to provide finance for the state budget;

20) state debt is the total amount of debt obligations of the state to repay received and outstanding loans (borrowings) as of the reporting date, arising from government borrowing;

20-1) state investment project is an investment project implemented through state investment in state-owned objects using state capital investments and/or loans (borrowings) involved by the state or under state guarantees;

{Part 1 of Article 2 has been supplemented with Clause 20-1 under Law No. 288-VIII dated 07 April 2015}

20-2) state capital investments mean capital expenditures of the state budget (granting loans from the state budget), aimed at the creation (acquisition), reconstruction, technical re-equipment of fixed assets of state property, which expected useful life exceeds one year;

{Part 1 of Article 2 has been supplemented with Clause 20-2 under Law No. 288-VIII dated 07 April 2015}

21) budget deficit is the excess of budget expenditures over its revenues (taking into account the difference between the provision of the loans from the budget and the return of the loans to the budget);

21-1) long-term obligation for energy service is an obligation under the energy service agreement of the spending unit, in which operational management or economic management is the object in respect of which the purchase of energy service, according to which payments shall be made during future and/or current budget periods in within the amount of reduction of expenditures for utilities and energy (compared to expenditures that would have been made in the absence of energy service);

{Part 1of Article 2 has been supplemented with clause 21-1 under Law No. 328-VIII of 9 April 2015}

{Clause 22, part 1 of Article 2 has been deleted by virtue of Law No. 79-VIII of 28 December 2014}

23) budget revenues are tax, non-tax and other revenues on a non-refundable basis, which collection is provided by the legislation of Ukraine (including transfers, fees for the provision of administrative services, own receipts of budget institutions);

{Clause 23, part 1 of Article 2 as amended by Laws No. 3828-VI of 06 October 2011, No. 5492-VI of 20 November 2012, No. 163-VII of 04 April 2013}

23-1) single treasury account is an account opened to the central executive body implementing the state policy in the field of treasury servicing of budget funds (hereinafter – the Treasury of Ukraine), in the National Bank of Ukraine for accounting and settlements in the electronic payment system of the National Bank of Ukraine, which consolidates the funds of state and local budgets, funds of compulsory state social and pension insurance, funds of other clients, which are in the treasury service (including funds credited to a single account) in accordance with the law.

{Paragraph 1, Clause 23-1, Part 1 of Article 2 as amended by Law No. 1081-IX of 15 December 2020}

The term "single account" is used in this code in the sense given in the Tax Code of Ukraine;

{Clause 23-1, part 1 of Article 2 has been appended with Paragraph 2 under Law No. 1081-IX dated 15 December 2020}

{Part 1 of Article 11 has been supplemented with Clause 23-1 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 176-VIII of 10 February 2015}

24) Law on the State Budget of Ukraine is a law approving the State Budget of Ukraine and containing provisions to ensure its implementation during the budget period;

25) remaining budget balance is the number of funds in the relevant budget, spending units and recipients of budget funds of this budget at the end of the reporting period;

26) investment project – a set of measures defined based on the national system of values and tasks of innovative economic development and aimed at the development of individual industries, sectors, industries, regions, which are implemented using state and/or local budgets or by providing state and/or local guarantees;

26-1) quasi-fiscal operations mean operations of public authorities and local governments, the National Bank of Ukraine, funds of compulsory state social and pension insurance, economic entities of the state and municipal sectors of the economy, which are not reflected in the budget, but may lead to reduced budget revenues and/or require additional budget expenditures in the future;

{Part 1 of Article 2 has been supplemented with Clause 26-1 under Law No. 3614-VI dated 07 July 2011}

{Clause 27, part 1 of Article 2 has been deleted by virtue of Law No. 79-VIII of 28 December 2014}

{Clause 28, part 1 of Article 2 has been deleted by virtue of Law No. 79-VIII of 28 December 2014}

{Clause 29, part 1 of Article 2 has been deleted by virtue of Law No. 79-VIII of 28 December 2014}

30) estimate is the main planned financial document of the budgetary institution, which establishes the authority to receive revenues and distribution of budget allocations for budget commitments and payments for the budget period to perform the budget institution its functions and achieve results determined in accordance with budget allocations;

31) budget lending means operations to provide funds from the budget on terms of return, payment and maturity, resulting in obligations to the budget (granting loans from the budget), and operations to return such funds to the budget (return of loans to the budget). For the purposes of this Code, budget loans also include budget loans and financial aid from the budget on a repayable basis;

31-1) property of a budgetary institution – property (in the meaning given in the Civil Code of Ukraine) belonging to state or municipal property and is assigned to a budgetary institution in accordance with the legislation;

{Part 1 of Article 2 is supplemented by Clause 31-1 in accordance with Law No. 463-IX of 16 January 2020}

32) inter-budget transfers mean funds transferred free of charge and irrevocably from one budget to another;

33) local borrowing – operations to obtain loans (borrowings) to the budget of the Autonomous Republic of Crimea, regional or city budget on terms of repayment, payment and maturity in order to finance the budget of the Autonomous Republic of Crimea, regional or city budget;

{Сlause 33, Part 1, Article 2 as amended by Law No. 2621-VIII dated 22 November 2018}

34) local budgets means the budget of the Autonomous Republic of Crimea, regional, district budgets and budgets of local self-government;

35) local debt means the total amount of debt obligations of the Autonomous Republic of Crimea, regional council or city territorial community to repay received and outstanding loans (borrowings) as of the reporting date, arising from local borrowing;

{Сlause 35, Part 1, Article 2 as amended by Law No. 2621-VIII dated 22 November 2018}

36) local financial body is an institution performing the functions of forecasting local budgets, compiling, implementing local budgets, control over the spending of funds by spending units, as well as other functions related to local budget management in accordance with the legislation of Ukraine. For the purposes of this Code, the executive body of the Autonomous Republic of Crimea on finance is referred to local financial bodies;

{Clause 36, part 1 of Article 2, as amended by Laws No. 5428-VI of 16 October 2012, No. 5463-VI of 16 October 2012, No. 79-VIII of 28 December 2014; as amended by Law No. 907-IX of 17 September 2020 – entered into force on 1 January 2021; revised by Law No. 1081-IX of 15 December 2020}

37) budget revenues – budget incomes, repayment of loans to the budget, funds from state (local) borrowings, funds from the privatisation of state property (relative to the state budget), return of budget funds from deposits, receipts due to sale/presentation of securities;

37-1) servicing of state (local) debt – operations on payment for the use of credit (loan), payment of commissions, fines and other payments related to the management of state (local) debt. Such transactions do not include repayment of state (local) debt;

{Part 1 of Article 2 has been supplemented with Clause 37-1 under Law No. 3614-VI dated 07 July 2011}

38) budget funds recipient is a business entity, public or other institution that does not have the status of a budgetary institution, authorised by the spending unit to implement measures provided for in the budget programme, and receives budget funds for their implementation;

39) bodies that control budget levy revenues collection – state authorities, as well as local self-government bodies authorised to control the correctness and timeliness of collection of taxes and fees and other budget revenues;

40) passport of the budget programme is a document defining the purpose, objectives, directions of use for budget funds, responsible executors, performance indicators and other characteristics of the budget programme in accordance with the budget purpose established by the Law on the State Budget of Ukraine (decision on a local budget), and the goals of state policy in the relevant field of activity, which formation and/or implementation is provided by the key spending unit;

{Сlause 40, Part 1, Article 2 as amended by Law No. 2646-VIII dated 6 December 2018}

41) payment is the fulfilment of budget, debt, guarantee or tax obligations having arisen in the current or previous budget periods;

{Clause 41, part 1 of Article 2 as amended by Law No. 3614-VI of 7 July 2011}

41-1) repayment of state (local) debt means operations on repayment by the borrower of credits (loans) in accordance with the terms of credit agreements and/or issue of debt securities;

{Part 1 of Article 2 has been supplemented with Clause 41-1 under Law No. 3614-VI dated 07 July 2011}

42) programme-target method in the budget process – a method of management of budget funds aimed at achieving specific results at the expense of the budget using the assessment of the effectiveness for the use of budget funds at all stages of the budget process;

43) draft budget – a draft plan for the formation and use of financial resources to ensure the tasks and functions performed by public authorities (authorities of the Autonomous Republic of Crimea, local governments) during the budget period, which is an integral part of the draft law on the State Budget of Ukraine (draft decision on the local budget);

44) budget surplus is the excess of budget revenues over its expenditures (taking into account the difference between the return of loans to the budget and the provision of loans from the budget);

45) decision on the local budget is a regulatory legal act of the Verkhovna Rada of the Autonomous Republic of Crimea or the relevant local council, issued in the prescribed manner, approving the local budget and determining the powers of the Council of Ministers of the Autonomous Republic of Crimea, local state administration or executive body local budget during the budget period;

46) budget schedule is a document which establishes the distribution of revenues, budget financing, repayment of loans to the budget, budget allocations to the key spending units for certain periods of the year in accordance with the budget classification;

47) manager of budget funds is a budgetary institution represented by its head, authorised to receive budget allocations, budget commitments, long-term commitments for energy services, medium-term commitments in the field of health care and budget expenditures;

{Clause 47, part 1 of Article 2, as amended by Laws No. 328-VIII of 09 April 2015, No. 1081-IX of 15 December 2020}

47-1) medium-term obligation under contracts for construction, reconstruction, repair and maintenance of roads – obligations in accordance with the concluded agreements (contracts) in the areas of use of funds specified in clauses 1 and 2, part 3 of Article 24-2 of this Code, according to which payments shall be made during the current budget period and/or medium-term period within the relevant budget allocations established by the law on the State Budget of Ukraine and the amount of funds of the state road fund (in such areas) determined by the Budget Declaration and/or programme documents of economic and social development;

{Part 1 of Article 2 has been supplemented with Clause 47-1 under Law No. 283-IX of 12 November 2019; as amended by Law No. 677-IX of 04 June 2020}

47-2) medium-term commitment in the field of health care means the obligation of the central executive body ensuring the formation and implementation of state policy in the field of health care, in the areas of budget funds use, which procurement is carried out by specialised procurement organisations, and/or the obligation of the person authorised to carry out procurement in the field of health care, in part of the provided list of areas of budget funds use, including under the contract of controlled access, concluded in accordance with the law, to make payments during the current budget period and/or a medium-term period for the implementation of programmes and the implementation of centralised health measures;

{Part 1 of Article 2 has been supplemented with Clause 47-2 under Law No. 1079-IX of 15 December 2020}

48) subventions means intergovernmental transfers for use for a specific purpose in the manner prescribed by the body decided to grant the subvention;

48-1) temporarily free funds of the single treasury account and foreign currency budget accounts means the amount of funds accounted for in accounts in the Treasury of Ukraine, which diversion will not lead to loss of budgets solvency (ability to make timely and full payments and pay all liabilities) and debt during the period for which such funds are to be placed on deposits or by purchasing government securities and used to cover temporary cash gaps in local budgets, the general fund of the state budget and the Pension Fund of Ukraine with their subsequent return by the end of the current budget period;

{Part 1 of Article 2 has been supplemented with Clause 48-1 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

48-2) contingent liabilities – contingent liabilities of the budget confirmed only after the occurrence or non-occurrence of certain future events;

{Part 1 of Article 2 has been supplemented with Clause 48-2 under Law No. 2646-VIII dated 06 December 2018}

49) management of budget funds means a set of actions of a participant in the budget process in accordance with its powers related to the formation and use of budget funds, monitoring compliance with budget legislation, aimed at achieving goals, objectives and specific results of its activities and ensuring effective, efficient and targeted use of budget funds;

49-1) state (local) debt management means a set of actions related to borrowing, servicing and repayment of public (local) debt, other transactions with state (local) debt, aimed at achieving a balanced budget and optimising the debt burden;

{Part 1 of Article 2 has been supplemented with Clause 49-1 under Law No. 3614-VI dated 07 July 2011}

50) financial standard of budget security means the level of financial support for tasks and functions guaranteed by the state within the available budget funds, which are carried out by the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of local self-government, used to determine intergovernmental transfers;

51) budget financing means budget revenues and expenditures related to changes in debt, deposits and securities, funds from the privatisation of state property (relative to the state budget), changes in budget balances used to cover the budget deficit or determine the budget surplus;

52) fiscal risks means factors (including contingent liabilities and quasi-fiscal operations) which may lead to a decrease in budget revenues and/or require additional budget expenditures, respectively, increase the budget deficit and state (local) debt compared to the planned budget indicators.

{Part 1 of Article 2 has been supplemented with Clause 52 under Law No. 2646-VIII dated 06 December 2018}

Article 3. Budget period

1. The budget period for all budgets making up the budget system of Ukraine is one calendar year, which begins on January 1 of each year and ends on December 31 of the same year. Failure of the Verkhovna Rada of Ukraine to adopt the law on the State Budget of Ukraine by January 1 of the respective year is not a ground for establishing another budget period.

2. In accordance with the Constitution of Ukraine, the budget period for the State Budget of Ukraine in special circumstances may be different than provided for in part 1 of this Article.

Special circumstances under which the State Budget of Ukraine may be approved for a budget period other than provided for in part 1 of this Article include:

1) the imposition of martial law;

2) declaration of a state of emergency in Ukraine.

3. In case of approval of the State Budget of Ukraine for a budget period other than provided for in part 1 of this Article, local budgets shall be approved for the same period.

4. For medium-term budget planning, the medium-term period includes the planned and two budget periods following the planned one.

{Article 3 has been supplemented with Part 4 under Law No. 2646-VIII dated 6 December 2018}

Article 4. Composition of budget legislation

1. Budget legislation consists of:

1) Constitution of Ukraine;

2) this Code;

2-1) Budget Declaration;

{Part 1 of Article 4 has been supplemented with Clause 2-1 under Law No. 2646-VIII dated 06 December 2018}

3) the law on the State Budget of Ukraine;

4) other laws regulating budgetary relations provided for in Article 1 of this Code;

5) regulatory legal acts of the Cabinet of Ministers of Ukraine adopted on the basis of and pursuant to this Code and other laws of Ukraine provided for in clauses 3 and 4 of this Part of Article;

{For official interpretation of clause5, part 1, Article 4, see Constitutional Court Judgment No. 3-rp/2012 of 25 January 2012}

6) regulatory legal acts of executive bodies adopted on the basis of and pursuant to this Code, other laws of Ukraine and regulatory legal acts of the Cabinet of Ministers of Ukraine provided for in clauses 3, 4 and 5 of this Article;

6-1) local budget forecasts;

{Part 1 of Article 4 has been supplemented with Clause 6-1 under Law No. 2646-VIII dated 06 December 2018}

7) decisions on the local budget;

8) decisions of bodies of the Autonomous Republic of Crimea, local state administrations, bodies of local self-government, adopted in accordance with this Code, regulatory legal acts provided for in clauses 3, 4, 5, 6 and 7 of this Article.

Regulatory legal acts and decisions adopted based on the and in compliance with the requirements of this Code shall not be subject to the legislation on the implementation of state regulatory policy and regulatory activity.

{Part one of Article 4 has been supplemented with paragraph 10 under Law No. 914-VIII of 24 December 2015}

2. The budget system of Ukraine and the State Budget of Ukraine shall be established exclusively by this Code and the Law on the State Budget of Ukraine.

If another normative legal act defines budget relations differently than in this Code, the relevant norms of this Code shall apply.

The law on the State Budget of Ukraine solely determines the revenues and expenditures of the State Budget of Ukraine.

3. If an international treaty of Ukraine is submitted for ratification, the implementation of which requires the adoption of new laws of Ukraine regulating budget relations or amendments to the existing ones, drafts of such laws are submitted for consideration to the Verkhovna Rada of Ukraine together with the draft law On Ratification and are adopted simultaneously.

4. Consideration of draft laws on their impact on budget indicators and compliance with the laws governing budgetary relations shall be carried out in accordance with a special procedure specified in Article 27 of this Code.

5. Amendments to this Code may be made only by laws amending the Budget Code of Ukraine.

{Article 4 has been supplemented with Part 5 following Law No. 5428-VI of 16 October 2012}

Chapter 2. BUDGET SYSTEM OF UKRAINE AND ITS PRINCIPLES

Article 5. Structure of the budget system of Ukraine

1. The budget system of Ukraine consists of:

1) state budget;

2) local budgets:

a) the budget of the Autonomous Republic of Crimea;

b) regional budgets;

c) district budgets;

d) local government budgets.

{Article 5 as amended by Laws No. 176-VIII of 10 February 2015, No. 907-IX of 17 September 2020; as amended by Law No. 1081-IX of 15 December 2020}

Article 6. Consolidated budget

1. The consolidated budget is a set of budget indicators used to analyze and forecast the economic and social development of the state.

2. The consolidated budget of Ukraine includes indicators of the State Budget of Ukraine, the consolidated budget of the Autonomous Republic of Crimea and the consolidated budgets of regions, cities of Kyiv and Sevastopol.

3. The consolidated budget of the Autonomous Republic of Crimea includes indicators of the budget of the Autonomous Republic of Crimea, district budgets and budgets of local self-government in the territory of the Autonomous Republic of Crimea.

{Part 3 of Article 6 as amended by Law No. 907-IX of 17 September 2020 – entered into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

{Paragraph 1, Clause 23-1, Part 1 of Article 2 as amended by Law No. 1081-IX of 15 December 2020}

4. The consolidated budget of the region includes indicators of the regional budget, district budgets and budgets of local self-government in the territory of this region.

{Part 4 of Article 6 as amended by Laws No. 2233-VIII of 07 December 2017, No. 907-IX of 17 September 2020 – entered into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

{Part 5 of Article 2 has been deleted by virtue of Law No. 907-IX of 17 September 2020 – entered into force on 1 January 2021}

6. The consolidated budget of the city territorial community, which includes districts in the city, includes indicators of the city budget and district budgets in the city (in the case of the district councils formation in the city).

{Part six of Article 6 as amended by Law No. 1081-IX of 15 December 2020}

{Part seven of Article 6 has been deleted under Law No. 453-VIII of 7 December 2017}

Article 7. Principles of the budget system of Ukraine

1. The budget system of Ukraine is based on the following principles:

1) the principle of unity of the budget system of Ukraine – the unity of the budget system of Ukraine is ensured by a single legal framework, a single monetary system, a single regulation of budgetary relations, a single budget classification, unity of budget execution, as well as accounting and reporting;

2) the principle of balance – the authority to implement budget expenditures shall correspond to the amount of budget revenues for the relevant budget period;

3) the principle of independence – the State Budget of Ukraine and local budgets are independent. The state funds from the state budget are not responsible for the budgetary obligations of the authorities of the Autonomous Republic of Crimea and local governments. The authorities of the Autonomous Republic of Crimea and the bodies of local self-government with the funds of the respective local budgets shall not be liable for each other's budgetary obligations, as well as for the budgetary obligations of the state. The independence of budgets is ensured by assigning them appropriate sources of budget revenues, the right of relevant state authorities, authorities of the Autonomous Republic of Crimea and local governments to determine the use of budget funds in accordance with Ukrainian law, the law of the Verkhovna Rada of the Autonomous Republic of Crimea and relevant local councils independently of each other to consider and approve the relevant local budgets;

4) the principle of completeness – the budgets shall include all budget revenues and budget expenditures carried out in accordance with regulations of public authorities, authorities of the Autonomous Republic of Crimea, local governments;

5) the principle of validity – the budget is formed on realistic macro indicators of economic and social development of Ukraine and calculations of budget revenues and budget expenditures, which are carried out in accordance with the approved methods and rules;

6) the principle of efficiency and effectiveness – all participants in the budget process should strive in drawing up and executing budgets to achieve the goals planned on the basis of the national system of values and tasks of innovative economic development by ensuring the quality of public services while attracting the minimum amount of budget funds and achieving the maximum result when using the number of funds determined by the budget;

{Сlause 6, Part 1, Article 7 as amended by Law No. 2646-VIII dated 6 December 2018}

7) principle of subsidiarity – the distribution of expenditures types between the state budget and local budgets, as well as between local budgets is based on the need to bring the provision of public services as close as possible to their direct consumer;

{Сlause 7, Part 1, Article 7 as amended by Law No. 2646-VIII dated 6 December 2018}

8) principle of targeted use of budget funds – budget funds are used only for the purposes specified in the budget allocations and budget allowances;

9) the principle of justice and impartiality – the budgetary system of Ukraine shall be based on the principles of fair and impartial distribution of social wealth among citizens and territorial communities;

10) the principle of publicity and transparency – informing the public on budget policy, drafting, consideration, approval, implementation of the state budget and local budgets, as well as control over the implementation of the state budget and local budgets.

{Сlause 10, Part 1, Article 7 as amended by Law No. 2646-VIII dated 6 December 2018}

Article 8. Budget classification

1. Budget classification is used for drawing up and execution of the state and local budgets, reporting on their execution, control over financial activity of public authorities, authorities of the Autonomous Republic of Crimea, local governments, other managers of budgetary funds, carrying out the financial analysis in the cut of incomes, organisational, functional and economic categories of expenditures, lending, financing and debt, as well as to ensure national and international comparability of budget indicators. Budget classification is mandatory for use by all participants in the budget process within the budgetary authority.

2. The central executive body ensuring the formation and implementation of public financial and budgetary policy (hereinafter – the Ministry of Finance of Ukraine), approves the budget classification, amendments to it and informs the Verkhovna Rada of Ukraine.

{Part two of Article 8 as amended by Law No. 176-VIII dated 10 February 2015}

3. The budget classification has the following components:

1) budget revenues classification;

2) classification of expenditures and budget lending;

3) budget financing classification;

4) debt classification.

Article 9. Budget revenues classification

1. Budget revenues are classified into the following sections:

1) tax revenues;

2) non-tax revenues;

3) income from capital transactions;

4) transfers.

2. Tax revenues are recognised as established by the laws of Ukraine on taxation national taxes and fees and local taxes and fees.

3. Non-tax revenues include:

1) income from property and business activities;

2) administrative fees and charges, income from non-commercial economic activity;

2-1) own receipts of budget institutions;

{Part 3 of Article 9 is supplemented by Clause 2-1 under Law No. 293-IX of 14 November 2019}

3) other non-tax revenues.

4. Transfers means funds received from other state authorities, authorities of the Autonomous Republic of Crimea, local governments, other states or international organisations on a gratuitous and non-refundable basis.

Article 10. Classification of expenditures and budget lending

1. Expenditures and budget lending are classified according to:

1) budget programmes (programme classification of expenditures and budget lending);

2) a sign of the key spending unit (departmental classification of expenditures and budget lending);

3) functions related to the implementation of expenditures and budget lending (functional classification of expenditures and budget lending).

2. programme classification of expenditures and budget lending is used in the case of application of the programme-target method in the budget process. The programme classification of expenditures and lending of the state budget (local budget) is formed by the Ministry of Finance of Ukraine (local financial body) on the proposals submitted by the key spending units during the draft law on the State Budget of Ukraine (draft decision on local budget) determined by the distribution of expenditures and lending to the state budget (local budget) by budget programmes in the law on the State Budget of Ukraine (decision on the local budget) and may be specified during the execution of the state budget (local budget) when amending the law on the State Budget of Ukraine ( decision on the local budget) and in case of application of the provisions of part six of Article 23 and part two of Article 24 of this Code.

{Paragraph one, part two of Article 31 as amended by Law No. 293-IX of 14 November 2019}

The programme classification for expenditures and the local budget lending is formed taking into account the standard programme classification of expenditures and lending of the local budget, which is approved by the Ministry of Finance of Ukraine.

{Paragraph 3, part 2 of Article 10 has been deleted under Law No. 2621-VIII of 22 November 2018}

3. The departmental classification of expenditures and budget lending contains a list of the main administrators of budget funds for the systematisation of expenditures and the budget lending based on the key spending unit. At the same time, the departmental classification of expenditures and crediting of the state budget additionally contains a list of the main managers of state budget funds for systematisation of national expenditures and the budget lending (which primarily provide for the implementation of state policy measures with other authorities).

{Paragraph 1, part 3 of Article 10 as amended by Law No. 2646-VIII of 06 December 2018}

Based on the departmental classification of expenditures and budget lending, the Treasury of Ukraine compiles and maintains a single register of budget managers and recipients of budget funds.

Key spending units determine the network of lower-level budget managers and budget recipients, taking into account the requirements for the formation of a single register of budget managers and budget recipients and the data of such a register.

4. Functional classification of expenditures and budget lending has the following levels of detail:

1) sections in which expenditures and lending of the budget connected with performance of functions of the state, the Autonomous Republic of Crimea or local government are systematised;

2) subdivisions and groups in which expenditures and crediting of the budget for the performance of functions of the state, the Autonomous Republic of Crimea or local self-government are specified.

5. Budget expenditures are classified according to the economic characteristics of operations carried out during their implementation (economic classification of budget expenditures).

According to the economic classification of budget expenditures, budget expenditures are divided into current and capital.

6. Budget lending classification systematises budget lending by type of borrower and divides lending operations into loans from the budget and repayment of loans to the budget.

7. Budget expenditures include expenditures of consumption and expenditures of development in accordance with the budget classification.

Article 11. Budget financing classification

1. Budget financing classification contains the sources of financial resources needed to cover the budget deficit, and the areas of financial resources expenditure resulting from the budget surplus. Debt repayment costs are part of budget financing.

2. Budget financing is classified by:

1) creditor type (by categories of creditors or debt obligations holders);

2) type of debt obligation (for funds used to finance the budget).

Article 12. Debt classification

1. Debt classification systematises information on all debt obligations of the state, the Autonomous Republic of Crimea, the regional council, the city territorial community.

{Part 1 of Article 12 as amended by Law No. 1081-IX of 15 December 2020}

2. Debt is classified by type of creditor and by type of debt obligation.

Article 13. Budget components

1. The budget may consist of general and special funds.

2. The general budget fund components are the following:

1) all budget revenues, except those intended for enrolment in a special budget fund;

2) all budget expenditures made at the expense of the general budget fund;

3) the budget lending (return of credits to the budget without definition of the target direction and granting credits from the budget which is carried out at the expense of the general fund receipts of the budget);

4) financing of the general budget fund.

2. The special budget fund components are the following:

1) budget revenues (including own revenues of budgetary institutions), which have a target direction;

2) budget expenditures made at the expense of specifically determined revenues of the special budget fund (including own revenues of budgetary institutions);

3) the budget lending (return of credits to the budget with the definition of a target direction and granting of credits from the budget which is carried out at the expense of specifically defined receipts of the special fund of the budget);

4) financing of the special budget fund.

4. Own receipts of budget institutions are received in addition to the funds of the general budget fund and are included in the special budget fund. Thus receipt of budgetary institutions in the form of property (assets) in kind received from other budgetary institutions which carry out management functions on the state (municipal) property objects according to the legislation, within the corresponding budget, is not own receipts of such budgetary institutions.

{Paragraph 1, Part 4, Article 13 as amended by Law No. 1081-IX of 15 December 2020}

Own receipts of budget institutions are divided into the following groups:

the first group – revenues from fees for services provided by budgetary institutions in accordance with the law;

{Paragraph three, part four of Article 13 as amended by Laws No. 5492-VI of 20 November 2012, No. 163-VII of 04 April 2013}

the second group – other sources of own receipts of budgetary institutions.

The first group includes the following subgroups:

subgroup 1 – payment for services provided by budgetary institutions in accordance with their main activity;

subgroup 2 – receipts of budgetary institutions from additional (economic) activities;

subgroup 3 – payment for the property lease of budgetary institutions, carried out in accordance with the Law of Ukraine "On Lease of State and Municipal Property";

{Paragraph 8, Part 4 of Article 13 as revised by Law No.293-IX dated 14 November 2019}

subgroup 4 – revenues of budgetary institutions from the sale of property in the prescribed manner (except for real estate).

The second group includes the following subgroups:

subgroup 1 – charitable contributions, grants and gifts;

subgroup 2 – revenues received by budgetary institutions from enterprises, organisations, individuals and other budgetary institutions for the implementation of targeted measures, including measures for the alienation of land and other real estate located on them for public use, located privately owned by individuals or legal entities;

{Paragraph 12, part 4 of Article 13 as amended by Laws No.5428-VI of 16 October 2012, No. 293-IX of 14 November 2019}

subgroup 3 – revenues received by state and municipal institutions of professional (vocational), professional higher and higher education from the placement of temporarily free budget funds received for the provision of paid services on deposits, if such institutions are legally granted the relevant right; revenues received by state and municipal institutions of professional higher and higher education, research institutions and cultural institutions as interest accrued on the balance of current accounts opened with public sector banks to place their own revenues received as payment for services provided by them with main activity, charitable contributions and grants;

{Paragraph 13, Part 4, Article 13 as revised by Law No.914-VIII of 24 December 2015; as amended by Law No.293-IX of 14 November 2019}

{Paragraph 14, Part 4, Article 13 has been deleted under Law No. 76-IX of 12 September 2019}

Own receipts of budget institutions are used (subject to part nine of Article 51 of this Code) for:

covering the costs associated with the services arrangement and provision provided by budgetary institutions in accordance with their main activities (through the revenues of the first group, subgroup 1);

arrangement of additional (economic) activities of budgetary institutions (through the revenues of the first group, subgroup 2);

maintenance, arrangement, repair and acquisition of budgetary institutions property (through the revenues of the first group, subgroup 3);

repair, modernisation or acquisition of new non-current assets and tangible assets, coverage of costs associated with the organisation of waste and scrap collection and transportation to receiving points (through the revenues of the first group, subgroup 4);

economic needs of budgetary institutions, including payment for utilities and energy (through the revenues of the first group, subgroups 2 and 4);

organisation of the main activities of budgetary institutions (through the revenues of the first group, subgroups 1 and 3);

{Paragraph twenty-one, part fourth of Article 13 as amended by Laws No. 79-VIII of 28 December 2014, No. 76-IX of 12 September 2019}

implementation of relevant targeted measures (through the revenues of the second group, subgroups 2).

5. The budget distribution into general and special funds, their constituent parts are determined exclusively by this Code and the law on the State Budget of Ukraine.

6. The basis for the decision of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council on the establishment of a special fund within the local budget may be exclusively this Code and the law on the State Budget of Ukraine.

7. Transfer of funds between general and special budget funds is allowed only within budget allocations by amending the law on the State Budget of Ukraine, deciding on the local budget or amending it (except as provided in part two, Article 57 of this Code).

8. Payments from the special budget fund shall be made within the funds actually received by this fund for the relevant purpose (subject to the requirements of part two, Article 57 of this Code) if this Code and/or the law on the State Budget of Ukraine (local budget decision) ) is not set otherwise.

9. Creation of extra-budgetary funds by state authorities, authorities of the Autonomous Republic of Crimea, local governments and other budgetary institutions is not allowed. The opening of extra-budgetary accounts for the allocation of budget funds (including own receipts of budget institutions) by public authorities, authorities of the Autonomous Republic of Crimea, local governments and other budgetary institutions is prohibited, except as provided in part eight of Article 16 and part two of Article 78 of this Code, placement of budget funds by foreign diplomatic missions of Ukraine on current accounts of foreign banks, placement on current accounts in public sector banks of own revenues of state and municipal institutions of professional higher and higher education, scientific institutions and cultural institutions received as payment for services provided by them main activity, charitable contributions and grants, in accordance with the procedure established by the Cabinet of Ministers of Ukraine, placement by institutions of professional (vocational), professional higher and higher education on deposits of temporarily free budget funds received for the provision of paid services, in the manner prescribed by the Cabinet of Ministers of Ukraine, if such institutions are granted the right by law, and placing on bank accounts receipts specified in clause 1, part three of Article 15, clause 13, part three of Article 29 and clause 12, part one of Article 69-1 of this Code, in the manner prescribed by the Cabinet Ministers of Ukraine.

{Part nine of Article 13 as amended by Law No. 79-VIII of 28 December 2014; as revised by Laws No. 2646-VIII of 06 December 2018, No. 293-IX of 14 November 2019}

10. Planned and reporting indicators on budgetary reimbursement of value added tax, repayment of loans to the budget, debt repayment, placement of budget funds on deposits, purchase of securities, ensuring the established amount of working capital balance and other relevant indicators determined by the Ministry of Finance of Ukraine are displayed with a negative value.

Chapter 3. BUDGET FINANCING (DEFICIT, SURPLUS) AND STATE (LOCAL) DEBT

Article 14. Budget deficit and surplus, remaining budget balance

1. Budget approval with a deficit is allowed in the presence of reasonable sources of budget funding, taking into account the features defined by Article 72 of this Code.

{Paragraph 2, part 1 of Article 14 is suspended for 2021 under Law No. 1082-IX of 15 December 2020} The state budget deficit indicator determined by the Budget Declaration for each year of the medium-term period may not exceed 3 per cent of the projected nominal volume of the gross domestic product of Ukraine for the respective year.

{Part one of Article 14 has been supplemented with paragraph two under Law No. 2646-VIII of 06 December 2018}

{Paragraph three, part 1, of Article 14 is suspended for 2021 under Law No. 1082-IX of 15 December 2020} The maximum amount of the state budget deficit, determined by the law on the State Budget of Ukraine, may not exceed the state budget deficit indicator for the relevant budget period determined by the Budget Declaration.

{Part one of Article 14 has been supplemented with paragraph three under Law No. 2646-VIII of 06 December 2018}

2. The budget surplus shall be approved for the purpose of repaying the debt, ensuring the established amount of the circulating balance of budget funds and purchasing securities, taking into account the peculiarities specified in Article 72 of this Code.

3. Current remaining budget balance – part of the balance of the general budget fund, which is formed to cover temporary cash gaps.

The current remaining budget balance is set at no more than 2 per cent of the planned expenditures of the general fund of the budget and approved in the law on the State Budget of Ukraine (decision on the local budget).

At the end of the budget period, the circulating balance of budget funds shall be maintained in the prescribed amount.

4. The excess of the remaining balance for the general budget fund over the current balance of budget funds at the end of the budget period is the free remaining budget balance used for budget expenditures in accordance with the law on the State Budget of Ukraine and/or changes thereto (changes to the decision on a local budget).

Article 15. Sources of budget funding

1. Sources of budget funding are the following:

1) funds from state (local) internal and external borrowings;

2) funds from the privatisation of state property (including other revenues directly related to the privatisation process) – in relation to the state budget;

3) return of budget funds from deposits, receipts due to the sale/presentation of securities;

4) free remaining budget balance in compliance with the conditions specified by this Code, including the balance of state budget funds formed at the expense of unscheduled state borrowings made in the previous budget period in accordance with part eleven, Article 16 of this Code;

{Clause 4, part 1 of Article 15 as amended by Law No. 293-IX of 14 November 2019}

5) temporarily free funds of the single treasury account.

{Part 1 of Article 15 has been supplemented with Clause 5 under Law No. 1079-IX of 15 December 2020}

2. Issuance funds of the National Bank of Ukraine may not be a source of budget financing.

3. The sources of formation of the special fund of the State Budget of Ukraine in terms of funding are the following:

1) credits (loans) involved by the state from foreign states, foreign financial institutions and international financial organisations for the investment projects implementation;

{Сlause 1, part 3 of Article 15 as amended by Law No. 2646-VIII of 06 December 2018}

2) other revenues specified by the law on the State Budget of Ukraine.

{Article 15 has been supplemented with Part 3 following Law No. 5428-VI of 16 October 2012}

4. In case of amount reduction of the sources of financing form the state budget of a certain type in comparison with the amount determined by the law on the State budget of Ukraine, amount increase of sources of financing from the state budget of other type observing the maximum amount of the annual state budget deficit is allowed by the decision of the Cabinet of Ministers of Ukraine.

{Article 15 has been supplemented with Part 4 following Law No. 5428-VI of 16 October 2012}

Article 15-1. Public debt and state-guaranteed debt management

1. Public debt and state-guaranteed debt are managed by the central executive body implementing the state budget policy in the field of public debt and state-guaranteed debt management (hereinafter – the Debt Agency of Ukraine). The activities of the Debt Agency of Ukraine are directed and coordinated by the Cabinet of Ministers of Ukraine through a member of the Cabinet of Ministers of Ukraine responsible for the formation and implementation of state financial and budgetary policy or a person acting in his/her duties (hereinafter – the Minister of Finance of Ukraine).

2. The Ministry of Finance of Ukraine monitors the management of public debt and state-guaranteed debt, ensuring the definition of organisational and methodological principles for such management and systematic analysis for the results and effectiveness of such management.

The Accounting Chamber carries out state external financial control (audit) of the activities of the Debt Agency of Ukraine in terms of public debt management and state-guaranteed debt at least once every three years.

3. The Debt Agency of Ukraine shall prepare an annual report on the results of public debt and state-guaranteed debt management and publish such report on its official website no later than April 1 of the year following the reporting year.

{The Code has been supplemented with Article 15-1 under Law No. 293-IX of 14 November 2019}

Article 16. Implementation of state (local) borrowings and management of state (local) debt

{Title of Article 16 as amended by Law No. 3614-VI dated 7 July 2011}

1. State borrowings shall be made within the limits set by the law on the State Budget of Ukraine (except for the cases provided for in part four, Article 15 of this Code, paragraph one, part seven and paragraph one, part eleven of this Article), subject to the maximum amount of public debt at the end of the budget period (except for the cases provided for in part four, Article 15 of this Code and the paragraph one, part eleven of this Article).

{Paragraph one, part one of Article 16 as amended by Laws No. 3614-VI of 07 July 2011, No. 5302-VI of 02 October 2012; as amended by Law No. 5428-VI of 16 October 2012; as revised by Law No. 293-IX of 14 November 2019}

The right to carry out state internal and external borrowings belongs to the state in the person of the Head of the Debt Agency of Ukraine or a person performing his/her duties (hereinafter – the Head of the Debt Agency of Ukraine), on behalf of the Minister of Finance of Ukraine.

{Paragraph 2, part 1 of Article 16 as amended by Laws No. 3614-VI of 07 July 2011, No. 5463-VI of 16 October 2012, No. 176-VIII of 10 February 2015, No. 293-IX of 14 Novmber 2019}

The Cabinet of Ministers of Ukraine determines the basic conditions for the government borrowing implementation, including the basic conditions of loan agreements and the basic conditions for issues and the procedure for placement of government securities.

{Paragraph 3, part 1 of Article 16 as revised by Law No. 2233-VIII of 07 December 2017}

In the event of a decrease in the amount of funds from state internal (external) borrowings compared to the amount specified by the law on the State Budget of Ukraine, due to deteriorating conditions of such borrowings and/or financial market conditions may increase the amount of funds from state external (internal) borrowings in compliance with the maximum amount of public debt.

{Paragraph 4, part 1 of Article 16 as amended by Law No. 4318-VI of 12 January 2012}

In case of reduction (increase) of payments on public debt repayment related to improvement (deterioration) of conditions on the financial market in comparison with the amount defined by the law on the State Budget of Ukraine, it is allowed to reduce (increase) the number of state borrowings in compliance with the amount of financing of the state budget for debt operations determined by the law on the State Budget of Ukraine.

{Paragraph 5, part 1 of Article 16 as amended by Law No. 4318-VI of 12 January 2012}

2. Credits (loans) from foreign states, foreign financial institutions and international financial organisations for the investment projects implementation are attracted by the state based on the international agreements of Ukraine and belong to the state external borrowings. Funds for the implementation of such investment projects, as well as the cost of servicing and repaying the relevant loans (borrowings) are provided in the law on the State Budget of Ukraine throughout the term of the loan agreements. Relevant international treaties do not require ratification, unless otherwise provided by law.

{Part 2 of Article 16 as amended by Laws No. 3614-VI dated 7 July 2011, No. 2646-VIII dated 6 December 2018}

3. The Verkhovna Rada of the Autonomous Republic of Crimea, regional and city councils have the right to carry out local internal borrowings (except for the cases provided for in Article 73 of this Code).

{Paragraph 1, Part 3, Article 16 as revised by Law No. 677-IX of 04 June 2020}

Local external borrowings by obtaining credits (loans) from international financial organisations can be carried out by the Verkhovna Rada of the Autonomous Republic of Crimea, regional councils and all city councils. Other local external borrowings can be carried out only by the Verkhovna Rada of the Autonomous Republic of Crimea, Kyiv, Sevastopol city councils, city councils of urban territorial communities with the administrative center in the city of regional significance.

{Paragraph two, part three of Article 16 as amended by Laws No. 3614-VI of 07 July 2011, No. 79-VIII of 28 December 2014; as amended by Law No. 2621-VIII of 22 November 2018; as revised by Law No. 293-IX of 1081-IX of 15 December 2020}

The right to make local borrowings within the limits determined by the decision on the local budget, taking into account Article 74 of this Code belongs to the Autonomous Republic of Crimea, regional council, city territorial community represented by the head of the local financial body on behalf of the Verkhovna Rada of the Autonomous Republic of Crimea.

{Paragraph 3, Part 3 of Article 16 as amended by Law No. 2621-VIII of 22 November 2018}

4. A state-financed organisation/budget-funded entity shall not have the right to borrow (except for the cases provided for by this Code) or to provide loans to legal entities or individuals from the budget in any form (unless appropriate budget allocations for providing loans from the budget have been established).

{Part 4 of Article 91 as amended by Law No. 3614-VI dated 07 July 2011}

5. During the implementation of state borrowings, transactions with public debt in accordance with part seven of this article and the provision of state guarantees by the decision of the Cabinet of Ministers of Ukraine, the Chairman of the Debt Agency of Ukraine has the right to undertake obligations on behalf of Ukraine, including the waiver of sovereign immunity in possible disputes concerning such obligations.

{Part five of Article 11 as amended under Law No. 2233-VIII of 07 December 2017; as amended under Law No. 293-IX of 14 November 2019}

6. Expenditures for servicing and repayment of state (local) debt shall be carried out by the Debt Agency of Ukraine (local financial body) in accordance with credit agreements, as well as regulations on which public debt obligations arise (debt obligations of the Autonomous Republic of Crimea, regional councils or territorial communities), regardless of the amount of funds determined for this purpose by the law on the State Budget of Ukraine (decision on the local budget).

{Paragraph 1, Part 6 of Article 16 as amended by Laws No. 2621-VIII of 22 November 2018, No. 293-IX of 14 November 2019}

If the expected amount of expenditures for servicing and repayment of public debt exceeds the amount specified in the law on the State Budget of Ukraine for this purpose, the Ministry of Finance of Ukraine shall immediately inform the Cabinet of Ministers of Ukraine and the Accounting Chamber. The Cabinet of Ministers of Ukraine shall immediately inform the Verkhovna Rada of Ukraine of the expected excess of such expenditures and submit proposals for amendments to the law on the State Budget of Ukraine within two weeks.

{Paragraph 2, Part 6, Article 16 as amended by Law No. 293-IX of 14 November 2019}

If the expected amount of expenses for local debt servicing and repayment exceeds the amount determined by the decision on the local budget for this purpose, the Verkhovna Rada of the Autonomous Republic of Crimea, regional or city council shall make appropriate changes to the decision on local budget.

{Paragraph 3, Part 6 of Article 16 as amended by Law No. 2621-VIII of 22 November 2018}

7. In order to effectively manage public (local) debt and/or liquidity of the single treasury account and foreign currency accounts of the state budget, the Chairman of the Debt Agency of Ukraine in agreement with the Minister of Finance of Ukraine on behalf of Ukraine (Verkhovna Rada of the Autonomous Republic of Crimea). by their decision the local financial body) has the right to carry out transactions with the state (local) debt, including exchange, issue, purchase, redemption and sale of the state debt obligations (debt obligations of the Autonomous Republic of Crimea, regional council, city territorial community), for conditions for compliance with the maximum amount of state (local) debt at the end of the budget period.

{Paragraph one, part seven of Article 16 as amended by Laws No. 5302-VI of 02 October 2012, No. 2233-VIII of 07 December 2017, No. 2621-VIII of 22 November 2018, No. 293-IX of 14 November 2019}

The main terms of transactions with public debt carried out in the current budget period in excess of 5 per cent of public debt at the end of the previous budget period are determined by the Cabinet of Ministers of Ukraine in agreement with the Verkhovna Rada Committee on Budget.

{Part seven of Article 16 has been supplemented with a new paragraph under Law No. 293-IX of 14 November 2019}

The Debt Agency of Ukraine (local financial body) may involve business entities to provide agency, consulting, rating and other services necessary for the management of public (local) debt, at the expense of the state (local) budget within the budget allocations for public local) debt.

{Part 7 of Article 16 has been supplemented with paragraph under Law No. 3614-VI of 07 July 2011; as amended by Law No. 293-IX of 14 November 2019}

{Part 7 of Article 16 as amended by Law No. 3614-VI dated 07 July 2011}

8. The Head of the Debt Agency of Ukraine, in agreement with the Minister of Finance of Ukraine, has the right to place temporarily free funds of the single treasury account and foreign currency accounts of the state budget on deposits or by purchasing government securities within the current budget period on a competitive basis and/or by conducting auctions with the subsequent return of such funds by the end of the current budget period.

{Paragraph one, part eight of Article 31 as amended by Law No. 293-IX of 14 November 2019}

The head of the local financial body has the right to place on a competitive basis temporarily free local budgets on deposit or by purchasing securities issued by the Autonomous Republic of Crimea, the relevant city council further return of such funds by the end of the current budget period, as well as through the purchase of government securities by decision of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council within the current budget period.

{Paragraph 2, part 8 of Article 16 as amended by Law No. 2233-VIII of 07 December 2017}

The procedure for carrying out the operations provided for in this part of the Article shall be determined by the Cabinet of Ministers of Ukraine in compliance with the following requirements:

establishment of the minimum rate of return on the purchase of securities, the conclusion of agreements for the purchase of securities – when purchasing securities;

concluding a bank deposit agreement with a bank institution – when placing on deposits.

According to this part of the article, the agreement on purchase of securities issued by the Autonomous Republic of Crimea by the relevant city council must contain provisions on fulfilment by the persons concluding this agreement of the obligation to resell/purchase such securities by the end of the current budget period.

{Paragraph 6, part 8 of Article 16 as amended by Law No. 2233-VIII of 07 December 2017}

9. Conditions for issue and circulation of the state securities and the securities issued by the Autonomous Republic of Crimea, the corresponding city council, are defined taking into account the Law of Ukraine "About securities and the stock market".

The Debt Agency of Ukraine publishes the schedule of auctions for placing government debt securities on the domestic market. Such a schedule may be specified in connection with changes in the conditions of government borrowing and/or financial market conditions.

{Paragraph 2, Part 9, Article 16 as amended by Law No. 293-IX of 14 November 2019}

{Article 16 has been supplemented with Part 9 under Law No. 3614-VI dated 7 July 2011}

10. {Temporarily, from the date of entry into force of Law No. 553-IX of 13 April 2020 until 1 January 2021, the provisions of part ten, Article 16 shall not apply - see clause 2, section II of the Law No. 553-IX of 13 April 2020} The strategy of public debt management for the medium term is formed taking into account the indicators defined by the Budget Declaration and the Law on the State Budget of Ukraine. The strategy is developed by the Ministry of Finance of Ukraine and approved by the Cabinet of Ministers of Ukraine annually, no later than June 1 of the year preceding the planned one.

{Article 16 has been supplemented with part 10 under Law No. 2646-VIII of 6 December 2018; as amended by Law No. 293-IX of 14 November 2019}

11. In order to effectively manage public debt in the financial market may be borrowed in excess of the amounts specified for the current budget period by the State Budget of Ukraine, by the decision of the Cabinet of Ministers of Ukraine agreed with the Verkhovna Rada Committee on Budget, under favorable conditions provided implementation in the current budget period of the plan of state borrowings to the general fund of the state budget (taking into account possible increase of such plan in case of application of provisions of part four, article 15 of this Code) in the amount not exceeding 25 per cent of the plan of state borrowings to the general fund of the state budget period, preserving funds received at the end of the current budget period. Such funds are used to finance the state budget in the next budget period with a corresponding reduction in government borrowing for the next budget period, defined by the law on the State Budget of Ukraine, in compliance with the maximum annual deficit of the state budget.

{Article 16 has been supplemented with part eleven under Law No. 293-IX of 14 November 2019}

Article 17. State and local guarantees

{Title of Article 17 as revised by Law No. 3614-VI of 07 July 2011}

1. {Temporarily, from the date of entry into force of Law No. 553-IX of 13 April 2020 until 1 January 2021, the provisions of the first paragraph of the first part of Article 17 shall not apply to determine the maximum amount of state guarantees - see clause 2, Section II of the Law No. 553-IX of 13 April 2020} State guarantees may be provided only within the limits and in the areas specified by the law on the State Budget of Ukraine, based on:

decisions of the Cabinet of Ministers of Ukraine – to ensure the fulfilment of debt obligations of business entities – residents of Ukraine, including to ensure the partial fulfilment of debt obligations on the loans portfolio of creditor banks provided to business entities of micro, small and/or medium-sized enterprises – residents of Ukraine, in the amount not exceeding 80 per cent of the total amount of such debt obligations on the loan portfolio and 80 per cent – on each individual loan (hereinafter – state guarantees on a portfolio basis). The procedure for selecting creditor banks, the conditions for providing state guarantees on a portfolio basis, the fee for providing such guarantees, as well as the amount and type of collateral provided by the relevant economic entities shall be established by the Cabinet of Ministers of Ukraine;

{Paragraph 1, part 1 of Article 17 as amended by Laws No. 293-IX of 14 November 2019, No. 1079-IX of 15 December 2020}

international agreements of Ukraine – to ensure the fulfilment of debt obligations of business entities – residents of Ukraine.

{Paragraph 3, Part 1, Article 17 as amended by Law No. 293-IX of 14 November 2019}

On behalf of the Cabinet of Ministers of Ukraine, the relevant transactions concerning its decisions shall be made by the Chairman of the Debt Agency of Ukraine.

{Paragraph 7, Part 1, Article 17 as amended by Law No. 293-IX of 14 November 2019}

{Part 1 of Article 17 as amended by Laws No. 3614-VI of 07 July 2011, No. 4318-VI of 12 January 2012; as revised by Law No. 2646-VIII of 06 December 2018}

2. Local guarantees may be provided by decision:

Of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant city council to ensure full or partial fulfilment of debt obligations of economic entities – residents of Ukraine, belonging to the municipal sector of the city or the Autonomous Republic of Crimea, located in the relevant territory projects aimed at the development of communal infrastructure or the introduction of resource-saving technologies;

of the relevant regional council to ensure full or partial fulfilment of debt obligations of economic entities – residents of Ukraine, belonging to the communal sector of the economy, located in the relevant territory and implementing investment projects in this territory, aimed at developing communal infrastructure, restoration and reconstruction of objects of common property of territorial communities or state property managed by oblast councils, oblast state administrations, or introduction of resource-saving technologies, as well as implementation of projects of construction, reconstruction, overhaul of public roads of state and local significance.

{Part two, Article 17 as revised by Law No. 2621-VIII of 22 November 2018}

3. State (local) guarantees are provided on terms of payment, maturity, as well as ensuring the fulfilment of obligations in the manner prescribed by law.

The transaction on the provision of state (local) guarantee is made in writing and shall determine: the subject of the guarantee; full names and locations of the business entity and the creditor (in case of guaranteeing the fulfilment of obligations under the loan agreement); amount of credit (loan); the scope of warranty obligations and the procedure for their implementation; rights and obligations of the guarantor and creditor; conditions of occurrence of a guarantee case; warranty period.

{Paragraph 2, part 3 of Article 17 as amended by Law No. 2646-VIII of 06 December 2018}

The transaction on the provision of a state guarantee on a portfolio basis shall be executed in writing and shall specify: the subject of the guarantee; full name and location of the creditor; the scope of warranty obligations and the procedure for their fulfilment; rights, duties and responsibilities of the guarantor and creditor; conditions of occurrence of a guarantee case; term of payments in case of warranty event; the amount and procedure for payment of the guarantee fee to the state budget; the procedure for repayment of debts to the state for the fulfillment of warranty obligations; guarantee period.

{Part three, Article 17 has been supplemented with a new paragraph under Law No. 1079-IX of 15 December 2020}

A mandatory condition for the provision of a state guarantee on a portfolio basis is the payment by a business entity – a resident of Ukraine of a fee for such a guarantee, as well as the property or other security provision for debt obligations under a loan agreement with a creditor bank.

{Part three, Article 17 has been supplemented with a new paragraph under Law No. 1079-IX of 15 December 2020}

A mandatory condition for providing a state (local) guarantee, in addition to state guarantees on a portfolio basis, is the conclusion of an agreement between the Debt Agency of Ukraine (relevant local financial authority) and the business entity to repay the business entity's debt to the state, the Autonomous Republic of Crimea, regional council or city territorial community) for the fulfilment of guarantee obligations. The essential terms of such an agreement should be the obligations of the business entity:

{Paragraph 2, part 3 of Article 17 as amended by Laws No. 293-IX of 14 November 2019, No. 1079-IX of 15 December 2020}

make a fee for providing a state (local) guarantee;

provide property or other security for the performance of obligations under the guarantee;

reimburse the costs of the state (local) budget related to the implementation of guarantee obligations;

pay a penalty for late reimbursement of these costs. The penalty is accrued for each day of delay in payment of debt in national currency at the rate of 120 per cent of the annual discount rate of the National Bank of Ukraine at the official exchange rate of hryvnia to foreign currency set by the National Bank of Ukraine on the day of penalty;

give the guarantor the right to contractual write-off of funds by the bank from the accounts of the business entity in favor of the guarantor.

{Part 3 of Article 91 as revised by Law No. 3614-VI dated 07 July 2011}

4. State (local) guarantees are not provided to secure the debt obligations of economic entities if the direct source of repayment of loans (loans) provides funds from the state (local) budget (except for debt obligations arising from loans (loans) from foreign states, foreign financial institutions and international financial organisations for the implementation of investment projects, including lending in accordance with paragraph 1, part four, Article 30 of this Code).

{Part 4 of Article 17 as revised by Law No. 3614-VI of 7 July 2011; as amended by Law No. 293-IX of 14 November 2019}

5. Business entities in respect of which a decision is made to provide loans (borrowings) attracted by the state (Autonomous Republic of Crimea, regional council or city territorial community), or state (local) guarantees, except for state guarantees on a portfolio basis, are obliged provide the property or other security for the fulfilment of obligations and pay to the State Budget of Ukraine (relevant local budget) a fee for their receipt in the amount established by the Cabinet of Ministers of Ukraine (Verkhovna Rada of the Autonomous Republic of Crimea, regional or city council), unless otherwise provided by the law щт еру State budget of Ukraine (decision on the local budget).

{Part five of Article 17 as amended by Laws No. 3614-VI of 07 July 2011, No. 79-VIII of 28 December 2014, No. 2621-VIII of 22 November 2018, No. 1081-IX of 15 November 2020}

6. The amount and type of property security of economic entities in charge of state (municipal) property shall be determined by the Cabinet of Ministers of Ukraine in respect of state property (the Verkhovna Rada of the Autonomous Republic of Crimea – in respect of property of the Autonomous Republic of Crimea, regional and city council – municipal property).

{Part six of Article 17 as amended by Laws No. 3614-VI of 07 July 2011, No. 2621-VIII of 22 November 2018}

7. Payments related to the fulfilment of guarantee obligations of the state (Autonomous Republic of Crimea, regional council or city territorial community) shall be made in accordance with the relevant agreements regardless of the amount of funds specified for this purpose in the law on the State Budget of Ukraine. local budget), in the same manner as defined in part six of Article 16 of this Code, and are reflected as the provision of loans from the budget in relation to entities whose obligations are guaranteed.

{Part 7 of Article 17 as amended by Law No. 2621-VIII of 22 November 2018}

8. In case of fulfilment by the state (the Autonomous Republic of Crimea, regional council or city territorial community) of guarantee obligations to creditors by making payments at the expense of the state (local) budget or by concluding agreements with such creditors on restructuring of amounts, which return is guaranteed, business entities which obligations are guaranteed, from the moment of such execution there is an overdue debt to the state (Autonomous Republic of Crimea, regional council or city territorial community) on credits (loans) attracted under state (local) guarantees, in the amount of actual expenditures of the state (local) budget and/or such restructured amounts, and the rights of the creditor and the right to demand from such business entities repayment of debts in the manner prescribed by law to the state (Autonomous Republic of Crimea, regional council or city territorial community), if such rights were not provided by the relevant agreements.

{Paragraph 1, Part 8 of Article 17 as amended by Law No. 2621-VIII of 22 November 2018}

If the agreement concluded with the business entity provides for the obligations of such entity to repay and service loans (borrowings) raised by the state (Autonomous Republic of Crimea, regional council or city territorial community), non-performance or improper performance of such obligations under the agreement entails the transfer to the state (Autonomous Republic of Crimea, regional council or city territorial community) of the right to collect overdue debt in full, regardless of the state (Autonomous Republic of Crimea, regional council or city territorial community) obligations under such credits (loans).

{Paragraph 2, Part 8, Article 17 as revised by Law No. 2621-VIII of 22 November 2018; as amended by Law No.293-IX of 14 November 2019}

9. Overdue debt of the business entity to the state (Autonomous Republic of Crimea, regional council or city territorial community) on a loan (loan) attracted by the state (Autonomous Republic of Crimea, regional council or city territorial community) or under a state (local) guarantee, as well as a loan from the budget (including payment for the use of such loans (loans) and interest) is collected from such entity by the tax authorities, which are the bodies to collect such debt in the manner prescribed by the Tax Code of Ukraine or other law, including repayment of such debt at the expense of the property of this business entity.

{Paragraph one, part nine, Article 17 as amended by Laws No. 2856-VI of 23 December 2010, No. 2621-VIII of 22 November 2018}

The limitations does not apply to claims for such debt repayment of an economic entity to the state (Autonomous Republic of Crimea, regional council or city territorial community).

{Paragraph 1, Part 9 of Article 17 as amended by Law No. 2621-VIII of 22 November 2018}

In the event of a bankruptcy case of an economic entity, all scheduled payments to repay the loan at the time of the case initiation are considered overdue.

{Part nine of Article 17 has been supplemented with paragraph three under Law No. 2646-VIII of 06 December 2018}

In the case of providing a state (local) guarantee to ensure partial debt obligations fulfilment of economic entities, the tax authorities collect the entire amount of overdue debt on such a credit (loan) with subsequent transfer of the amount collected to the creditor in proportion to the unsecured part of the credit (loan).

{Part nine of Article 17 has been supplemented with paragraph four under Law No. 2646-VIII of 06 December 2018}

Overdue debts of economic entities to the state and to the creditor bank on loans raised under the state guarantee on a portfolio basis shall be recovered from such entities by the creditor bank in accordance with the procedure established by the legislation on management of troubled assets in Ukrainian banks and the relevant transaction. providing a state guarantee on a portfolio basis, with the subsequent transfer of a proportional share to repay the debt to the state.

{Part 9 of Article 17 has been supplemented with paragraph 5 under Law No. 1079-IX of 15 December 2020}

10. If regional council or city territorial community is refused to collect debts to the state (Autonomous Republic of Crimea, regional council or city territorial community) on loans (borrowings) attracted by the state (Autonomous Republic of Crimea by a court decision the state (Autonomous Republic of Crimea, regional council or city territorial community) or under the state (local) guarantee, as well as on a loan from the budget, the tax authorities appeal it in the manner prescribed by law.

{Part 10 of Article 17 as amended by Laws No. 1800-VIII of 21 December 2016, No. 1081-IX of 15 December 2020}

11. The Debt Agency of Ukraine has the right to involve business entities for the representation of public authorities in courts in cases of debt collection to the state on credits (loans) raised by the state or under state guarantees, as well as on loans from the budget, including bankruptcy process, which recovery of the tax authorities refused.

The Debt Agency of Ukraine pays for such services of economic entities at the expense of the state budget within the relevant budget allocations.

{Part 11 of Article 17 as amended by Law No. 293-IX of 14 November 2019}

12. The Debt Agency of Ukraine has the right to sell the right to demand repayment of overdue debt to the state on credits (loans) raised by the state or under state guarantees at open auctions, as well as on budget loans in the manner prescribed by the Cabinet of Ministers of Ukraine.

The Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local councils may establish a procedure for the sale of rights to repay overdue debts for more than three years on credits (loans), as well as loans from relevant local budgets in compliance with the Cabinet of Ministers of Ukraine.

{Part 12 of Article 17 as amended by Law No. 293-IX of 14 November 2019}

13. Restructuring of debts of business entities to the state (Autonomous Republic of Crimea, regional council or city territorial community) on loans (borrowings) involved by the state (Autonomous Republic of Crimea, regional council or city territorial community) or under state (local) guarantors is prohibited. , on loans from the budget, except for deferred payment during the rehabilitation of such an entity with the participation of an investor who assumes joint and several obligations to repay such debt, for a period not exceeding three years on the basis of an agreement concluded between such business entity, investor and tax authority. In this case, the amount of interest accrued as a result of default by the borrower of such obligations on the restructured amount of debt is written off.

{Part 13 of Article 17 as amended by Law No. 2621-VIII of 22 November 2018}

14. It is prohibited to write off debts of business entities to the state (Autonomous Republic of Crimea, regional council or city territorial community) on loans (borrowings) attracted by the state (Autonomous Republic of Crimea, regional council or city territorial community) or under state (local) guarantees, loans from the budget, except for debts of business entities, duly declared bankrupt, claims for repayment of which were not satisfied due to the insufficiency of their assets and in respect of which the state registration of termination of the legal entity in connection with the recognition of its bankruptcy, as well as in addition to the debt, the recovery of which the court decided not in favour of the state, which has entered into force, and/or the recovery of which in court is impossible or impractical. The procedure for writing off such debts is determined by the Cabinet of Ministers of Ukraine.

{Part 14 of Article 17 as amended by Law No. 2621-VIII of 22 November 2018}

15. During the term of the local guarantee agreement, the Verkhovna Rada of the Autonomous Republic of Crimea, regional councils and city councils shall provide the relevant decision on the local budget funds for the fulfilment of guarantee obligations for payments due in the relevant budget period. The following funds are provided:

{Paragraph one, part fifteen, Article 17 as amended by Laws No. 3614-VI of 07 July 2011, No. 2621-VIII of 22 November 2018}

in respect of secured by agreements, for which a guarantee case has already occurred, in the amount equal to the amount of payments under these agreements;

for other guaranteed agreements – not less than 50 per cent of the amounts of payments under these agreements.

16. It is prohibited to provide state (local) guarantees to an economic entity that has overdue debt to the state (Autonomous Republic of Crimea, regional council or city territorial community) on a credit (loan) attracted by the state (Autonomous Republic of Crimea, regional council or city territorial community) or under a state (local) guarantee, for a loan from the budget (including payment for the use of such loans (loans) and interest), other debt to repay a previously obtained credit (loan) in a financial institution or tax debt to the state (local) budget .

{Article 17 has been supplemented with part 16 under Law No. 2621-VIII of 22 November 2018}

{Article 10 amended under Law No. 642-IX of 02 June 2020}

Article 18. Maximum amounts of state (local) debt and state (local) guarantees

{Title of Article 16 as amended by Law No. 3614-VI dated 7 July 2011}

1. {Temporarily, from the date of entry into force of Law No. 553-IX of 13 April 2020 to January 1, 2021, the provisions of part one, Article 18 shall not apply to determine the maximum amount of debt guaranteed by the state and the maximum amount of state guarantees - see clause 2, section II of the Law No. 553-IX of 13 April 2020} The maximum amount of state (local) debt and guaranteed by the state (Autonomous Republic of Crimea, regional council or city territorial community) debt, the maximum amount of state (local) guarantees are determined for each budget period by the law on the State Budget of Ukraine (decision on the local budget).

{Paragraph 1, Part 1, Article 18 as amended by Law No. 293-IX of 14 November 2019}

{Paragraph 2, part 1 of Article 18 is suspended for 2021 under Law No. 1082-IX of 15 December 2020} The maximum amount of state guarantees may not exceed 3 per cent of the planned revenues of the general fund in the state budget.

{Part one of Article 14 has been supplemented with paragraph two under Law No. 2646-VIII of 06 December 2018}

{Part 1, Article 18 as amended by Law No. 79-VIII of 28 December 2014}

2. {Part 2 of Article 18 has been suspended for 2021 under Law No. 1082-IX of 15 December 2020} The total amount of public debt and state-guaranteed debt at the end of the budget period may not exceed 60 per cent of the annual nominal volume of gross domestic product of Ukraine.

In case of expected exceeding of this limit value, the Cabinet of Ministers of Ukraine shall immediately apply to the Verkhovna Rada of Ukraine for permission to temporarily exceed this limit value and submit for approval a plan of measures to bring the total public debt and state-guaranteed debt to the established requirements.

{Paragraph 2, part 2 of Article 18 as revised by Law No. 79-VIII of 28 December 2014}

3. The total amount of local debt and debt guaranteed by the Autonomous Republic of Crimea, regional council or city territorial community (excluding guarantee obligations arising from credits (loans) from international financial organisations) as of the end of the budget period may not exceed 200 per cent (400 per cent for the city of Kyiv) of the average annual forecast revenue of the development budget (excluding the volume of local borrowings and capital transfers (subventions) from other budgets), determined in accordance with the indicators for the next two budget periods in the forecast of the local budget.

{Paragraph one, part three of Article 18 as amended by Laws No. 3614-VI of 07 July 2011, No. 2621-VIII of 22 November 2018, No. 2646-VIII of 06 December 2018, No. 1081-IX of 15 December 2020}

In case of expected exceeding of this limit value, the local financial body shall immediately apply to the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant regional or city council for permission to temporarily exceed this limit value and submit for approval a plan of measures to bring such total debt in line with this Code. subject to prior agreement with the Ministry of Finance of Ukraine.

{Paragraph 2, Part 3, Article 18 as revised by Law No. 212-VIII of 02 March 2015; as amended by Law No. 2621-VIII of 22 November 2018}

4. In order to ensure compliance with the limits of state (local) debt and state (local) guarantees, the Debt Agency of Ukraine shall maintain the Register of State Debt and State-Guaranteed Debt, the Register of State Guarantees, and the Ministry of Finance of Ukraine shall maintain the Register of Local Borrowings and Local Guarantees. Information from the relevant registers is published monthly on the official websites of the Debt Agency of Ukraine and the Ministry of Finance of Ukraine.

{Paragraph 8, Part 4 of Article 18 as revised by Law No.293-IX dated 14 November 2019}

The Register of Public Debt and State-Guaranteed Debt is an information system of debt and guarantee obligations of the state, which includes the terms of credit agreements and the issuance of government securities and the conditions of state guarantees, information on the state of servicing and repayment of public debt.

The Register of State Guarantees is an information system containing information on state guarantees provided during the budget period.

The Register of Local Borrowings and Local Guarantees is an information system containing information on local borrowings and local guarantees.

{Article 18 has been supplemented with Part 4 under Law No. 3614-VI dated 7 July 2011}

Chapter 4. BUDGET MAKING PROCESS AND ITS PARTICIPANTS

Article 19. Stages and participants of the budget making process

1. The stages of the budget making process are the following:

1) preparation and consideration of the Budget Declaration (local budget forecast) and decision-making on them;

2) drafting budgets;

3) draft consideration and adoption of the law on the State Budget of Ukraine (decision on the local budget);

4) budget execution, including amendments to the law on the State Budget of Ukraine (decision on the local budget);

5) report preparation and consideration on budget execution and decision-making on it.

{Part 1 of Article 19 as revised by Law No. 2646-VIII of 06 December 2018}

2. At all stages of the budget process, control over compliance with budget legislation, audit and evaluation of the effectiveness of management of budget funds is performed in accordance with the law.

3. Participants in the budget process are bodies, institutions and officials endowed with budgetary powers (rights and responsibilities for the management of budget funds).

Article 20. Application of the programme-target method in the budget process

1. The programme-target method is used in the budget process at the level of the state budget and at the level of local budgets.

{Paragraph 1 of Article 20 as amended by Law No. 2233-VIII of 7 December 2017}

2. Special components of the programme-target method in the budget process are budget programmes, responsible executors of budget programmes, passports of budget programmes, performance indicators of budget programmes.

3. Budget programmes are formed by the main managers of budget funds during the preparation of proposals for the Budget Declaration (local budget forecast) and budget request, taking into account plans for the medium term, forecast and programme documents of economic and social development.

{Part 3 of Article 20 as revised by Law No. 2646-VIII of 06 December 2018}

4. The responsible executor of budget programmes is determined by the main administrator of budget funds in coordination with the Ministry of Finance of Ukraine (local financial body). The responsible executor of budget programmes may be the key spending unit for budget programmes, which implementation is provided by his staff, and/or the manager of lower-level budget funds, which ensures the implementation of budget programmes in the system of the key spending unit.

{Paragraph 1, part 4 of Article 20 as amended by Law No. 2646-VIII of 06 December 2018}

The enforcement officer of budget programmes in the process of their implementation ensures the targeted and effective use of budget funds throughout the implementation of the relevant budget programmes within the defined budget allocations.

5. Performance indicators of the budget programme are used to assess the effectiveness of the budget programme in the use of budget funds and include quantitative and qualitative indicators that determine the outcome of the budget programme, characterise its implementation, the degree of achievement of public policy objectives, which formation and/or implementation is provided by the chief administrator of budget funds, achievement of the purpose of the budget programme, performance of tasks of the budget programme, cover volume and quality of rendering of public services.

The list of performance indicators for each budget programme is developed by the main managers of budget funds in accordance with the regulations of the Ministry of Finance of Ukraine.

The effective indicators of the budget programme shall be confirmed by official state statistical, financial and other reporting, data of accounting, statistical and internal economic (management) accounting.

{Part 5 of Article 20 as revised by Law No. 2646-VIII of 06 December 2018}

6. At all stages of the budget making process, its participants evaluate the effectiveness of budget programmes within their powers, which includes measures for monitoring, analysis and control over the targeted and effective use of budget funds. Evaluation of the budget programmes effectiveness is based on monitoring data, analysis of performance indicators for budget programmes, as well as other information contained in budget requests, estimates, passports of budget programmes, reports on the implementation of estimates and reports on the implementation of budget programmes passports. Organisational and methodological principles for assessing the budget programmes effectiveness by the main managers of budget funds are determined by the Ministry of Finance of Ukraine.

{Paragraph 1, part 6 of Article 20 as amended by Law No. 2646-VIII of 06 December 2018}

The results of the evaluation for the effectiveness of budget programmes (including the conclusions of the executive bodies authorised to monitor compliance with budget legislation and the conclusions of the Accounting Chamber) are the basis for decisions to amend the budget allocations of the current budget period. the planned budget period and the Budget Declaration (local budget forecast), including the suspension of the relevant budget programmes implementation.

{Paragraph 2, part 6 of Article 20 as revised by Law No. No. 2646-VIII of 06 December 2018}

7. According to budget programmes, the implementation of measures requiring regulatory definition for the mechanism of budget funds use, the main managers of state budget funds develop draft procedures for the use of state budget funds (including budget programmes first defined by the law on the State Budget of Ukraine) and their approval within 30 days from the date of entry into force of the law on the State Budget of Ukraine. According to the decision of the Cabinet of Ministers of Ukraine (in the form of a protocol decision) the procedures for the use of state budget funds are approved by the Cabinet of Ministers of Ukraine or the key spending unit in agreement with the Ministry of Finance of Ukraine. The Committee on Budget of the Verkhovna Rada of Ukraine shall be informed about the approval of such procedures.

{Procedures for the use of state budget funds: Resolutions of the Cabinet of Ministers No. 1086 of 24 December 2019, No. 29 of 24 January 2020, No. 131 of 19 February 2020, No. 138 of 26 February 2020, No. 139 of 26February 2020, No. 140 of 26 February 2020, No. 148 of 26 February 2020, No. 169 of 03 March 2020, No. 204 of 03 March 2020, No. 536 of 19 June 2020, No. 747 of 26August 2020, No. 947 of 09 October 2020, No. 20 of 13 January 2021, No. 153 of 24 February 2021, No. 289 of 31 March 2021, No. 345 of 14 April 2021}

{Paragraph 1, part 7 of Article 20 as amended by Law No. 2646-VIII of 06 December 2018}

{Paragraph 2, part 7 of Article 20 as amended by Law No. 2646-VIII of 06 December 2018}

If the budget programme implementation continues in subsequent budget periods, the procedure for using budget funds under such budget programme (taking into account changes to this procedure, if necessary) continues until the completion of its implementation.

The procedure for using budget funds shall include:

goals and directions for budget funds using;

responsible manger of the budget programme, grounds and/or criteria for involving budget recipients to the budget programme;

tasks of the key spending unit, managers of lower level budget funds (budget funds recipients ), ensuring the budget programme implementation, with the definition of the procedure for reporting on its implementation (including performance indicators) and influence measures in case of non-implementation;

if necessary, the procedure, terms and grounds, as well as the criteria for expenditures distribution (redistribution) between administrative-territorial units in terms of lower-level budget funds managers and budget funds recipients, taking into account the relevant regulations;

competitive requirements for investment projects, including the procedure and criteria for their selection, as well as criteria and conditions for determining the executors in such projects;

{Paragraph 9, part 7 of Article 20 as amended by Law No. 1789-VIII of 20 December 2016}

criteria and conditions for selecting economic entities to which state support is provided from the budget, as well as determination of the amount for such support;

conditions and criteria for competitive selection of borrowers and projects (programmes) for which implementation loans are provided from the budget; conditions for granting loans from the budget and their repayment, including provisions for monitoring their repayment;

provisions on the need to transfer funds under budget programmes, which provide for the subventions provision from the state budget to local budgets;

ways to repay budget debt, if any;

requirements for the need to reflect in the primary accounting and accounting of received (created) current and non-current assets by budgetary institutions and budget funds recipients, including received (created) as a result of centralised activities;

if necessary – provisions for the purchase of goods, works and services, determination of conditions and terms of delivery and settlements;

other provisions on the budget programme features.

8. The key spending unit shall develop and approve the budget programme passport in coordination with the Ministry of Finance of Ukraine (local financial authority) within 45 days from the date of entry into force of the Law on the State Budget of Ukraine (decision on the local budget).

{Paragraph 1, part 8 of Article 20 as amended by Law No. 2646-VIII of 06 December 2018}

Rules of creation of passports of budget programmes and reports on their execution are established by the Ministry of Finance of Ukraine.

9. The programme-target method in the budget process provides for the application of medium-term budget planning, in which the budget declaration (local budget forecast) is drawn uArticle

{Part 9 of Article 20 as revised by Law No. 2646-VIII of 06 December 2018}

10. In order to increase the efficiency and effectiveness of the use of state budget funds, the Cabinet of Ministers of Ukraine shall conduct reviews of state budget expenditures. Such reviews provide the analysis of the effectiveness of public policy in the relevant field of activity at the expense of the state budget within certain budget programmes, as well as assessment of efficiency, effectiveness and economic feasibility of the relevant state budget expenditures.

Organisational and methodological principles of conducting reviews for state budget expenditures are determined by the Ministry of Finance of Ukraine.

Based on the results of such reviews, the Cabinet of Ministers of Ukraine makes a decision, which is the basis for making appropriate proposals to the draft state budget for the planned budget period and to the Budget Declaration.

{Article 20 has been supplemented with Part 4 under Law No. 2646-VIII dated 6 December 2018}

{Article 21 has been deleted under Law No. 2639-VIII of 6 December 2018}

Article 22. Budget managers

1. According to the scope of powers granted, budget managers are divided into key spending units and lower-level budget managers.

{Part 1 of Article 22 as amended by Law No. 2646-VIII dated 6 December 2018}

2. Key spending units of budget funds may be only:

1) for budgetary purposes defined by the law on the State Budget of Ukraine – institutions authorised to ensure the activities of the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine in the person of their heads; Ministries, the National Anti-Corruption Bureau of Ukraine, the Security Service of Ukraine, the Constitutional Court of Ukraine, the Supreme Court, higher specialised courts, the High Council of Justice and other bodies directly designated by the Constitution of Ukraine, represented by their heads, as well as the State Judicial Administration of Ukraine, National Academy of Sciences of Ukraine , National Academy of Agrarian Sciences of Ukraine, National Academy of Medical Sciences of Ukraine, National Academy of Pedagogical Sciences of Ukraine, National Academy of Legal Sciences of Ukraine, National Academy of Arts of Ukraine, other institutions authorised by law or the Cabinet of Ministers of Ukraine to implement state policy in the relevant field managers;

{Сlause 1, part 2 of Article 22 as amended by Laws No. 1698-VII of 14 October 2014, No. 1800-VIII of 21 December 2016, No. 2621-VIII of 22 November 2018, No. 1081-IX of 15 December 2020}

2) by budgetary purposes determined by the decision on the budget of the Autonomous Republic of Crimea – authorised legal entities (budgetary institutions) providing the Verkhovna Rada of the Autonomous Republic of Crimea and the Council of Ministers of the Autonomous Republic of Crimea, as well as ministries and other authorities of the Autonomous Republic of Crimea their leaders;

3) by budget allocations defined by other decisions on local budgets – local state administrations, executive bodies and offices of local councils (secretariat of the Kyiv City Council), structural subdivisions of local state administrations, executive bodies of local councils represented by their heads.

{Сlause 3, part 2 of Article 22, as amended in accordance with the Laws No. 3614-VI of 07 July 2011, No. 4875-VI of 05 June 2012, No. 1081-IX of 15 December 2020}

3. Key spending units of the State Budget of Ukraine shall be determined in accordance with clause 1 of part two of this Article and approved by the law on the State Budget of Ukraine by establishing their budget allocations.

4. The main managers of local budgets shall be determined by the decision on the local budget in accordance with clauses 2 and 3, part two of this article.

5. Chief administrator of budget funds:

1) develops a plan of activities for the medium term (including measures for the investment projects implementation) taking into account the Budget Declaration (local budget forecast), the law on the State Budget of Ukraine (local budget decision), forecast and programme documents of economic and social development;

{Сlause 1, part 5 of Article 22 as amended by Law No. 2646-VIII of 06 December 2018}

2) organises and provides drafting of the budget and budget request and submits them to the Ministry of Finance of Ukraine (local financial authority) on the basis of the Budget Declaration (local budget forecast) and activity plan for the medium term;

{Сlause 2, Part 5, Article 22 as amended by Law No. 2646-VIII dated 6 December 2018}

3) receives budget assignments by approving them in the law on the State Budget of Ukraine (decision on the local budget); decides on the delegation of powers to implement the budget programme by managers of lower level budget funds and/or recipients of budget funds, distributes and brings to them in the prescribed manner the amount of budget allocations;

4) approve the estimates of managers of the lower level budget funds (plans for the use of budget funds of budget funds recipients), unless otherwise provided by law;

5) develops drafts procedures for the use of state budget funds under budget programmes provided for in part seven of Article 20 of this Code;

6) develops and approves passports of budget programmes and prepares reports on their implementation, while ensuring:

{Paragraph 1, clause 6, Part 5, Article 22 as amended by Law No. 2646-VIII dated 6 December 2018}

timeliness of approval for passports of budget programmes, reliability and completeness of the information contained therein;

compliance of the content of passports of budget programmes with the law on the State budget of Ukraine (the decision on the local budget) and/or the schedule of the budget (except for cases of modification of passports of budget programmes in case of modification of the special fund of the budgetary institutions), procedures for the use of budget funds and rules for compiling passports of budget programmes and reports on their execution;

confirmation of effective indicators for budget programmes by official state statistical, financial and other reporting, data of accounting, statistical and internal economic (management) accounting, introduction of the form of internal economic (administrative) accounting for collection of such information.

{Сlause 6, part 5 of Article 22 as amended by Law No. 79-VIII of 28 December 2014}

6-1) organises and monitors the implementation of budget programmes, evaluates their effectiveness;

{Part 5 of Article 22 has been supplemented with Clause 6-1 under Law No. 2646-VIII dated 06 December 2018}

7) manages budget funds within the limits of its established budgetary powers, ensuring effective, efficient and targeted use of budget funds, organisation and coordination of the work of lower-level budget managers and recipients of budget funds in the budget process;

{Сlause 7, Part 5, Article 22 as amended by Law No. 2646-VIII dated 6 December 2018}

8) exercises control over the timely return of funds to the budget in full provided for budget lending operations, as well as credits (loans) received by the state (Autonomous Republic of Crimea, regional council or city territorial community), and funds provided for state (local) guarantees;

{Clause 8, part five, Article 22 as amended by Law No. 1079-IX of 15 December 2020}

9) exercises control over the completeness of revenues, budget commitments by managers of lower-level budget funds and budget funds recipients and their spending of budget funds;

{Clause 1, Part 5, Article 22 as amended by Law No. 1081-IX of 15 December 2020}

10) ensures the organisation and maintenance of accounting, preparation and submission of financial and budgetary reports in the manner prescribed by law;

11) ensure the availability of information on the budget in accordance with the legislation and this Code.

6. The manager of budget funds may authorise the recipient of budget funds to implement the measures provided for in the budget programme by informing on the budget allocations and providing the relevant budget funds (on a non-refundable or repayable basis). The budget funds recipient uses such funds in accordance with the requirements of budget legislation based on the plan for the use of budget funds, which contains the distribution of budget allocations.

{Paragraph 1, part 6 of Article 22 as revised by Law No. No. 2646-VIII of 06 December 2018}

Criteria for determining the budget funds recipient are established by the Cabinet of Ministers of Ukraine taking into account the areas, experience and results of activities, financial and economic justification for the implementation of the budget programme and the application of contractual terms.

7. Managers of budget funds, in which operational management or economic management are the objects in respect of which the purchase of energy service, have the right to make long-term obligations for energy service based on the essential terms of the energy service agreement approved by the central executive body implementing state policy in the field of efficient use of fuel and energy resources, energy saving, renewable energy sources and alternative fuels (for state-owned objects), the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council (for communal property).

{Article 22 is supplemented by part 7 under Law No. 328-VIII of 09 April 2015; as amended by Law No. 2621-VIII of 22 November 2018}

Article 23. Budget assignments and allocations

1. Any budget commitments and payments from the budget shall be made only in the presence of the relevant budget purpose, unless otherwise provided by the law on the State Budget of Ukraine.

{Part 1 of Article 23 as amended by Law No. 163-VII of 04 April 2013}

2. Budget assignments shall be established by the law on the State Budget of Ukraine (decision on the local budget) in accordance with the procedure established by this Code.

3. If of circumstances requires smaller budget allocations to the main managers of budget funds in the process of budget execution the change, the Ministry of Finance of Ukraine (local financial body) prepares proposals to reduce the relevant budget of the State Budget of Ukraine (local budget). The Cabinet of Ministers of Ukraine (Council of Ministers of the Autonomous Republic of Crimea, local state administration, executive body of the relevant local council) submits to the Verkhovna Rada of Ukraine (Verkhovna Rada of the Autonomous Republic of Crimea, relevant local council) proposals to reduce the relevant budget allocations Ukraine (local budget) within two weeks. Proposals to reduce budget assignments for the maintenance of courts, other bodies and institutions of the justice system shall be approved by the Cabinet of Ministers of Ukraine with the High Council of Justice. Reduction of budget assignments for the implementation of medium-term obligations in the field of health care, defined by the law on the State Budget of Ukraine for the relevant period, is not allowed.

{Part 3 of Article 23 as amended by Laws No. 1800-VIII of 21 December 2016, No. 1081-IX of 15 December 2020}

4. Expenditures of the special budget fund have a permanent budget purpose, which gives the right to spend them exclusively within and at the expense of actual revenues of the special budget fund (subject to the requirements of part two of Article 57 of this Code), if this Code and/or law on the State Budget of Ukraine (decision on the local budget) is not established otherwise.

5. Proposals for amendments to budget assignments shall be submitted and considered in accordance with the procedure established for drafting the budget. Expenditures in accordance with the amendments to budget assignments shall be made only after the entry into force of the law (decision of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council), which amended such amendments, except as provided by this Code.

6. If after the adoption of the law on the State Budget of Ukraine (decision on the local budget) the authority to perform functions, tasks or provide services for which the budget is assigned, is transferred in accordance with the law from one key spending unit to another key spending unit, budget allocation is not terminated and is used to perform the same functions, tasks or services by another key spending unit to whom it is entrusted. Transfer of budget assignments in the case provided for in this part of the article is carried out by the decision of the Cabinet of Ministers of Ukraine (Council of Ministers of the Autonomous Republic of Crimea, local state administration, executive body of the relevant local council), agreed with the Verkhovna Rada Committee on Budget. Republic of Crimea, local council), in the manner prescribed by the Cabinet of Ministers of Ukraine. In the case of transfer of budget allocations for national expenditures and lending (except for intergovernmental transfers) increase expenditures on budget programmes related to the functioning of public authorities, labour costs of employees of budgetary institutions by reducing the corresponding budget allocations that have the same target restriction may be provided.

{Part six of Article 23 as amended by the Laws No. 2592-VI of 07 October 2010, No. 2856-VI of 23 December 2010; as revised by Law No. 176-VIII of 10 February 2015; as amended by Law No. 2621-VIII of 22 November 2018}

7. Within the total amount of budget allocations under the budget programme separately for the general and special budget funds, the Ministry of Finance of Ukraine (local financial body) upon redistribution of the key spending unit shall redistribute budget allocations approved in the budget schedule and budget, in terms of economic classification budget, as well as in terms of classification of budget lending – for the provision of loans from the budget.

{Part seven of Article 23 as amended by Law No. 4318-VI of 12 January 2012}

8. Within the total budget allocations of the key spending unit, redistribution of budget expenditures and provision of budget loans under budget programmes, including the budget reserve fund, additional grants and subventions (taking into account part six, Article 108 of this Code), as well as the budget programme development expenditures by reducing other expenditures (separately for general and special budget funds) are carried out by the decision of the Cabinet of Ministers of Ukraine (Council of Ministers of the Autonomous Republic of Crimea, local state administration, executive body of the relevant local council), agreed with the Verkhovna Rada Committee on Budget (by the relevant commission of the Verkhovna Rada of the Autonomous Republic of Crimea, local council), in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

{Part eight of Article 23 as amended by Laws No. 2856-VI of 23 December 2010, No. 4318-VI of 12 January 2012, No. 293-IX of 14 November 2019}

{Part nine of Article 23 has been deleted under the Law No. 293-IX of 14 November 2019}

10. Changes in the amount, purpose and time constraints of budget allocations, except as provided by this Code, shall be made only in the presence of the relevant provision in the law on the State Budget of Ukraine (decision on the local budget).

{Regarding the application of the norms of the part ten, Article 23, see additionally Law No. 553 of 13 April 2020, as amended by Law No. 909-IX of 17 September 2020}

11. It is prohibited to increase budget allocations for general and special funds of the state budget (local budget) without Making amendments to the Law on the State Budget of Ukraine (decision on the local budget) for:

remuneration of budgetary institutions employees by reducing other expenses;

expenditures on budget programmes related to the functioning of public authorities (authorities of the Autonomous Republic of Crimea and local governments), by reducing expenditures on other budget programmes.

{Regarding the application of the norms of the part eleven, Article 23, see additionally Law No. 553 of 13 April 2020, as amended by Law No. 909-IX of 17 September 2020}

12. All budget assignments shall cease to be valid after the end of the budget period, except as provided by this Code.

13. The Cabinet of Ministers of Ukraine sets the maximum amounts of expenditures of budgetary institutions for the purchase of cars, furniture, other equipment and facilities for administrative purposes.

14. The amount of expenditures for energy service for the relevant budget period is established by the law on the State Budget of Ukraine (decision on local budget) within the budget allocations of the relevant key spending unit in the amount determined in accordance with the terms of the energy service agreement. and energy sources in respect of which energy service is provided, in relation to the amount of expenditures required to pay for the average annual consumption of such utilities and energy for the last three years preceding the year of introduction of energy service. The specified amount of expenditures is determined based on prices (tariffs) expected in the budget period for which budget assignments are set.

If the actual reduction of these expenditures in the reporting period is less than planned under the terms of the contract, the budget manager, redistributes budget allocations to increase expenditures for utilities and energy by reducing energy expenditures by the amount of the difference between the actual and planned reduction of these costs in the manner prescribed by part seven of this article.

If the reduction of these expenditures in the reporting period exceeds the planned, the manager of budget funds:

in the manner prescribed by part seven of this article, provides redistribution of budget allocations to increase expenditures for energy services and/or other expenditures in the proportions specified in the energy service agreement, by reducing expenditures for utilities and energy;

submits proposals to the relevant key spending unit to reduce the budget allocations for utilities and energy by the balance of the difference between the actual and planned reduction of these costs after the redistribution made in accordance with the paragraph four of this part in the prescribed manner for the preparation of proposals for making amendments to the Law on the State Budget of Ukraine.

{Article 23 has been supplemented with part 14 under Law No. 328-VIII of 09 April 2015}

15. Ifa violation of the terms of development or implementation of the state investment project is established after the adoption of the law on the State Budget of Ukraine during the budget period by the Interdepartmental Commission on State Investment Projects based on the results of monitoring the development and implementation of state investment projects , other state investment projects from one key spending units to another key spending unit, budget allocations for which are defined in the law on the State Budget of Ukraine. Transfer of budget allocations in the case provided for in this part of the article is carried out by the decision of the Cabinet of Ministers of Ukraine (prepared by the central executive body that ensures the formation of state policy in economic and social development, based on the decision of the Interdepartmental Commission on State Investment Projects); agreed with the Committee of the Verkhovna Rada of Ukraine on Budget, in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

{Article 23 has been appended with a Part 15 in line with Law No. 1789-VIII of 20 December 2016}

16. The amount of expenditures on medium-term obligations in the field of health care is separately determined by the law on the State Budget of Ukraine at the level of the relevant indicators of the Budget Declaration approved in the previous and/or current budget period, taking into account actually taken in previous and/or current budget periods of medium-term commitments, as well as unused appropriations for the implementation of programmes and the implementation of centralised health measures in previous and/or current budget periods.

Medium-term obligations by the central executive body ensuring the formation and implementation of state policy in the field of health care, or the person authorised to procure in the field of health care, is allowed for medicines, medical devices and auxiliary means to them included in the list of medicines, medical devices and auxiliaries purchased from the state budget for the implementation of programmes and implementation of centralised health care measures approved by the Cabinet of Ministers of Ukraine, as well as for services related to the supply and accompaniment of such medicines, medical devices and auxiliary means to them.

List of budget programmes, in which execution it is allowed to take medium-term obligations by the central executive body ensuring the formation and implementation of state policy in the field of health care, or the person authorised to procure in the field of health care, is determined by the law on the state budget of Ukraine for the relevant period, taking into account budget programmes for which in the previous and/or current periods the relevant medium-term commitments were actually made, as well as for which there are unused appropriations in previous and/or current budget periods.

{Article 23 has been appended with Part 16 under Law No. 1081-IX of 15 December 2020}

Article 24. Reserve budget

1. The reserve budget is formed for the implementation of contingencies which are not permanent and could not be foreseen during the draft budget. Procedure for spending funds from the reserve budget is determined by the Cabinet of Ministers of Ukraine.

The Cabinet of Ministers of Ukraine, Council of Ministers of the Autonomous Republic of Crimea, local State administrations, self-government executive authorities take the decision on allocation of funds from reserve budget.

3. {Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the rules of part three of Article 24 do not apply – see paragraph 2 Section II of the Law No. 553-IX of 13 April 2020} The reserve budget may not exceed one per cent of the expenditures in the general fund of the relevant budget.

4. The Cabinet of Ministers of Ukraine (Council of Ministers of the Autonomous Republic of Crimea, local state administrations and executive bodies of relevant local councils) shall report monthly to the Verkhovna Rada of Ukraine (Verkhovna Rada of the Autonomous Republic of Crimea and relevant local council) on expenditures of the reserve budget.

5. The reserve budget is provided mandatory in the State Budget of Ukraine. The decision on the need to create a reserve fund of the local budget is made by the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council.

Article 24-1. State Fund for Regional Development

1. State Fund for Regional Development is created as a part of the state budget.

{Paragraph 1, part 1 of Article 24-1 as amended by Law No. 1789-VIII of 20 December 2016}

{Paragraph 2, part 1, Article 24-1 has been suspended for 2021 under Law No. 1082-IX of 15 December 2020} {Paragraph 2, part 1, Article 24-1 has been suspended for 2020 under Law No. 294-IX of 14 November 2019} {Paragraph 2, part 1, Article 24-1 has been suspended for 2019 under Law No. 2629-VIII of 23 November 2018} {Paragraph 2, part 1, Article 24-1 has been suspended for 2018 under Law No. 2246-VIII of 07 December 2017} {Paragraph 2, part 1, Article 24-1 has been suspended for 2017 under Law No. 1801-VIII of 21 December 2016} {Paragraph 2, part 1, Article 24-1 has been suspended for 2016 under Law No. 928-VIII of 25 December 2015} When drawing up the Budget Declaration and the draft State Budget of Ukraine, the state fund for regional development is determined in the amount of not less than 1 per cent of the projected revenue of the general fund in the draft State Budget of Ukraine for the budget period.

{Paragraph 2, part 1 of Article 24-1 as amended by Law No. 1789-VIII of 20 December 2016, No. 2646-VIII of 06 December 2018}

2. Funds of the State Fund for Regional Development are directed to the implementation of investment programmes and regional development projects aimed at regional development and meet the priorities set out in the State Strategy for Regional Development and relevant regional development strategies.

At least 10 per cent of the funds of the state fund for regional development are provided for the implementation of investment programmes and regional development projects aimed at the development of regions in terms of sports infrastructure development.

{Part 2 of Article 24-1 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 118-VIII of 15 January 2015, No. 1789-VIII of 20 December 2016, No. 2621-VIII of 22 November 2018, No. 293-IX of 14 November 2019, No. 907-IX of 17 September 2020; under Law No. 1081-IX of 15 December 2020}

3. The Council of Ministers of the Autonomous Republic of Crimea, regional, Kyiv and Sevastopol city state administrations shall submit proposals with a list and description of investment programmes and regional development projects to the central executive body, which ensures the formation of state regional policy, by August 1 of the year preceding the planned year. formed in accordance with part two of this article, have been pre-competitively selected by regional commissions in accordance with the law (including programmes and projects for the development of sports infrastructure, agreed with the central executive body for state policy in the field of physical culture and sports) and can be implemented at the expense of the state fund of regional development in the next budget period.

{Paragraph 1, part 3 of Article 24-1 as amended by Laws No. 1789-VIII of 20 December 2016, No. 2621-VIII of 22 November 2018, No. 1081-IX of 15 December 2020}

The central executive body ensuring the formation of state regional policy, forms a commission for evaluation and selection of programmes and projects, which includes members of the Verkhovna Rada Committee on Budget by decision of this committee (at least 50 per cent of such commission). Such a commission evaluates and selects these programmes and projects based on the submitted proposals (except for proposals for programmes and projects agreed with the central executive body that ensures the formation of state policy in the field of physical culture and sports) on a competitive basis within the state fund regional development, defined by the Budget Declaration, in compliance with the following criteria for distribution between the Autonomous Republic of Crimea, oblasts and cities of Kyiv and Sevastopol:

{Paragraph 2, part 3 of Article 24-1 as amended by Laws No. 1789-VIII of 20 December 2016, No. 2621-VIII of 22 November 2018, No. 2646-VIII of 06 November 2018, No. 1081-IX of 15 December 2020}

80 per cent of the funds – according to the population living in the region;

20 per cent of funds – taking into account the level of socio-economic development of regions in accordance with the indicator of gross regional product per capita (for regions where this figure is less than 75 per cent of the average in Ukraine).

Based on the results of evaluation and compliance of the submitted investment programmes and regional development projects with the requirements of the legislation, the central executive body ensuring the formation of state regional policy submits a proposal for the distribution of funds of the state fund of regional development with a list of relevant programmes and projects for approval to the Cabinet of Ministers of Ukraine based on the decision of the relevant commission and taking into account programmes and projects agreed with the central executive body ensuring the policy in the field of physical culture and sports, by December 15, preceding the planned.

{Paragraph 5, part 3 of Article 24-1 as amended by Laws No. 1789-VIII of 20 December 2016, No. 2621-VIII of 22 November 2018, No. 1081-IX of 15 December 2020}

programmes and projects implemented at the expense of the state fund for regional development are subject to co-financing from local budgets in the amount of not less than 10 per cent.

{Paragraph 6, Part 3, Article 24-1 as amended by Law No. 1081-IX of 15 December 2020}

{Part three of Article 24-1 as revised by Law No. 77-VIII of 28 December 2014}

4. The procedure for preparation, evaluation and selection of investment programmes and regional development projects that can be implemented at the expense of the state fund for regional development, and the procedure for using such funds (including conditions for allocating part of local budgets) shall be determined by the Cabinet of Ministers of Ukraaine.

{Part 4 of Article 24-1 as amended by Law No. 5428-VI of 16 October 2012; as revised by Law No. 79-VIII of 28 December 2014; as amended by Laws No. 2621-VIII of 22 November 2018, No. 1081-IX of 15 December 2020}

5. The distribution of funds of the state fund for regional development by administrative-territorial units and investment programmes and projects of regional development shall be approved by the Cabinet of Ministers of Ukraine in coordination with the Verkhovna Rada Committee on Budget within two months from the entry into force of the State Budget Law.

{Article 24-1 has been supplemented with part 5 under Laws No. 79-VIII of 28 December 2014; as amended by Laws No. 2621-VIII of 22 November 2018, No. 1081-IX of 15 December 2020}

{The Code has been supplemented with Article 24-1 under Law No. 4318-VI of 12 January 2012}

Article 24-2. State Road Fund

1. The state road fund is created as a part of special fund of the state budget.

2. The sources of formation of the state road fund are the following:

1) state budget revenues determined by clauses 1-3, 6, 6-2, 6-3, 6-4 and 6-5 part three of Article 29 of this Code;

{Paragraph 1, part 2 of Article 24-2 as revised by Law No. 74-IX of 12 September 2019; as amended by Law No. 1081-IX of 15 December 2020}

2) state borrowings involved in accordance with paragraph 1, part three, Article 15 of this Code for the implementation of investment projects for the development of the network and public roads maintenance;

2-1) revenues received from borrowings raised under state guarantees for the development of the network and maintenance of public roads of state importance;

{Part 2 of Article 24-2 has been supplemented with clause 2-1 under Law No. 1081-IX of 15 December 2020}

3) other revenues specified by the law on the State Budget of Ukraine.

3. Funds of the state road fund are directed to:

1) financial support for construction, reconstruction, repair and maintenance of public roads of state importance and other measures specified in paragraph 1, part four, Article 3 of the Law of Ukraine "On Sources of Financing of the Road Industry of Ukraine" (not less than 5 per cent of which – for construction, reconstruction, repair and maintenance of artificial structures);

{Paragraph 1, part 3 of Article 24-2 as amended by Law No. 2621-VIII of 22 November 2018}

2) financial support for construction, reconstruction, repair and maintenance of public roads of local significance, streets and roads of municipal property in settlements (in the form of a subvention from the state budget to local budgets), at least 5 per cent of which – for construction, reconstruction, repair and maintenance of artificial structures);

{Paragraph 2, part 3 of Article 24-2 as amended by Law No. 2621-VIII of 22 November 2018}

3) fulfilment of debt obligations on borrowings received by the state or under state guarantees for the development of the network and maintenance of public roads;

4) financial support of measures to ensure road safety in accordance with state programmes.

4. Expenditures in the direction specified in paragraph 3 of part three of this article shall be made from the sources specified in paragraph 1 of part two of this article, in the amount provided in accordance with the terms of the relevant borrowings.

Funds of the state road fund, formed from the sources specified in paragraph 1, part two of this Article, except for funds sent in the direction specified in paragraph 3, part three of this Article, are distributed as follows:

60 per cent – in the direction specified in paragraph 1, part three of this Article;

35 per cent – in the direction specified in paragraph 2, part three of this Article;

5 per cent – in the direction specified in paragraph 4, part three of this Article.

If the total amount of actual receipts of sources specified in paragraph 1, part two of this Article exceeds the total amount of relevant indicators defined by the law on the State Budget of Ukraine, such excess shall be distributed in the manner prescribed by paragraphs two to five of this part of the article taking to account the requirements of part four, Article 23 of this Code. In this case, further distribution of these funds in the direction specified in paragraph 2, part three of this Article, is carried out in accordance with the requirements of part two Article 103-1 of this Code in the manner prescribed by part six, Article 108 of this Code.

{Part 4 of Article 24-2 has been supplemented with paragraph 6 under Law No. 293-IX of 14 November 2019}

{Part 4 of Article 24-2 as amended by Law No. 2233-VIII of 07 December 2017; as revised by Law No. 2621-VIII of 22 November 2018}

5. The list of objects of construction, reconstruction, capital and current average repair of public roads of state importance with indication of the amount of budget funds for financial support of such objects shall be approved by the Cabinet of Ministers of Ukraine.

{Part five of Article 24-2 as amended by Law No. 2233-VIII of 07 December 2017}

{The Code has been supplemented with Article 24-2 under Law No. 1763-VIII of 17 November 2016}

Article 24-3. State Fund for Radioactive Waste Management

1. The State Fund for Radioactive Waste Management is created as a part of the special fund of the State Budget of Ukraine.

2. The sources of formation of the State Fund for Radioactive Waste Management are the following:

1) receipts specified in paragraph 7-4 of part three of Article 29 of this Code;

2) other revenues provided by law.

{Paragraph 2, part two of Article 24-3 as amended by Law No. 293-IX of 14 November 2019}

3. Funds of the State Fund for Radioactive Waste Management shall be used to finance budget programmes, within which works on design, construction, commissioning, operation, decommissioning or closure of facilities intended for radioactive waste management, which are transferred state-owned licensees, including long-term storage/disposal facilities for radioactive waste generated after the reprocessing of spent nuclear fuel of Ukrainian nuclear power plants, and other measures related to the management of radioactive waste transferred by licensees to state ownershiArticle

4. The Procedure for using the funds of the State Fund for Radioactive Waste Management shall be established by the Cabinet of Ministers of Ukraine.

{The Code has been supplemented with Article 24-3 under Law No. 2125-VIII of 11 July 2017}

Article 24-4. State Fund for Water Management Development

1. The State Fund for Water Management Development is created as a part of the special fund of the State Budget of Ukraine.

2. Sources of formation of the State Fund for Water Management Development are the following:

1) state budget revenues specified in paragraph 13-1, part three, Article 29 of this Code;

2) other revenues specified by the law on the State Budget of Ukraine.

3. Funds of the State Fund for Water Management Development are directed on financial maintenance of actions on:

1) operation of the water management complex;

2) construction and reconstruction of melioration systems;

3) protection against the harmful effects of water for rural settlements and agricultural lands;

4) centralised water supply for rural settlements, which use imported water;

5) modernisation and development of the water management complex.

4. The procedure for using the funds of the State Fund for Water Management Development shall be determined by the Cabinet of Ministers of Ukraine.

{The Code has been supplemented with Article 24-4 under Law No. 2233-VIII of 07 December 2017}

Article 25. Undisputed write-off of budget funds and compensation for losses caused to the budget

1. {Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the rules of part one, Article 25 do not apply – see paragraph 2 Section II of Law No. 553-IX of 13 April 2020 – the provision was declared inconsistent with the Constitution of Ukraine (is unconstitutional), in accordance with the Decision of the Constitutional Court No. 10-р/2020 of 28 August 2020} The Treasury of Ukraine indisputably writes off funds from the state budget and local budgets based on the court decision.

2. Compensation for damage in accordance with the law caused to a natural or legal person as a result of illegally adopted decisions, actions or omissions of public authorities (authorities of the Autonomous Republic of Crimea, local governments), as well as their officials and officials in the exercise of their powers state (Autonomous Republic of Crimea, local governments) in the manner prescribed by law.

Article 26. Control and audit in the budget process

1. Control over compliance with budget legislation is aimed at ensuring effective and efficient management of budget funds and is carried out at all stages of the budget process by its participants in accordance with this Code and other legislation, and also provides:

1) assessment of budget funds management (including public financial audit);

2) the correctness of accounting and the reliability of financial and budgetary reporting;

3) achievement of budget savings, their targeted use, efficiency and effectiveness in the activities of budget managers by making informed management decisions;

4) analysis and assessment of the conditions of financial and economic activities of budget managers;

5) prevention of budget legislation violations and ensuring the interests of the state in the process of managing state property;

6) the validity of planning budget revenues and expenditures.

2. The Accounting Chamber shall, on behalf of the Verkhovna Rada of Ukraine, exercise control over the revenue to the State Budget of Ukraine and the use thereof. The activities of central executive bodies ensuring the implementation of state policy in the field of control over compliance with budget legislation (within their powers established by this Code and other regulations) are directed, coordinated and controlled by the Cabinet of Ministers of Ukraine.

{Part two of Article 26 as amended by Laws No. 2592-VI of 07 October 2010, No. 176-VIII of 10 February 2015}

3. Managers of budget funds in the person of their heads organise internal control and internal audit and ensure their implementation in their institutions and enterprises, institutions and organisations belonging to the management of such managers of budget funds.

{Paragraph 1, part 3 of Article 26 as amended by Law No. 2646-VIII of 06 December 2018}

Internal control is a set of measures applied by the head to ensure compliance with the law and efficiency of budget funds, achieving results in accordance with the established purpose, objectives, plans and requirements for the activities of the budget manager and enterprises, institutions and organisations belonging to his management.

{Paragraph 2, part 3 of Article 26 as amended by Law No. 2646-VIII of 06 December 2018}

Internal audit is an activity aimed at improving the management system, internal control, prevention of illegal, inefficient and ineffective use of budget funds, errors or other shortcomings in the activities of the budget manager and enterprises, institutions and organisations belonging to its management, and which provides independent conclusions and recommendations. To carry out internal audit, the manager of budget funds, namely, the head forms an independent structural unit of internal audit, which is subordinate and accountable directly to such head.

{Paragraph 3, Part 3 of Article 26 as revised by Law No. 2646-VIII of 06 December 2018}

The main principles of internal control and internal audit and the procedure for establishing internal audit units are determined by the Cabinet of Ministers of Ukraine. Organisational and methodological principles of internal control and internal audit are determined by the Ministry of Finance of Ukraine, which ensures the formation and implementation of public policy in the field of public internal financial control, including assessing the functioning of internal control and internal audit systems.

{Paragraph 4, part 3 of Article 26 as amended by Law No. 2646-VIII of 06 December 2018}

Article 27. Submission and consideration of draft laws affecting budget indicators and implementation of such laws

1. The subject of the right of legislative initiative is obliged to add the financial and economic substantiation (including the corresponding calculations) to which bill adoption will lead to change of indicators of the budget. If such changes in budget indicators imply a reduction in budget revenues and/or an increase in budget expenses, the draft law shall be supplemented with proposals for changes to legislative acts to reduce budget expenses and/or find additional sources of budget revenues to achieve a balanced budget.

{Part 1 of Article 27 as amended by Law No. 3614-VI dated 7 July 2011}

2. Each draft law submitted to the Verkhovna Rada of Ukraine shall be sent to the Cabinet of Ministers of Ukraine within five days for examination of its impact on budget indicators and compliance with the laws governing budgetary relations.

The Cabinet of Ministers of Ukraine shall submit an expert opinion prepared by the Ministry of Finance of Ukraine with the participation of other interested central executive bodies to the Committee of the Verkhovna Rada of Ukraine on Budget within two weeks from the date of receipt of the draft law. The expert opinion to the draft law shall contain information on the completeness and reliability of the data set out in the financial and economic justification, the impact of the draft law on budget indicators (with mandatory determination of the value of such impact), financial security in the relevant budget period, compliance with laws budget relations, and proposals for its consideration.

3. Laws of Ukraine or their separate provisions affecting budget indicators (reduce budget revenues and/or increase budget expenditures) and are adopted:

no later than July 15 of the year preceding the planned year, shall be put into effect not earlier than the beginning of the planned budget period;

after July 15 of the year preceding the planned year, shall be put into effect not earlier than the beginning of the budget period following the planned one.

{Part 3 of Article 27 as amended by Law No. 5213-VI of 06 September 2012; as revised by Law No. 176-VIII of 10 February 2015}

4. Consideration of the draft law on the State Budget of Ukraine and draft laws on amendments to the law on the State Budget of Ukraine shall be carried out according to a special procedure determined by the Rules of Procedure of the Verkhovna Rada of Ukraine.

Article 28. Availability of budget information

1. Budget information shall be made public in accordance with the requirements set out in this Code.

The Ministry of Finance of Ukraine ensures the publication of:

1) Budget declaration together with relevant information and analytical materials;

{Paragraph 3, Part 1 of Article 28 as revised by Law No. 2646-VIII of 06 December 2018}

1-1) draft law on the State Budget of Ukraine;

{Paragraph, Part 1 of Article 28 as revised by Law No. 2646-VIII of 06 December 2018}

2) the law on the State Budget of Ukraine with annexes, which are its integral part, as well as information and analytical materials on the main indicators and objectives of the state budget (in a publicly accessible form) within one month from the date of publication of the law on the State Budget of Ukraine placement on its official website;

{Paragraph 2, part 1 of Article 28 as amended by Law No. 176-VIII of 10 February 2015}

3) information on the execution of the State Budget of Ukraine based on the results of the month, quarter and year;

4) information on the implementation of the consolidated budget of Ukraine;

5) other information on the execution of the State Budget of Ukraine.

Reporting on the execution of the State Budget of Ukraine shall be submitted in accordance with the procedure specified in Articles 59-61 of this Code. At the same time, monthly, quarterly and annual reports on the execution of the State Budget of Ukraine are posted on the official website of the Treasury of Ukraine.

{Paragraph of part one, Article 28 as amended under Law No. 176-VIII of 10 February 2015}

2. The draft law on the State Budget of Ukraine shall be subject to obligatory publication in the newspaper "Governmental Courier" not later than seven days after its submission to the Verkhovna Rada of Ukraine.

Budget requests, including information on the purpose, objectives and performance indicators to be achieved in the implementation of budget programmes, as well as information on public policy objectives in the relevant field, which formation and/or implementation provides the key spending unit, and indicators of their achievement according to the results of the previous budget period, expected in the current budget period and forecast for the medium term, are posted by each key spending unit on its official website no later than three working days after the submission of the draft law on the State Budget of Ukraine.

{Part two of Article 28 is supplemented by paragraph 2 as amended by Law No. 176-VIII of 10 February 2015; as amended by Laws No. 313-VIII of 09 April 2015, No. 2646-VIII of 06 December 2018}

The main managers of local budgets post budget requests on their official websites or publish them in another way no later than three working days after the submission of the draft decision on the local budget to the Verkhovna Rada of the Autonomous Republic of Crimea.

{Part two of Article 28 has been supplemented with paragraph three under Law No. 2646-VIII of 06 December 2018}

3. Information on the execution of the state (local) budget shall contain indicators of the relevant budget for general and special funds on revenues (detailed by types of revenues that provide at least 3 per cent of total revenues of the relevant budget) and on expenditures and lending (detailed by groups functional classification of expenditures and budget lending), financing, as well as indicators on the state of public (local) debt and the provision of state (local) guarantees. Such indicators are given in comparison with similar indicators for the corresponding period of the previous budget period with indication of dynamics for their change.

{Part 3 of Article 28 as amended by Laws No. 3614-VI dated 7 July 2011, No. 79-VIII of 28 December 2014}

4. The Verkhovna Rada of the Autonomous Republic of Crimea, the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, local self-government bodies shall ensure the publication of information on local budgets, including decisions on local budgets and quarterly reports on their implementation. The decision on the local budget shall be published no later than ten days from the date of its adoption in the newspapers designated by the Verkhovna Rada of the Autonomous Republic of Crimea by the relevant local councils.

The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils shall ensure publication on their official websites or in another way in accordance with the Law of Ukraine "On Access to Public Information":

{Part 4 of Article 28 has been supplemented with paragraph 2 under Law No. 1081-IX of 15 December 2020}

1) forecast of the local budget – within five days from the date of its approval;

{Part 4 of Article 28 has been supplemented with Paragraph 3 under Law No. 1081-IX of 15 December 2020}

2) a draft decision on the local budget – not later than three working days after its submission to the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council;

{Part 4 of Article 28 has been supplemented with paragraph 4 under Law No. 1081-IX of 15 December 2020}

3) decision on the local budget – within ten days from the date of its adoption;

{Part 4 of Article 28 has been supplemented with paragraph 5 under Law No. 1079-IX of 15 December 2020}

4) information on the implementation of the local budget – based on the results of the month, quarter, year.

{Part 4 of Article 28 has been supplemented with paragraph 6 under Law No. 1081-IX of 15 December 2020}

{Part 4 of Article 28 as amended by Law No. 1081-IX of 15 December 2020}

5. Information on the execution of the State Budget of Ukraine and local budgets shall be subject to mandatory publication no later than March 1 of the year following the year of the report: of the State Budget of Ukraine – in the newspaper "Governmental Courier"; local budgets – in newspapers determined by the Verkhovna Rada of the Autonomous Republic of Crimea, by the relevant local councils.

{Paragraph 1, Part 5, Article 28 as amended by Law No. 1081-IX of 15 December 2020}

Until March 20 of the year following the reporting year, the Ministry of Finance of Ukraine shall make public a report on the execution of the State Budget of Ukraine for the previous budget period, in which authorised representatives of the Verkhovna Rada Committee on Budget and the Accounting Chamber shall participate. Information on the time and place of the public presentation is published together with the report on the execution of the State Budget of Ukraine.

The main spending units provide public information on the implementation of budget programmes, including the achievement of public policy objectives in the relevant field, which formation and/or implementation of provides the key spending unit, within budget programmes for the reporting budget period until March 15, following the reporting, and publish announcements about the time and place of public presentation of such information.

{Paragraphs three and four, part five of Article 28 are replaced by a paragraph under Law No. 79-VIII of 28 December 2014; as amended by Law No. 288-VIII of 07 April 2015; as revised by Law No. 313-VIII of 09 April 2015; as amended by Law No. 2621-VIII of 22 November 2018; as revised by Law No. 2646-VIII of 06 December 2018}

The main managers of budget funds are published by posting on their official websites (the main managers of local budgets may publish in another way in accordance with the Law of Ukraine "On Access to Public Information"):

{Paragraph of part five, Article 28 as amended Laws No. 313-VIII of 09 April 2015, No. 2646-VIII of 06 December 2018}

information on the objectives of state policy in the relevant field of activity, which formation and/or implementation is provided by the chief administrator of budget funds, and indicators of their achievement within budget programmes for the reporting budget period – until March 15 of the year following the reporting year;

{Paragraph five of Article 28 as amended Law No. 313-VIII of 09 April 2015;as amended by Law No. 1789-VIII of 20 December 2016; as revised by Law No. 2646-VIII of 06 December 2018}

budget programme passports for the current budget period (including changes to budget programme passports) – within three working days from the date of approval of such documents;

{Paragraph, Part 5 of Article 28 as revised by Law No. 2646-VIII of 06 December 2018}

reports on the implementation of budget programmes passports for the reporting budget period – within three working days after the submission of annual budget reports;

{Paragraph, Part 5 of Article 28 as revised by Law No. 2646-VIII of 06 December 2018}

reports on the implementation of state investment projects in the form established by the central executive body, which ensures the formation of state policy in the field of economic and social development – once every six months (year), until the 20th day of the month following the reporting period;

{Paragraph, Part 5 of Article 28 as revised by Law No. 2646-VIII of 06 December 2018}

the results of the evaluation for the effectiveness of budget programmes for the reporting budget period – within two weeks after the submission of the annual budget reporting.

{Paragraph, Part 5 of Article 28 as revised by Law No. 2646-VIII of 06 December 2018}

Public presentation of information on the implementation of local budgets in accordance with the indicators for which budget allocations are approved by the decision on the local budget, is carried out until March 20 of the year following the reporting year. Information on the time and place of public presentation of such information shall be published together with information on the implementation of the relevant budgets.

{Paragraph 9, Part 5, Article 28 as amended by Law No. 1081-IX of 15 December 2020}

{Paragraph 11, part 5 of Article 28 has been deleted under Law No. 1079-IX of 15 December 2020}

6. Information on the budget, defined by this article, shall be published in compliance with the requirements of the Law of Ukraine "On Access to Public Information" in terms of disclosure of public information in the form of open data.

The conditions and procedure for ensuring access to information on the use of state and local budgets are determined by the Law of Ukraine "On Open Use of Public Funds".

{Article 28 has been supplemented with Part 6 under Law No. No. 313-VIII of 09 April 2015}

SECTION II.
STATE BUDGET OF UKRAINE

Chapter 5. REVENUES, EXPENDITURES AND LENDING OF THE STATE BUDGET OF UKRAINE

Article 29. Composition of revenues of the State Budget of Ukraine

1. Revenues of the State Budget of Ukraine shall include budget revenues, except for those in accordance with Articles 64, 64-1, 66, 69-1 та 71 of this Code are assigned to local budgets.

{Part 3 of Article 29 as amended by Laws No. 79-VIII of 28 December 2014, No. 1081-IX of 15 December 2020}

2. The revenues of the general fund of the State Budget of Ukraine (taking into account the features specified in paragraph 1, part 2, Article 67-1 of this Code) include:

{Paragraph 1 of part 2 of Article 29 as amended by Law No. 1210-VII of 15 April 2014}

1) personal income tax (except for the tax specified in paragraph 1-1 of this part of the article), which is paid (transferred) in accordance with the Tax Code of Ukraine in the amount of 25 per cent in the relevant territory of Ukraine (except in Kyiv and Sevastopol) and in the amount of 60 per cent – on the territory of the city of Kyiv;

{Paragraph 1, part 2 of Article 29 as amended by Laws No. 1588-VII of 04 July 2014, No. 79-VIII of 28 December 2014}

1-1) personal income tax on passive income taxation in the form of interest on current or deposit (deposit) bank account, interest on deposit (deposit) of a credit union member in a credit union, paid (transferred) in accordance with the Tax Code of Ukraine;

{Part 2 of Article 29 has been supplemented with Clause 1-1 under Law No. 1588-VII of 04 July 2014; as amended by Law No. 176-VIII of 10 February 2015}

1-2) military duty paid (transferred) in accordance with paragraph 16-1, subsection 10, section XX of the Tax Code of Ukraine;

{Part 2 of Article 29 has been appended with Clause 1-2 under Law No. 1621-VII of 31 July 2014}

2) 90 per cent of the corporate income tax (except for the corporate income tax of the state property, which is credited to the general fund of the state budget in full, and the tax specified in paragraph 18, part 1 of Article 64, paragraph 1, part 1 of Article 64-1 and paragraph 1-2 part one of Article 66 of this Code);

{Paragraph 1, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

3) 37 per cent of the rent for the special use of forest resources in the part of wood harvested in the order of felling of the main use;

{Paragraph 3, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

4) 45 per cent of the rent for the special use of water (except for the rent for the special use of water of water bodies of local significance);

{Paragraph 4, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 2233-VIII of 07 December 2017}

5) 70 per cent of the rent for the use of subsoil for the extraction of minerals of national importance (except for the rent specified in paragraph 5-1 of this part of the Article);

{Paragraph 5, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014; as amended by Laws No. 1793-VIII of 20 December 2016, No. 2621-VIII of 22 November 2018}

5-1) 95 per cent of the rent for the use of subsoil for the extraction of oil, natural gas and gas condensate (except for the rent for the use of subsoil within the continental shelf and/or exclusive (marine) economic zone of Ukraine, which is included in the general fund of the state budget in full);

{Part 2 of Article 29 has been supplemented with clause 5-1 under Law No. 1793-VIII of 20 December 2016}

6) value added tax;

7) excise tax on excisable goods (products) produced in Ukraine (except for the excise tax specified in paragraph 1, part three of this Article and paragraph 6, part one of Article 66 of this Code);

{Paragraph 7, part 2 of Article 29, as amended by Law No. 242-VII of 16 May 2013; as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 1763-VIII of 17 November 2016}

8) excise tax on excisable goods (products) imported into the customs territory of Ukraine (except for the excise tax specified in paragraph 2, part three of this Article);

{Paragraph 8, part 2 of Article 29 as amended by Laws No. 79-VIII of 28 December 2014, No. 1763-VIII of 17 November 2016}

9) import duty (except for the import duty specified in paragraph 3, part three of this Article);

{Paragraph 9, part 2 of Article 29 as amended by Laws No. 79-VIII of 28 December 2014, No. 1763-VIII of 17 November 2016}

10) export duty;

{Paragraph 11, part 2 of Article 29 has been deleted under Law No. 914-VIII of 24 December 2015}

12) rent for transportation of oil and oil products by main oil pipelines and oil product pipelines through the territory of Ukraine;

13) rent for transit transportation of ammonia by pipelines through the territory of Ukraine;

{Paragraph 14, part 2 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

{Paragraph 15, part 2 of Article 29 has been deleted under Law No. 914-VIII of 24 December 2015}

16) rent for the use of radio frequency resources of Ukraine;

{Paragraph 16, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014}

16-1) 45 per cent of the environmental tax (except for the environmental tax levied on emissions of carbon dioxide from stationary pollution sources, which is credited to the general fund of the state budget in full; environmental tax levied on the generation of radioactive waste (including already accumulated) and/or temporary storage of radioactive waste by their producers beyond the period established by the special conditions of the license, which is credited to the special fund of the state budget in full);

{Part 2 of Article 29 has been supplemented with paragraph 16-1 under Law No. 79-VIII of 28 December 2014;as amended by Laws No. 2125-VIII of 11 July 2017, No. 2233-VIII of 07 December 2017; as revised by Law No. 2621-VIII of 22 November 2018}

{Paragraph 16-2, part 2 of Article 29 has been deleted under Law No. 1763-VIII of 17 November 2016}

16-3) collection for socio-economic risk compensation of the population living in the territory of the observation zone;

{Part 2 of Article 29 has been supplemented with paragraph 16-3 under Law No. 79-VIII of 28 December 2014}

17) part of the net profit (income) of state unitary enterprises and their associations, which is withdrawn to the state budget in accordance with the law, and dividends (income) accrued on shares (stakes) of companies in the authorised capital of which is state property;

{Paragraph 17, part 2 of Article 29 as amended by Law No. 2233-VIII of 07 December 2017}

18) funds transferred by the National Bank of Ukraine in accordance with the Law of Ukraine "On the National Bank of Ukraine";

19) payment for placement of temporarily free funds of the state budget (except for funds received by institutions of professional (professional and technical), professional higher and higher education from placement on deposits of temporarily free budget funds received for paid services, if such institutions are granted the right by law);

{Paragraph 19, part 2 of Article 29 as amended by Law No. 293-IX of 14 November 2019}

20) funds received by foreign diplomatic missions of Ukraine as payment for the placement of budget funds due to them on current accounts of foreign banks;

21) payments related to the stay of the Black Sea Fleet of the Russian Federation on the territory of Ukraine, in accordance with the Agreement concluded on May 28, 1997 between the Government of Ukraine and the Government of the Russian Federation on mutual settlements related to the division of the Black Sea Fleet and the Black Sea Fleet on the territory of Ukraine;

22) payments related to the implementation of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation on the participation of the Russian Federation in the development of socio-economic sphere of Sevastopol and other settlements in which military formations of the Black Sea Fleet of the Russian Federation are located on the territory of Ukraine;

23) funds from sanctions (fines, penalties, etc.) applied in accordance with the law (except for the fines specified in paragraphs 6-3, 6-4 і 13-5 part three of this Article, paragraphs 37-39 part one of Article 64, paragraph 13 part one of Article 64-1 and paragraphs 26 and 27 part one of Article 66 of this Code);

{Clause 23, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 71-VIII of 28 December 2014; as revised by Law No. 176-VIII of 10 February 2015; as amended by Laws No. 2621-VIII of 22 November 2018, No. 74-IX of 12 September 2019, No. 1081-IX of 15 December 2020}

24) payment for the provision of administrative services (except for the fee specified in paragraph 36 part 1 of Article 64 of this Code);

{Paragraph 24, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

24-1) administrative fee for state registration of real rights to immovable property and their encumbrances (except for the administrative fee specified in paragraph 36-1 part one of Article 64 and paragraph 9 part one of Article 64-1 of this Code);

{Part 1 of Article 29 has been supplemented with Clause 24-1 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 836-VIII of 26 November 2015, No. 1081-IX of 15 December 2020}

24-2) 85 per cent of the fee for providing information from the Unified State Register of Legal Entities, Individuals – Entrepreneurs and Public Associations, as well as 85 per cent of the fee for receiving information from other state registers held by the central executive body for forming and implementing state legal policy and central body of executive power, which ensures the implementation of state policy in the areas of state registration of civil status acts, state registration of real rights to immovable property, state registration of legal entities, natural persons – entrepreneurs and public formations;

{Part 2 of Article 29 has been supplemented with paragraph 24-2 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 836-VIII of 26 November 2015}

{Paragraph 24-3 has been deleted under Law No. 836-VIII of 26 November 2015}

24-4) fee for reduction of terms of services provision in the field of state registration of real property rights and their encumbrances and state registration of legal entities, natural persons – entrepreneurs and public formations, as well as fee for provision of other paid services related to such state registration (except fee determined by paragraph 36-3 part one of Article 64 and paragraph 11, part one of Article 64-1 of this Code);

{Part 2 of Article 29 has been supplemented with paragraph 24-4 under Law No. 79-VIII of 28 December 2014; as revised by LawNo. 836-VIII of 26 November 2015; as amended by Law No. 1081-IX of 15 December 2020}

25) fee for licenses for certain types of economic activity (except for the fee specified in paragraphs 21-24, 27, 28, 28-1 and 43-1, part one of Article 64, paragraph 2, part one of Article 64-1, paragraphs 18-21, 24, 25 and 25-1, part one of Article 66 of this Code);

{Clause 25, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 2233-VIII of 07 December 2017; as amended by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

25-1) administrative fee for state registration of legal entities, natural persons – entrepreneurs and public formations (except for the administrative fee specified in clause 36-2, part one, Article 64 of this Code and clause 10, part one, Article 64-1);

{Part 2 of Article 29 has been supplemented with paragraph 25-1 under Law No. 163-VII of 04 April 2013; as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 836-VIII of 26 November 2015, No. 1509-VIII of 08 September 2016, No. 1081-IX of 15 December 2020}

25-2) payment for certification of the electricity transmission system operator, gas transmission system operator;

{Part 2 of Article 29 has been supplemented with paragraph 25-2 under Law No. 293-IX of 14 November 2019}

26) fees for preparation of copyright and agreements relating to the author's rights to the work for the state registration, and payment for the receipt of control marks;

27) payment for the issuance of permits for the right to import into the territory of Ukraine, export from the territory of Ukraine or transit through the territory of Ukraine of narcotic drugs, psychotropic substances and precursors;

28) fee for the issuance of special permits for subsoil use and funds from the sale of such permits;

29) fee for the allocation of numbering resources;

30) fee for state registration of ionising radiation sources (registration fee);

31) fee for registration of a foreign Ukrainian certificate;

32) funds received for consular actions on the territory of Ukraine, as well as funds received for consular actions outside Ukraine;

32) funds received for consular actions on the territory of Ukraine, as well as funds received for consular actions outside Ukraine;

{Clause 33, part 2 of Article 29 as revised by Law No. 79-VIII of 28 December 2014}

34) income from rent for the use of the entire property complex and other state property (except for the rent specified in paragraph 10 of part three of this article and the third paragraph, part five, Article 19 of the Law of Ukraine "On Lease of State and Communal Property");

{Clause 35, part 2 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

36) a single fee, which is collected at checkpoints across the state border of Ukraine;

{Clause 36, part 2 of Article 29 as amended by Law No. 293-IX of 14 November 2019}

37) port (administrative) fee;

38) payment for the performance of customs formalities by the customs authorities outside the location of these bodies or outside the working hours established for them;

{Clause 38, part 2 of Article 29 as revised by Law No. 242-VII of 16 May 2013; as amended by Law No. 642-IX of 02 June 2020}

39) funds from the sale of property confiscated by a court decision, treasures which are monuments of history and culture, property received by the state according to inheritance procedure or as a gift;

40) funds from the sale of surplus space equipment for military and dual purposes;

41) funds from the sale of surplus weapons, military and special equipment, real estate of the Armed Forces of Ukraine and other military formations, law enforcement agencies and other state bodies formed in accordance with the laws of Ukraine (except for the funds specified in paragraph 12-1, part 3 aof this Article);

{Clause 41, Part 2, Article 29 as amended by Law No. 1081-IX of 15 December 2020}

42) deductions from the amount of funds spent on advertising of tobacco products and/or alcoholic beverages within Ukraine;

43) 20 per cent of revenues to the State Specialised Fund for Financing National Expenditures on Aviation Activities and Ukraine's Participation in International Aviation Organisations;

{Clause 43, part 2 of Article 29 as amended by Law No. 176-VIII of 10 February 2015}

44) fee for filing a complaint regarding procurement procedures to the appellate body;

{Clause 44, part 2 of Article 29 as revised by Law No. 1789-VIII of 20 December 2016}

45) funds received from the participants of the procurement procedure/simplified procurement as security for their tender offer/proposal of the participant of the simplified procurement, which are not subject to return to such participants, in terms of procurement at the expense of the state budget;

{Clause 45, Part 2 of Article 29 as amended by the Law No. 1789-VIII of 20 December 2016; as revised by the Law No. 1081-IX of 15 December 2020}

46) funds received from the winner of the procurement/simplified procurement procedure during the conclusion of the procurement contract as security for the performance of such contract, which are not refundable to the bidder, in terms of procurement at the expense of the state budget;

{Clause 45, Part 2, Article 29 as revised by the Law No. 1081-IX of 15 December 2020}

47) funds from the sale of solid rocket fuel utilisation products;

48) fees for the provision of state guarantees and credits (loans) involved by the state, and fees for the use of credits (loans) involved by the state;

49) payment for the use of credit from the state budget;

50) interest for the use of preferential long-term state credit provided to young families and single young citizens for the construction (reconstruction) and purchase of housing;

51) fees for compulsory state pension insurance, which are paid in accordance with the law when submitting jewelry and household products made of precious metals for branding with a state test mark to state-owned enterprises of test control and during the acquisition of ownership of cars, purchase (purchase) –sale) of real estate, the use and provision of cellular mobile services;

{Paragraph 51, part 2 of Article 29 as amended by Laws No. 71-VIII of 28 December 2014, No. 2233-VIII of 07 December 2017}

52) concession payments for state-owned objects (except for concession payments specified in paragraph 6-5 of part three of this article);

{Clause 52, Part 2, Article 29 as amended by Law No. 1081-IX of 15 December 2020}

53) funds from the sale of precious metals and precious stones, received by a state institution authorised to carry out operations with precious metals and precious stones;

54) 80 per cent of the funds received by enterprises, institutions and organisations maintained at the expense of the state budget for gold, platinum, platinum group metals, precious stones, and 50 per cent of the funds received by these enterprises, institutions and organisations for silver handed over in the form of scrap and waste;

55) 90 per cent of the funds from the use (sale) of the part of the manufactured products remaining in the state ownership in accordance with production sharing agreements, and/or funds in the form of cash equivalent of such state part of the products (except funds from the state part of products within the continental shelf and the exclusive (marine) economic zone of Ukraine, which are included in the general fund of the state budget in full);

{Paragraph 55, part 2 of Article 29 as revised by Law No. 665-VII of 05 November 2013}

56) 10 per cent of funds from the sale of non-agricultural land plots which are in state ownership before the demarcation of state and municipal lands or rights to them; funds from the sale of non-agricultural land plots which are in state ownership after the delimitation of state and communal lands or rights to them;

{Clause 56, Part 2, Article 29 as amended by Law No. 1081-IX of 15 December 2020}

57) funds received from the Secretariat of the United Nations, NATO, the EU, the OSCE or another international organisation for Ukraine's participation in international peacekeeping and security operations;

58) funds transferred to the state budget from local budgets;

59) other revenues, which are credited to the general fund of the state budget in the prescribed manner.

3. Sources of formation for the special fund of the State budget of Ukraine in the part of revenues (taking into account the features defined by clause 1, part two of Article 67-1 of this Code) are the following:

{Paragraph one, part 3 of Article 29 as amended by Law No. 1210-VII of 15 April 2014}

{Paragraph 1, part 3 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

1) excise tax on fuel and vehicles produced in Ukraine (except for the excise tax specified in clause 16-1, part one of Article 64 and clause 6, part one, Article 66 of this Code);

{Clause 1 has been added to part 3 of Article 29 under Law No. 1763-VIII of 17 November 2016; as revised by Law No. 1081-IX of 15 December 2020}

{Paragraph 2, part 3 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

2) excise tax on fuel and vehicles imported into the customs territory of Ukraine (except for the excise tax specified in paragraph 16-2, part 1, Article 64 of this Code);

{Clause 2 has been added to part 3 of Article 29 under Law No. 1763-VIII of 17 November 2016; as revised by Law No. 1081-IX of 15 December 2020}

{Paragraph 3, part 3 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

3) import duty for petroleum products and vehicles and tires for them;

{Clause 3 has been added to part 3 of Article 29 under Law No. 1763-VIII of 17 November 2016}

{Paragraph 4, part 3 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

5) court fees and proceeds from the application of the pledge to the state revenue;

{Paragraph 5, part 3 of Article 29 as amended by Law No. 914-VIII of 24 December 2015}

{Paragraph 6, part 3 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

6) tolls for vehicles and other self-propelled machines and mechanisms, which weight or dimensions exceed the normative;

{Clause 6 has been added to part 3 of Article 29 under Law No. 1763-VIII of 17 November 2016}

6-1) 80 per cent of revenues to the State Specialised Fund for Financing National Expenditures on Aviation Activities and Ukraine's Participation in International Aviation Organisations;

{Part 3 of Article 29 has been supplemented with paragraph 6-1 under Law No. 176-VIII of 10 February 2015}

6-2) toll for public roads of state importance;

{Part 3 of Article 29 has been supplemented with paragraph 6-2 under Law No. 1763-VIII of 17 November 2016}

6-3) 50 per cent of revenues from administrative and economic fines for violation of the legislation on road transport, provided for in paragraphs fourteen – sixteen, part 1, Article 60 of the Law of Ukraine "On Motor Vehicle Transport" (except for fines specified in clause 13-5 of this part of the Article);

{Part 3 of Article 29 has been supplemented with paragraph 6-3 under Law No. 74-IX of 12 September 2019}

6-4) 50 per cent of revenues from administrative fines for offences under part 2, Articles 122-2 and part 2, Article 132-1 of the Code of Administrative Offences of Ukraine (except for the fines specified in clause 13-5 of this part of the Article);

{Part 3 of Article 29 has been supplemented with paragraph 6-4 under Law No. 74-IX of 12 September 2019}

6-5) concession payments paid in the case of construction and operation of public roads on the terms of the concession;

{Part three, Article 29 has been supplemented with clause 6-5 under Law No. 1079-IX of 15 December 2020}

7) 30 per cent of monetary penalties for damage caused by violation of legislation on environmental protection as a result of economic and other activities;

7-1) 15 per cent of the fee for providing information from the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Associations, as well as 15 per cent of the fee for obtaining information from other state registers held by the central executive body for forming and implementing state legal policy and central body of executive power, which ensures the implementation of state policy in the areas of state registration of civil status acts, state registration of real rights to immovable property, state registration of legal entities, natural persons – entrepreneurs and public formations;

{Part 3 of Article 29 has been supplemented with paragraph 7-1 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 836-VIII of 26 November 2015}

{Paragraph 7-2, part 3 of Article 29 has been deleted under Law No. 836-VIII of 26 November 2015}

{Paragraph 7-3, part 3 of Article 29 has been deleted under Law No. 836-VIII of 26 November 2015}

7-4) {Paragraph 7-4, part 3 of Article 29 is applied in the manner prescribed by Articles 10 and 11 of Law No. 2246-VIII of 07 December 2017 – see Paragraph 8 Final provisions of the Law No. 2246-VIII of 07 December 2017} environmental tax levied for the formation of radioactive waste (including already accumulated) and/or for the temporary storage of radioactive waste by their producers beyond the period established by the special conditions of the license;

{Part 3 of Article 29 has been supplemented with paragraph 7-4 under Law No. 2125-VIII of 11 July 2017}

8) funds received in accordance with Article 8 of the Law of Ukraine "On streamlining issues related to nuclear safety" (including receipts of arrears of previous years on these funds), and income from the placement of these funds in securities in accordance with Article 9 of the same Law of Ukraine;

{Paragraph 9, part 3 of Article 29 has been deleted under Law No. 79-VIII of 28 December 2014}

10) own revenues of budgetary institutions (including scientific institutions of the National Academy of Sciences of Ukraine and branch academies of sciences) maintained at the expense of the state budget, including rent for the use of military property, property of the National Academy of Sciences of Ukraine and branch academies of sciences, 50 interest on rent for the use of other property belonging to budgetary institutions maintained at the expense of the state budget;

11) proceeds from the sale of material values form the state reserve;

12) proceeds from the sale of armored tangible assets of the mobilisation reserve;

12-1) funds from the sale of surplus weapons, military and special equipment, military real estate by the intelligence agencies of Ukraine;

{Part three, Article 29 has been supplemented with a clause 12-1 under Law No. 1079-IX of 15 December 2020}

13) receipts within the framework of assistance programmes and grants of the European Union, governments of foreign states, international organisations, donor institutions;

{Clause 13, part 3 of Article 29 as revised by Law No. 914-VIII of 24 December 2015; as amended by Law No. 2621-VIII of 22 November 2018}

13-1) 50 per cent of the executive fee levied by the state executive service;

{Part 3 of Article 29 has been supplemented with paragraph 13-1 under Law No. 79-VIII of 28 December 2014}

13-2) income to the Fund for Social Protection of Persons with Disabilities;

{Part 3 of Article 29 has been supplemented with Clause 13-2 under Law No. 176-VIII of 10 February 2015; as amended by Law No. 1081-IX of 15 December 2020}

13-3) 10 per cent of the rent for the special use of water (except for the rent for the special use of water of water bodies of local significance);

{Part 3 of Article 29 has been supplemented with paragraph 13-3 under Law No. 2233-VIII of 07 December 2017}

13-4) 26 per cent of the rent for the special use of forest resources in the part of wood harvested in the order of felling of the main use;

{Part 3 of Article 29 has been supplemented with paragraph 13-4 under Law No. 2621-VIII of 22 November 2018}

13-5) 50 per cent of revenues from administrative fines for administrative offences in the field of road safety, recorded automatically;

{Part 3 of Article 29 has been supplemented with paragraph 13-5 under Law No. 2621-VIII of 22 November 2018}

13-6) income from the sale of property rights to use films, source materials of films and film copies created at the expense of the State Budget of Ukraine; from the sale by cinematographers who have received subsidies from the state for the creation (production) of films, television films, television series, property rights to use such films, television films, television series, film source materials, television films, television series and film copies, as well as from the realisation of property rights to use films and film materials, which in accordance with the production plans of the State Cinema of the USSR, the Ministry of Culture of the USSR and their successors in 1953-1991 created (produced) at the expense of state (budget) funds in state studios and owned by the state;

{Part 3 of Article 29 has been supplemented with paragraph 13-6 under Law No. 76-IX of 12 September 2019}

13-7) payment paid by the subject of cinematography for consideration of applications for state subsidies for the production (creation) of a film (game, animation, etc.), television film, television series, to reimburse part of the eligible costs incurred by the subject of cinematography during production (creation) the film;

{Part 3 of Article 29 has been supplemented with paragraph 13-7 under Law No. 76-IX of 12 September 2019}

13-8) 50 per cent of the proceeds from the rental and/or transfer of rights to use the film (but not more than 50 per cent of the amount of state support received), paid to the state budget during the entire term of copyright for the film by a cinematographer who received a state subsidy creation of a film in the forms provided for in clauses 2 and 3, part 1, Article 7 of the Law of Ukraine "On State Support of Cinematography in Ukraine", and in which favor intellectual property rights are transferred (alienated) or to a person transferred (alienated) by a cinematographer, who created the film with such state support, intellectual property rights to such film in full or in part and who acquired property rights to such film;

{Part 3 of Article 29 has been supplemented with paragraph 13-8 under Law No. 76-IX of 12 September 2019}

14) other revenues specified by the law on the State Budget of Ukraine.

4. If the law establishes a new type of state budget revenue, its inclusion in the general or special fund shall be determined by the law on the State Budget of Ukraine for the period prior to the relevant amendments to this Code.

5. The Law on the State Budget of Ukraine may refer to the relevant budget period certain types of revenues of the general (special) fund of the State Budget of Ukraine or part thereof, which are defined by part two (three) of this Article, to the special (general) fund of the State Budget of Ukraine.

{Article 29 as amended by Laws No. 2756-VI of 02 December 2010, No. 2856-VI of 23 December 2010, No. 3828-VI of 06 October 2011, No. 4318-VI of 12 January 2012, No. 5063-VI of 05 July 2012, No. 5083-VI of 05 July 2012, No. 5204-VI of 06 September 2012, No. 5492-VI of 20 November 2012; as revised by Law No. 5428-VI of 16 October 2012}

Article 30. Composition of expenditures and lending of the State Budget of Ukraine

1. Expenditures and crediting of the State Budget of Ukraine shall include budget allocations established by the law on the State Budget of Ukraine for specific purposes related to the implementation of programmes and measures in accordance with Article 87 of this Code.

2. The sources of formation for the general fund of the State Budget of Ukraine in terms of lending are the following:

1) receipts as a result of recovery of overdue debt to the state on credits (loans) attracted by the state or under state guarantees, credits from the state budget, unless otherwise provided by the law on the State Budget of Ukraine;

2) repayment of loans granted from the state budget, which have no purpose, in accordance with the law;

{Paragraph 2, part 2 of Article 30 as amended by Law No. 4318-VI of 12 January 2012}

3) repayment of loans to the state budget provided for the implementation of investment projects at the expense of loans (borrowings) attracted by the state from foreign states, foreign financial institutions and international financial organisations, unless otherwise provided by the law on the State Budget of Ukraine.

{Paragraph 3, part 2 of Article 30 as amended by Laws No. 5428-VI of 16 October 2012, No. 2646-VIII of 06 December 2018}

3. The sources of formation of the special fund of the State Budget of Ukraine in terms of lending are the following:

1) repayment of loans granted from the state budget to individual rural developers for construction (reconstruction) and purchase of housing;

2) repayment of loans provided from the state budget to young families and single young citizens for construction (reconstruction) and purchase of housing, and fines;

3) repayment of loans granted from the state budget to farms;

4) return of funds provided for the formation of the Agrarian Fund of the state intervention fund, as well as for the purchase of material and technical resources for the needs of agricultural producers;

5) repayment of loans granted from the state budget, which have a purpose in accordance with the law on the State Budget of Ukraine.

{Part 3 of Article 30 as revised by Law No. 5428-VI of 16 October 2012}

4. Funds received in the special fund of the State Budget of Ukraine in accordance with the relevant paragraphs of part three, Article 15, part three, Article 29 and part three, this Article of this Code shall be directed to:

1) implementation of investment projects, including by lending or providing transfers (at the expense of the sources specified in clause 1, part three, Article 15 of this Code);

{Paragraph 2, part 4 of Article 30 has been deleted under Law No. 79-VIII of 28 December 2014}

2-1) actions defined by part three, Article 24-2 of this Code (from sources defined by clauses 1-3, 6, 6-2, 6-3, 6-4 and 6-5, part three, Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 2-1 under Law No. 1763-VIII of 17 November 2016; as amended by Laws No. 74-IX of 12 September 2019, No. 1081-IX of 15 December 2020}

2-2) actions defined by part three, Article 24-3 of this Code (from sources defined by clause 7-4, part three, Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 2-2 under Law No. 2125-VIII of 11 July 2017}

2-3) actions defined by part three, Article 24-4 (from sourcees defined by clause 13-3, part three, Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 2-3 under Law No. 2233-VIII of 07 December 2017}

{Paragraph 3, part 4 of Article 30 has been deleted under Law No. 79-VIII of 28 December 2014}

{Paragraph 4, part 4 of Article 30 has been deleted under Law No. 79-VIII of 28 December 2014}

5) ensuring the administration of justice and the functioning of judicial authorities (at the expense of the sources specified in clause 5, part three, Article 29 of this Code);

{Paragraph 5, part 4 of Article 30 as revised by LawNo. 914-VIII of 24 December 2015}

6) implementation of environmental protection measures, including protection against the harmful effects of water from rural settlements and agricultural lands (at the expense of the sources specified in clause 7, part three, Article 29 of this Code);

6-1) ensuring the functioning of state registers, which are held by the central executive body for the formation and implementation of state legal policy and the central executive body ensuring the implementation of state policy in the areas of state registration of civil status, state registration of real property rights, state registration of legal persons, natural persons – entrepreneurs and public formations (at the expense of the sources specified in clause 7-1, part three, Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 6-1 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 836-VIII of 26 November 2015}

{Paragraph 6-2, part 4 of Article 30 has been deleted under Law No. 836-VIII of 26 November 2015}

7) acquisition of securities in accordance with Article 9 of the Law of Ukraine "On the regulation of issues related to nuclear safety" (at the expense of sources specified in clause 8, part three, Article 29 of this Code);

{Paragraph 8, part 4 of Article 30 has been deleted under Law No. 79-VIII of 28 December 2014}

9) measures specified in paragraphs fourteen – twenty-one, part four, Article 13 of this Code (at the expense of the sources specified in clause 10, part three, Article 29 of this Code);

10) accumulation (increase) of material values of the state material reserve (at the expense of 90 per cent of the sources specified in clause 11, part three, Article 29 of this Code);

11) maintenance of the state material reserve (at the expense of 10 per cent of the sources specified in clause 11, part three, Article 29 of this Code, and sources specified in clause 12, part three, Article 29 of this Code);

12) implementation of programmes and measures within the framework of assistance programmes and grants of the European Union, governments of foreign states, international organisations, donor institutions (at the expense of the sources specified in clause 13, part three, Article 29 of this Code);

{Paragraph 12, part 4 of Article 30 as revised by Law No. 914-VIII of 24 December 2015; as amended by Law No. 2621-VIII of 22 November 2018}

13) state preferential lending to individual rural developers for construction (reconstruction) and purchase of housing (at the expense of the sources specified in clause 1, part three of this article);

14) implementation of the State programme of providing youth with housing (at the expense of the sources specified in clause 2, part three of this article);

15) granting loans to farms (at the expense of the sources specified in clause 3, part three of this article);

15-1) forest management and hunting, protection and preservation of forests in the forest fund (at the expense of the sources specified in clause 13-4 of part three of Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 15-1 under Law No. 2621-VIII of 22 November 2018}

16) formation by the Agrarian Fund of the state intervention fund, expenses of the Agrarian fund connected with a complex of actions for storage, transportation, processing and export of objects of the state price regulation of the state intervention fund, and also purchase of material and technical resources for needs of agricultural commodity producers account of the sources specified in clause 4, part three of this article);

17) implementation of programmes and measures specified by the law on the State Budget of Ukraine (at the expense of sources specified in clause 2, part three, Article 15, clause 14, part three, Article 29 and clause 5, part three, this Article of this Code);

18) implementation of expenses related to the organisation and conduct of enforcement actions, payment of remuneration to state executors (at the expense of the sources specified in clause 13-1, part three, Article 29 of this Code). Procedure for payment and amounts of remuneration to the state executor shall be established by the Cabinet of Ministers of Ukraine;

{Part four of Article 30 has been supplemented with paragraph 18 under Law No. 79-VIII of 28 December 2014}

19) implementation of the activities of the central executive body ensuring the implementation of state policy in the field of civil aviation, participation and representation of Ukraine in international aviation organisations (at the expense of sources specified in clause 6-1, part three, Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 19 under Law No. 176-VIII of 10 February 2015}

20) implementation of programmes and measures for social protection of persons with disabilities in accordance with the law (at the expense of the sources specified in clause 13-1, part three, Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 20 under Law No. 176-VIII of 10 February 2015}

21) implementation of measures for implementation, development, restoration and operation of the system of fixing offences in the field of road safety in automatic mode (at the expense of sources specified in clause 13-5, part three, Article 29 of this Code), including implementation of such measures by the Ministry of Internal Affairs of Ukraine and the National Police of Ukraine (at the expense of 40 per cent of the sources specified in clause 13-5, part three, Article 29 of this Code).

{Part four of Article 30 has been supplemented with paragraph 21 under Law No. 2621-VIII of 22 November 2018}

22) state support of cinematography (at the expense of the defined sources defined in clauses 13-6, 13-7 and 13-8, part three, Article 29 of this Code);

{Part four of Article 30 has been supplemented with paragraph 22 under Law No. 76-IX of 12 September 2019}

23) carrying out intelligence activities of the intelligence bodies of Ukraine (at the expense of the sources specified in clause 12-1, part three, Article 29 of this Code).

{Part 4 of Article 30 has been supplemented with clause 23 under Law No. 1081-IX of 15 December 2020}

{Article 30 has been supplemented with Part 4 following Law No. 5428-VI of 16 October 2012}

5. Expenditures for payments in accordance with budgetary obligations under state derivatives shall be made at the expense of the State Budget of Ukraine for the relevant budget period.

{Article 30 has been supplemented with part 5 under Law No. 700-VIII of 17 September 2015}

Article 31. Secret expenses

1. The state budget of Ukraine shall contain an explanation of all expenditures, except for expenditures related to state secrets (secret expenditures).

2. Secret expenditures provided for the activities of public authorities in the interests of national security shall be included in the State Budget of Ukraine without details.

3. Control over secret expenditures shall be exercised by the Accounting Chamber and the Ministry of Finance of Ukraine.

4. Reports on secret expenditures shall be preliminarily considered by the Verkhovna Rada Committee on Budget, committees of the Verkhovna Rada of Ukraine, which shall be responsible for legislative support of law enforcement, anti-corruption, national security and defense.

{Part 4 of Article 31 as amended by Law No. 293-IX of 14 November 2019}

5. Reports on secret expenditures shall be considered by the Verkhovna Rada of Ukraine at a closed plenary session.

Chapter 6. DRAWING UP THE BUDGET DECLARATION AND THE DRAFT STATE BUDGET OF UKRAINE

{Title of Chapter 6 as amended by Law No. 2646-VIII of 06 December 2018}

Article 32. Organisational principles of drafting the Budget Declaration and the draft State Budget of Ukraine

1. The Cabinet of Ministers of Ukraine shall develop the Budget Declaration and the draft law on the State Budget of Ukraine.

2. The Ministry of Finance of Ukraine is responsible for drafting the Budget Declaration and the draft law on the State Budget of Ukraine, determines the basic organisational and methodological principles of budget planning used for the development of the Budget Declaration and the draft State Budget of Ukraine.

{Article 32 as amended by Law No. 288-VIII of 07 April 2015; as revised by Law No. 2646-VIII of 06 December 2018}

Article 32-1. Fiscal risk management

1. In order to minimise the impact of financial risks on the state budget indicators, the Ministry of Finance of Ukraine manages fiscal risks by identifying, assessing, monitoring and developing measures to minimise them.

Organisational and methodological principles of financial risk assessment are approved by the Cabinet of Ministers of Ukraine.

The Ministry of Finance of Ukraine conducts an overall assessment of fiscal risks and their impact on state budget indicators in the medium term and prepares information on fiscal risks (including contingent liabilities and quasi-fiscal operations) and their impact on state budget indicators in the planned budget period. Information on fiscal risks is published on the official website of the Ministry of Finance of Ukraine after the submission of the draft law on the State Budget of Ukraine to the Verkhovna Rada of Ukraine.

2. To exercise the powers specified in the first paragraph, part one, this Article, the Ministry of Finance of Ukraine shall:

1) receives free of charge from central and local executive bodies, funds of compulsory state social and pension insurance, financial institutions, economic entities of the public sector of the economy and companies, which 50 and more per cent of shares (stakes) belong to companies, share states in which is 100 per cent:

financial statements, data and other information necessary to assess fiscal risks;

written explanations on issues arising during the fiscal risks assessment;

2) provides the entities specified in clause 1, this part of the article with mandatory recommendations for consideration of measures to be taken to minimise the impact of financial risks on the state budget, and also receives information from these entities on the consideration of such recommendations and the state of their implementation.

The Ministry of Finance of Ukraine has the right to send written requests to the entities specified in clause 1 of this part to obtain the information specified in this part of the article, indicating the deadline for consideration of such requests.

3. Entities defined in clause 1, part two of this Article:

1) provide information at the request of the Ministry of Finance of Ukraine in accordance with the requirements of part two of this article;

2) submit to the Ministry of Finance of Ukraine proposals for taking measures that may reduce the impact of fiscal risks on the state budget;

3) take measures aimed at preventing the occurrence of fiscal risks and minimising their impact on the state budget;

4) inform the Ministry of Finance of Ukraine about the fiscal risks identified by them and provide proposals for measures to minimise them;

5) participate in the preparation of information on fiscal risks (including contingent liabilities and quasi-fiscal operations) and their impact on the state budget indicators in the planned budget period;

6) participate in the working groups, commissions, meetings on fiscal risk management.

4. The Ministry of Finance of Ukraine in case of non-compliance by the entities specified in clause 1, part two of this article, the requirements of parts two and three of this article shall inform the Cabinet of Ministers of Ukraine to take measures in accordance with the law.

5. Entities specified in clause 1, part two of this article, for failure to provide the Ministry of Finance of Ukraine with untimely information necessary for the assessment of fiscal risks, non-compliance with the requirements of part three of this article shall be liable under law.

{The Code has been supplemented with Article 32-1 under Law No. 2646-VIII of 06 December 2018}

Article 33. Preparation and approval of the Budget Declaration

{Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the provisions of Article 33 do not apply – see Clause 2, Section II of the Law No. 553-IX of 13 April 2020}

1. The Ministry of Finance of Ukraine annually together with other chief administrators of the state budget in accordance with the goals and priorities set out in the annual address of the President of Ukraine to the Verkhovna Rada of Ukraine on the internal and external situation of Ukraine, the Cabinet of Ministers of Ukraine Development, draws up the Budget Declaration – a document of medium-term budget planning, which defines the principles of budget policy and indicators of the state budget for the medium term and is the basis for drafting the State Budget of Ukraine and local budget forecasts.

The Ministry of Finance of Ukraine holds consultations with members of the Cabinet of Ministers of Ukraine and independent experts during the preparation of the Budget Declaration for approval of budget policy (including budget indicators for the medium term).

2. The indicators of the Budget Declaration shall be determined taking into account the provisions and indicators defined for the relevant budget periods by the Budget Declaration approved in the previous budget period.

In this case, the indicators of the Budget Declaration may differ from the indicators determined for the respective budget periods by the Budget Declaration approved in the previous budget period, in the case of:

1) deviation of the assessment of the main forecast macro indicators of economic and social development of Ukraine from the forecast taken into account in the Budget Declaration approved in the previous budget period;

2) deviation of budget indicators defined by the law on the State Budget of Ukraine from similar indicators defined in the Budget Declaration approved in the previous budget period;

3) adoption of new legislative and other normative legal acts that affect the indicators of the state budget in the medium term.

3. The National Bank of Ukraine shall submit to the President of Ukraine, the Verkhovna Rada of Ukraine and the Cabinet of Ministers of Ukraine:

by March 1 of the year preceding the planned year – indicative information on the calculation of the part of the projected profit for distribution, which will be transferred to the state budget for the medium term;

by March 15 of the year preceding the planned year – forecast monetary indicators and indicators of exchange rate policy for the medium term, including the hryvnia exchange rate on average for the year and at the end of the year;

by April 15 of the year preceding the planned year – updated information on the calculation of the part of the projected profit for distribution, which will be transferred to the state budget for the medium term.

The central body of executive power, which ensures the formation of state policy in the field of economic and social development, submits to the Ministry of Finance of Ukraine:

by March 1 of the year preceding the planned year – the approximate main forecast macro indicators of economic and social development of Ukraine for the medium term;

by April 15 of the year preceding the planned year, the main forecast macro indicators of economic and social development of Ukraine for the medium term have been updated.

By March 1 of the year preceding the planned year, the High Council of Justice shall submit proposals on the priority tasks of financial support of the judiciary and its independence to the Cabinet of Ministers of Ukraine.

4. The Ministry of Finance of Ukraine based on the main forecast macro indicators of economic and social development of Ukraine for the medium term and analysis of budget execution in previous and current budget periods forecasts the state budget revenues, determines the state budget funding, loan repayments and indicative expenditure limits of the state budget and loans from the state budget (including expenditures and loans for national security and defence) for the medium term.

The National Security and Defense Council of Ukraine based on the expenditures and loans for national security and defence for the medium term, informed by the Ministry of Finance of Ukraine, prepares and submits reasonable proposals for the distribution of this amount among the key spending units to the Ministry of Finance of Ukraine taking into account programme documents in the field of national security and defence no later than April 15 of the year preceding the planned.

5. The Ministry of Finance of Ukraine shall develop and provides the main managers of state budget funds with instructions on preparation of proposals for the Budget Declaration and indicative limits of state budget expenditures and granting loans from the state budget for the medium term within the specified timeframe.

Instructions for preparing proposals for the Budget Declaration may introduce additional financial restrictions, organisational and other requirements that must be met by all managers of state budget funds in the process of preparing proposals for the Budget Declaration.

The main managers of the state budget funds prepare proposals for the Budget Declaration, including information on the objectives of state policy in the relevant field of activity, which formation and/or implementation is provided by the main administrator of the state budget, and indicators of their achievement in accordance with the requirements of the instructions and indicative limits of state budget expenditures and the provision of loans from the state budget for the medium term.

The Ministry of Finance of Ukraine analyzes the proposals submitted by the main managers of the state budget to the Budget Declaration for compliance with the provided indicative limits of state budget expenditures and the provision of loans from the state budget and the requirements of the proven instructions.

Based on this analysis, the Minister of Finance of Ukraine decides to include the proposals of the main managers of state budget funds in the Budget Declaration.

The Ministry of Finance of Ukraine is taking measures to eliminate disagreements with the main managers of state budget funds. If no agreement is reached, the Ministry of Finance of Ukraine shall attach the relevant information to the Budget Declaration submitted to the Cabinet of Ministers of Ukraine.

6. The Ministry of Finance of Ukraine shall submit the Budget Declaration to the Cabinet of Ministers of Ukraine by May 15 of the year preceding the planned year.

7. Every year, no later than June 1 of the year preceding the planned year, the Cabinet of Ministers of Ukraine approves the Budget Declaration, which acquires the status of an official document and is formalised by a resolution of the Cabinet of Ministers of Ukraine. The Budget Declaration approved in the previous budget period shall cease to be valid from the date of approval of the Budget Declaration.

8. The Cabinet of Ministers of Ukraine shall submit the Budget Declaration together with the financial and economic substantiation to the Verkhovna Rada of Ukraine within three days from the date of its approval. The financial and economic justification shall include calculations and explanations to the provisions and indicators defined by the Budget Declaration (including explanations of differences from the Budget Declaration approved in the previous budget period, indicative indicators of state budget expenditures by functional classification of expenditures and budget crediting).

The Verkhovna Rada of Ukraine considers the Budget Declaration according to a special procedure determined by the Rules of Procedure of the Verkhovna Rada of Ukraine.

9. The budget declaration shall contain provisions on:

1) the main forecast macroeconomic and social development indicators of Ukraine (indicating the indicators of nominal and real gross domestic product, consumer price indices and producer prices, unemployment rate, assumptions about the hryvnia exchange rate against the US dollar on average for the year and at the end of the year, and other indicators taken into account during the development of the Budget Declaration);

2) general indicators of revenues and financing of the state budget, loans repayment to the state budget, general limits of state budget expenditures and granting of loans from the state budget (with division into general and special funds);

3) the share of the projected annual volume of gross domestic product redistributed through the consolidated budget of Ukraine, the priority tasks of tax policy, indicators for the main types of state budget revenues (divided into general and special funds);

4) deficit (surplus) of the state budget, indicators on the main sources of financing of the state budget (with division into general and special funds), and the state debt guaranteed by the state of debt and granting of the state guarantees;

5) the size of the minimum wage, subsistence level and the level of its provision;

6) priority tasks of financial support for the implementation of state policy in various spheres of activity (including financial support of the judiciary and its independence);

7) the volume of state capital investments for the development and implementation of state investment projects indicating the priority areas for such capital investments, the amount of funds of the state fund of regional development, the amount of state road fund (in areas specified in part three, Article 24-2 of this Code);

{Clause 7, part nine, Article 33 as amended by Law No. 283-IX of 12 November 2019}

8) limit indicators of state budget expenditures and granting loans from the state budget to the main managers of state budget funds (with division into general and special funds), as well as the goals of state policy in the relevant field of activity, formation and/or implementation of which is provided by the main state budget manager, and indicators of their achievement according to the results of the previous budget period, expected in the current budget period and forecast for the medium term within the defined thresholds;

9) the relationship of the state budget with local budgets (including provisions and indicators necessary for forecasting local budgets);

10) general assessment of fiscal risks and their impact on state budget indicators;

11) other issues necessary for drafting the law on the State Budget of Ukraine.

{Article 33 as amended by Laws No. 3614-VI of 07 July 2011, No. 3828-VI of 06 October 2011, No. 4731-VI of 17 May 2012, No. 79-VIII of 28 December 2014, No. 288-VIII of 07 April 2015, No. 1800-VIII of 21 December 2016; as revised by Law No. 2646-VIII of 06 December 2018}

Article 33-1. State capital investments for the development and implementation of state investment projects

1. For the purposes of this Article, part fifteen of Article 23, part five of Article 28, paragraph 7 of part nine of Article 33, paragraph 4-1, part one, Article 38 and paragraph 15-1 of part two of Article 61 of this Code shall be understood as public investment projects specified in paragraph 20-1 of the first part of Article 2 of this Code, except for projects implemented with state loans (loans) from foreign countries, foreign financial institutions and international financial organizations, and projects implemented at the expense of the state fund for regional development.

2. The amount of state capital investments for the development and implementation of state investment projects for the medium term is determined by the Budget Declaration within the general limits of state budget expenditures and the provision of loans from the state budget.

3. The central executive body ensuring the formation of state policy in the field of economic and social development, with the participation of the Verkhovna Rada Committee on Budget within three weeks after approval of the Budget Declaration by the Cabinet of Ministers of Ukraine prepares proposals for distribution of state capital investments for development and implementation public investment projects for the medium term between the main managers of budget funds based on the results of selection of public investment projects.

4. Selection of state investment projects shall be carried out by the Interdepartmental Commission on State Investment Projects in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

5. The Interdepartmental Commission on State Investment Projects is a collegial body, which provisions and composition are approved by the Cabinet of Ministers of Ukraine. The Interdepartmental Commission on State Investment Projects consists of members of the Cabinet of Ministers of Ukraine, members of the Verkhovna Rada Committee on Budget by decision of this committee (at least 50 per cent of such commission), representatives of central executive bodies and other state bodies.

6. The distribution of state capital investments for the implementation of new state investment projects is carried out provided that within the volume of state capital investments for the planned budget period not less than 70 per cent will be directed to the continuation (completion) of state investment projects in accordance with their implementation plans and deadlines. commissioning of fixed assets.

7. State capital investments for the development and implementation of state investment projects are included in the draft law on the State Budget of Ukraine based on the results of such distribution.

{The Code has been supplemented with Article 33-1 under Law No. 2646-VIII of 06 December 2018}

Article 34. Instructions for preparing budget requests

1. In order to prepare the draft State Budget of Ukraine, the Ministry of Finance of Ukraine shall develop and submit instructions on the budget requests preparation to the main administrators of budget funds within the time limits set by the Ministry of Finance of Ukraine.

2. Instructions for budget request preparation may introduce financial restrictions, organisational and other requirements that must be met by all budget managers in the process of preparing budget requests.

{Part 2 of Article 34 as amended by Law No. 2646-VIII of 06 December 2018}

{Part 3 of Article 34 has been deleted under Law No. 79-VIII of 28 December 2014}

{Part four of Article 34 has been deleted under Law No. 2646-VIII of 06 December 2018}

Article 35. Drawing up a budget request

1. Key spending units ensure budget requests preparation for submission to the Ministry of Finance of Ukraine in accordance with the Budget Declaration and requirements of instructions on preparation of budget requests taking into account medium-term activity plans, reports on budget programme passports, results of budget programme efficiency evaluations, conclusions on results control measures carried out by the bodies authorised to monitor compliance with budget legislation, decisions of the Cabinet of Ministers of Ukraine based on the results of the review of state budget expenditures within the time and procedure established by the Ministry of Finance of Ukraine.

{Part one of Article 35 as revised by Law No. 2646-VIII of 06 December 2018}

2. Key spending units include in budget requests the number of long-term commitments for energy service for the relevant budget periods, indicators for budget programmes providing several years of investment projects, if approved or selected in the manner prescribed by law and on the basis of calculations the number of costs and benefits for the implementation of such investment projects, and/or signed agreements with foreign countries, foreign financial institutions, international financial organizations.

{Part 2 of Article 35as amended by Laws No. 288-VIII of 07 April 2015, No. 328-VIII of 09 April 2015; as revised by LawNo. 2646-VIII of 06 December 2018}

3. Key spending units shall ensure timeliness, reliability and content of budget requests submitted to the Ministry of Finance of Ukraine, which shall contain all information necessary for the analysis of draft State Budget of Ukraine and medium-term budget indicators in general, as required by the Ministry of Finance of Ukraine.

{Part 3 of Article 35 as amended by Law No. 2646-VIII of 06 December 2018}

4. If the budget request foresees the provision of state aid to economic entities at the expense of the state budget in any form, the key spending units shall attach to the budget request a copy of the decision of the Authorised Body on State Aid adopted following the notification of new state aid. cases of state aid in accordance with the Law of Ukraine "On State Aid to Business Entities", or notify in writing of their exemption from the obligation to notify new state aid with reference to the provisions of this Law and regulations establishing the relevant conditions for release.

{Article 35 has been supplemented with part 4 under Law No. 416-VIII of 14 May 2015}

Article 36. Analysis of budget requests and development of the draft State Budget of Ukraine

1. The Ministry of Finance of Ukraine analyzes the budget request submitted by the chief administrator of budget funds for its compliance with the Budget Declaration at any stage of preparation and consideration of the draft State Budget of Ukraine, as well as the efficiency of budget funds, including on the basis of implementation reports passports of budget programmes, results of evaluation of efficiency of budget programmes, conclusions on results of control measures carried out by the bodies authorised to control observance of the budget legislation, decisions of the Cabinet of Ministers of Ukraine on results of a review of expenses of the state budget.

Based on the results of the analysis, the Minister of Finance of Ukraine decides to include the budget request in the draft State Budget of Ukraine before submitting it to the Cabinet of Ministers of Ukraine.

{Part 1 of Article 36 as revised by Law No. 2646-VIII of 06 December 2018}

{Part 2 of Article 36 has been deleted under Law No. 79-VIII of 28 December 2014}

3. Based on the analysis of budget requests submitted in accordance with Article 35 of this Code, and taking into account the provisions and indicators for the planning budget period defined by the Budget Declaration approved in the year preceding the planning year and recommendations of the Verkhovna Rada of Ukraine such recommendations are approved in accordance with part six of Article 152 of the Rules of Procedure of the Verkhovna Rada of Ukraine) the Ministry of Finance of Ukraine is preparing a draft law on the State Budget of Ukraine.

{Part 3 of Article 36 as amended by Law No. 2646-VIII of 06 December 2018}

4. The Ministry of Finance of Ukraine during the preparation of the draft State Budget of Ukraine shall consider and take measures to eliminate differences with the main managers of budget funds. If no agreement is reached, the Ministry of Finance of Ukraine shall attach its opinion on uncoordinated issues to the said project, which shall be submitted to the Cabinet of Ministers of Ukraine.

Article 37. Approval by the Cabinet of Ministers of Ukraine for the draft law on the State Budget of Ukraine

1. The Ministry of Finance of Ukraine shall submit a draft law on the State Budget of Ukraine to the Cabinet of Ministers of Ukraine and make proposals for consideration on the terms and procedure for consideration of this draft in the Cabinet of Ministers of Ukraine.

2. The Cabinet of Ministers of Ukraine shall submit this draft law before the approval of the draft law on the State Budget of Ukraine:

National Security and Defense Council of Ukraine on budget items related to national security and defence of Ukraine;

The High Council of Justice on budget items related to the functioning of courts and the activities of judges, bodies and institutions of the justice system.

{Part 2 of Article 37 as revised by LawNo. 1800-VIII of 21 December 2016}

3. The Cabinet of Ministers of Ukraine shall approve the draft law on the State Budget of Ukraine and submit it together with the relevant materials to the Verkhovna Rada of Ukraine and the President of Ukraine no later than September 15 of the year preceding the planned one.

{Part 3 of Article 37 as amended by Law No. 2646-VIII dated 6 December 2018}

4. The key spending units shall ensure the clarification of budget requests taking into account the decisions taken by the Cabinet of Ministers of Ukraine to finalise the draft law on the State Budget of Ukraine for submission to the Verkhovna Rada of Ukraine and submit them to the Ministry of Finance of Ukraine within three days.

{Article 37 has been supplemented with part 4 under Law No. 79-VIII of 28 December 2014}

Article 38. Materials attached to the draft law on the State Budget of Ukraine

1. The following shall be submitted together with the draft law on the State Budget of Ukraine approved by the Cabinet of Ministers of Ukraine:

1) an explanatory note to the draft law on the State Budget of Ukraine, which shall contain:

a) information on the economic situation of the state and the main forecast macro indicators of economic and social development of Ukraine for the planned budget period, which are the basis of the draft State Budget of Ukraine;

{Subclause “а”, clause 1, part 1 of Article 38 as amended by Law No. 2646-VIII of 06 December 2018}

b) assessment of revenue indicators of the draft state budget together with detailed calculations of such indicators in terms of budget revenues classification (indicating the tax base, rates of taxes and fees, tax benefits and tax debt);

{Subclause “b” of Clause 1, part 1 of Article 38 as revised by Law No. 2646-VIII of 06 December 2018}

c) explanation for the main provisions of the draft State Budget of Ukraine and the draft law on the State Budget of Ukraine, including information on indicators on revenues, financing, expenditures and lending of the state budget with details in terms of budget classification and comparison with relevant actual indicators for the previous budget period and targets for the current budget period;

{Subclause “c” of Clause 1, part 1 of Article 38 as revised by Law No. 2646-VIII of 06 December 2018}

d) information on taking into account the Budget Declaration and recommendations of the Verkhovna Rada of Ukraine on budget policy (if such recommendations are approved in accordance with part six of Article 152 of the Rules of Procedure of the Verkhovna Rada of Ukraine);

{Sub-clause “d” of Clause 1, part 1 of Article 38 as amended by Law No. 2646-VIII of 06 December 2018}

e) analytical data, calculations substantiating the features of intergovernmental relations, in particular:

detailed calculations for the amounts of basic and reverse subsidies by types of local budgets, including calculations of indices of tax capacity for local budgets;

calculations for subventions from the state budget to local budgets by their types and local budgets with detailed financial and quantitative indicators;

{Paragraph 3, sub-clause "d", clause 1, part 1 of Article 38 as amended by Law No. 293-IX of 14 November 2019}

{Paragraph 4, sub-clause "d", clause 1, part 1 of Article 38 has been deleted under Law No. 1081-IX of 15 December 2020}

{Subclause "g", clause 1, part 1 of Article 38 as revised by Law No. 79-VIII of 28 December 2014}

e) explanations on the indicators of financing the draft state budget (including indicators of state borrowings, revenues from privatisation of state property, repayment of state debt), provision of state guarantees, status and maximum amounts of state debt and state-guaranteed debt;

{Sub-clause “e” of Clause 1, part 1 of Article 38 as amended by Law No. 79-VIII of 28 December 2014; as revised by Law No. 2646-VIII of 06 December 2018}

{Subclause “e” of Clause 1, part 1 of Article 38 has been deleted under Law No. 293-IX of 14 November 2019}

{Subclause “f” of Clause 1, part 1 of Article 38 has been deleted under Law No. 293-IX of 14 November 2019}

g) calculations for the amount of compensation at the expense of the state budget for losses of economic entities due to the adoption of decisions on the regulation of prices and tariffs for certain products, goods and services by the Cabinet of Ministers of Ukraine and other central executive bodies;

2) forecast indicators for the consolidated budget of Ukraine (including the assessment of the State Budget of Ukraine and local budgets) in accordance with the budget classification;

{Paragraph 2, part 1 of Article 38 as mended by Law No. 2646-VIII of 06 December 2018}

2-1) substantiation of calculation for the value of the subsistence minimum for the relevant budget period per month per person, as well as separately for the main social and demographic groups of the population;

{Part 1, Article 38 has been supplemented with paragraph 2-1 under Law No. 293-IX of 14 November 2019}

3) a list of benefits from taxes and fees with the calculation for losses of budget revenues from their provision;

4) lists and amounts of funds under state target programmes, which are included by the main managers of state budget funds in the budget programmes provided for in the draft law on the State Budget of Ukraine;

4-1) a list of public investment projects indicating the total cost of each project, the total amount of state budget expenditures required for the development and implementation of each project, including the state budget expenditures required to complete each project, and the amount of such expenditures for the relevant budget period in terms of budget programmes. The preparation of such materials is carried out by the central executive body ensuring the formation of state policy in the field of economic and social development, based on the results of the distribution carried out in accordance with Article 33-1 of this Code;

{Part 1, Article 38 has been supplemented with paragraph 4-1 under Law No. 288-VIII of 07 April 2015; as amended by Law No. 2646-VIII of 06 December 2018}

5) information on the total amount of public debt and state-guaranteed debt at the end of the planned budget period (including the type of debt obligation), as well as the costs of fulfilling government debt and guarantee obligations for the current and subsequent budget periods until full repayment such liabilities (including public debt service expenditures) and the structure of such expenditures;

{Paragraph 5, part 1 of Article 38 as revised by Law No. 2646-VIII of 06 December 2018}

6) the plan of state borrowings for the next budget period, as well as the list of investment projects for which state guarantees may be provided in the next budget period. The plan of state borrowings for the next budget period should include a list of credits (loans) indicating creditors, types, purpose, name of currency, term and interest rate of state borrowings, as well as the state of concluding credit agreements;

6-1) lists and amounts of long-term liabilities for energy service under budget programmes until the full completion of settlements with energy service providers;

{Part 1, Article 38 has been supplemented with paragraph 6-1 under Law No. 328-VIII of 09 April 2015}

6-2) lists and amounts of medium-term liabilities in the field of health care under budgetary programmes until full settlement with suppliers of medicines, medical devices and aids to them and / or providers of related services under such agreements (contracts);

{Part 1 of Article 38 has been supplemented with Clause 6-2 under Law No. 1079-IX of 15 December 2020}

{Paragraph 7, part 1 of Article 38 has been deleted under Law No. 2646-VIII of 06 December 2018}

8) a report on the implementation of the State Budget of Ukraine in the current budget period;

9) information on the purpose, objectives and performance indicators which each key spending unit intends to achieve during the implementation of budget programmes, in the form specified by the Ministry of Finance of Ukraine;

{Paragraph 9, part 1 of Article 38 as revised by Law No. 293-IX of 14 November 2019}

9-1) information on the goals of state policy in the relevant field of activity, which formation and/or implementation is provided by the key spending unit, and indicators of their achievement in the previous budget period expected in the current budget period and forecast for the medium term (submitted to the Verkhovna Rada Committee on Budget);

{Part 1, Article 38 has been supplemented with paragraph 9-1 under Law No. 2646-VIII of 06 December 2018}

10) a protocol on the consultations results of the Cabinet of Ministers of Ukraine with all-Ukrainian associations of local self-government bodies;

11) information on taking into account the proposals of the National Security and Defense Council of Ukraine to the draft law on the State Budget of Ukraine on articles related to national security and defence of Ukraine (with a reasoned justification);

11-1) information on taking into account the proposals of the High Council of Justice to the draft law on the State Budget of Ukraine on budget items related to the functioning of courts and the activities of judges, bodies and institutions of the justice system (with a reasoned justification);

{Part 1, Article 38 has been supplemented with paragraph 11-1 under Law No. 1800-VIII of 21 December 2016}

{Paragraph 12, part 1 of Article 38 has been deleted under Law No. 2646-VIII of 06 December 2018}

12-1) information on fiscal risks (including contingent liabilities and quasi-fiscal operations) and their impact on the state budget indicators in the planned budget period;

{Part 1, Article 38 has been supplemented with paragraph 12-1 under Law No. 3614-VI of 07 July 2011; as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 2646-VIII of 06 December 2018}

12-2) information on the implementation of the action plan to bring the total amount of public debt and state-guaranteed debt to the established requirements (in case of approval of such a plan);

{Part 1, Article 38 has been supplemented with paragraph 12-2 under Law No. 79-VIII of 28 December 2014}

13) other materials, which volume and form are determined by the Cabinet of Ministers of Ukraine.

In case the Cabinet of Ministers of Ukraine changes the indicators of intergovernmental transfers during the consideration and finalisation of the draft law on the State Budget of Ukraine, the Cabinet of Ministers of Ukraine shall submit calculations in accordance with the requirements of sub-clause "e", clause 1 of this part.

{Part 2 of Article 38 has been deleted under Law No. 79-VIII of 28 December 2014}

Chapter 7. CONSIDERATION AND APPROVAL OF THE STATE BUDGET OF UKRAINE

Article 39. CONSIDERATION AND APPROVAL OF THE STATE BUDGET OF UKRAINE

1. Consideration and approval of the State Budget of Ukraine shall take place in the Verkhovna Rada of Ukraine according to a special procedure determined by the Rules of Procedure of the Verkhovna Rada of Ukraine.

2. The Cabinet of Ministers of Ukraine shall submit justifications and calculations on budget indicators of such law, changed compared to consideration in the first reading, to the President of Ukraine within three days from the date of adoption by the Verkhovna Rada of Ukraine of the law on the State Budget of Ukraine.

3. If the President of Ukraine returns the law on the State Budget of Ukraine to the Verkhovna Rada of Ukraine for reconsideration with motivated and formulated proposals providing for changes in budget indicators, the Cabinet of Ministers of Ukraine shall within a week submit to the Verkhovna Rada of Ukraine changes to the indicators specified in the text , and updated annexes to it in accordance with the proposals of the President of Ukraine.

Article 40. Subject of regulation of the law on the State Budget of Ukraine

1. The Law on the State Budget of Ukraine determines:

1) total amounts of revenues, expenditures and lending to the state budget (with the division into general and special funds);

{Paragraph 1, part 1 of Article 40 as amended by Law No. 176-VIII of 10 February 2015}

2) {Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the rules, clause 2, part 1 of Article 40 on determining the maximum amount of state-guaranteed debt and the maximum amount of state guarantees – do not apply – see Clause 2, Section II of the Law No. 553-IX of 13 April 2020} the maximum amount of the annual deficit (surplus) of the state budget in the official budget period, the state and state-guaranteed debt at the end of the official budget period, the maximum amount and directions of state guarantees, as well as the authority to guarantee them in accordance with Article 17 of this Code;

{Paragraph 2, part 1 of Article 40 as amended by Laws No. 4318-VI of 12 January 2012, No. 79-VIII of 28 December 2014}

3) state budget revenues according to the budget classification (in the annex to the law);

3) state budget financing according to the budget classification (in the annexe to the law);

5) budget allocations to the key spending units according to the budget classification with mandatory allocation of consumption expenditures (including expenditures on wages, utilities and energy) and development expenditures (in the annexes to the law);

{Paragraph 5, part 1 of Article 40 as amended by Law No. 293-IX of 14 November 2019}

6) budget allocations of inter-budget transfers (in annexes to the law);

7) the amount of the circulating balance of the state budget;

8) the amount of the minimum wage for the relevant budget period;

9) the size of the subsistence minimum for the relevant budget period per month per person, as well as separately for the main social and demographic groups and the level of subsistence for the relevant budget period;

10) a list of credits (loans) attracted by the state from foreign states, foreign financial institutions and international financial organisations for the implementation of investment projects, indicating creditors, total amounts of credits (loans) and the volume of their attraction in the relevant budget period in terms of budget programmes (in the annex to the law);

{Paragraph 10, part 1 of Article 40 as amended by Law No. 2646-VIII of 06 December 2018}

11) additional provisions governing the budget execution process.

2. Expenditures and lending by the key spending units shall be detailed in the Law on the State Budget of Ukraine by programme classification of expenditures and crediting of the state budget, by groups of functional classification of expenditures and budget crediting and separate categories of economic classification of budget expenditures and classification of budget crediting.

Article 41. Features of formation of budget revenues and implementation of budget expenditures in case of untimely entry into force of the law on the State Budget of Ukraine

1. If the law on the State Budget of Ukraine has not entered into force before the beginning of the new budget period, the Cabinet of Ministers of Ukraine has the right to carry out expenditures of the State Budget of Ukraine in accordance with the following requirements:

1) expenditures of the State Budget of Ukraine may be made only on budget programmes, budget allocations for which are established by the law on the State Budget of Ukraine for the previous budget period and simultaneously provided in the draft law on the State Budget of Ukraine for the next budget period, which fully retain the target restrictions;

2) monthly budget allocations of the general fund of the State Budget of Ukraine in total may not exceed 1/12 of the budget allocations specified by the law on the State Budget of Ukraine for the previous budget period (except as provided for in part six of Article 16 and part four of Article 23 of this Code, as well as clauses 4 and 5, part two of this Article).

2. Before the entry into force of the law on the State Budget of Ukraine for the current budget period:

1) it is prohibited to make expenditures from the general fund of the state budget in terms of capital expenditures and loans from the budget, except for capital expenditures related to the elimination of accidents at socio-cultural facilities, housing, heating, energy, gas, water supply and sewerage, as well as costs associated with the onset of a special period or the imposition of a state of emergency, the declaration of certain areas as zones of environmental emergency and the allocation of funds from the reserve fund of the state budget;

{Paragraph 1, part 2 of Article 41 as amended by Law No. 79-VIII of 28 December 2014}

2) state borrowings may be made in an amount not exceeding the amount of expenditures for repayment of public debt in the relevant period, and state guarantees are not provided;

3) the norms of the law on the State Budget of Ukraine for the previous budget period apply, except for the norms which determine the general indicators of the state budget, budget assignments to the main managers of the state budget funds;

{Paragraph 3, part 2 of Article 41 as amended by Law No. 79-VIII of 28 December 2014}

4) social standards and social guarantees, including the subsistence level, the level of its provision, the minimum wage, benefits, compensations and guarantees to the population, in the current budget period are applied in the amounts and on the terms in force in December of the previous budget period;

5) transfer from the state budget to local budgets of the basic subsidy and other current transfers to local budgets, and also to the state budget from local budgets of the reverse subsidy is carried out according to the amounts defined in the draft law on the State Budget of Ukraine for the next budget period, submitted by the Cabinet of Ministers of Ukraine to the Verkhovna Rada of Ukraine.

{Paragraph 5, part 2 of Article 41 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 914-VIII of 24 December 2015; as revised by Law No. 2233-VIII of 07 December 2017}

Chapter 8. EXECUTION OF THE STATE BUDGET OF UKRAINE

Article 42. Arrangement of state budget execution

1. The Cabinet of Ministers of Ukraine shall ensure the implementation of the State Budget of Ukraine. The Ministry of Finance of Ukraine carries out the general organisation and management of the execution of the State budget of Ukraine, coordinates the activity of participants of the budgetary process concerning budget execution.

Article 43. Treasury service of budget funds

1. Treasury service of budgetary funds is applied at execution of the state budget and local budgets. The Treasury of Ukraine provides treasury servicing of budget funds on the basis of maintaining a single treasury account opened with the National Bank of Ukraine.

{Paragraph one, part 1 of Article 43as amended by Laws No. 3614-VI of 07 July 2011, No. 5463-VI of 16 October 2012}

Treasury service of budget funds provides:

1) settlement and cash service of managers and recipients of budget funds, as well as other clients in accordance with the legislation;

2) control over the exercise of budgetary powers in crediting budget revenues, registration of budget commitments made by managers of budget funds and making payments on these commitments;

{Paragraph 2, part 1 of Article 43 as amended by Law No. 2646-VIII of 06 December 2018}

3) accounting and reporting on the implementation of budgets in compliance with national regulations (standards) of accounting in the public sector and other regulations of the Ministry of Finance of Ukraine;

{Paragraph 3, part 1 of Article 43 as amended by Laws No. 79-VIII of 28 December 2014, No. 2646-VIII of 06 December 2018}

4) implementation of other operations with budget funds.

Budget institutions open accounts in the bodies that provide treasury servicing of budget funds (hereinafter – the bodies of the Treasury of Ukraine) in the manner prescribed by law.

{Paragraph 7, part 1 of Article 43 as amended by Law No. 176-VIII of 10 February 2015}

2. Servicing by the Treasury of Ukraine of institutions of Ukraine operating abroad, state and municipal institutions of professional higher and higher education, scientific institutions and cultural institutions in terms of own revenues received as payment for services provided by them in accordance with the main activity, charitable contributions and grants, as well as budget funds received as revenues from assistance programmes and grants of the European Union, foreign governments, international organisations, donor institutions and as loans (borrowings) attracted by the state from foreign countries, foreign financial institutions and international financial organisations in accordance with the procedure approved by the Cabinet of Ministers of Ukraine.

{Part 2 of Article 43as amended by Laws No. 79-VIII of 28 December 2014, No. 2646-VIII of 06 December 2018, No. 293-IX of 14 November 2019}

3. The Treasury of Ukraine shall not pay for services for processing electronic settlement documents and notifications in the system of electronic transfers of the National Bank of Ukraine and for transferring funds through foreign currency accounts opened with the National Bank of Ukraine.

4. The Treasury of Ukraine, in agreement with the Ministry of Finance of Ukraine, has the right to raise funds on a revolving basis of a single treasury account to cover temporary cash gaps in local budgets, the Pension Fund of Ukraine.

The Treasury of Ukraine, in agreement with the Ministry of Finance of Ukraine, has the right to raise on a repayable basis the funds of the single treasury account to cover temporary cash gaps in the general fund of the state budget in compliance with the state budget deficit.

{Part 4 of Article 43 has been supplemented with paragraph 2 under Law No. 1081-IX of 15 December 2020}

{Part 4 of Article 43 as amended by Law No. 79-VIII of 28 December 2014}

5. Amounts of temporary cash gaps of local budgets related to the provision of protected expenditures of the general fund, temporary cash gaps of the general fund of the state budget are covered by the Treasury of Ukraine within the current budget period, and temporary cash gaps of the Pension Fund of Ukraine related to pensions, – within the actual deficit of funds for this purpose at the expense of the single treasury account on contractual terms without accrual of interest for the use of these funds with their mandatory return by the end of the current budget period.

{Paragraph 1, part 5 of Article 43 as amended by Laws No. 79-VIII of 28 December 2014, No. 1081-IX of 15 December 2020}

In the case of placing local budget funds on deposits and/or servicing local budget funds in terms of development budget and own revenues of budgetary institutions in banks, the volume of temporary cash gaps in the general fund of such local budget is not covered by a single treasury account.

{Part 5 of Article 43 has been supplemented with a new paragraph under Law No. 79-VIII of 28 December 2014}

The procedure for conducting such operations shall be approved by the Cabinet of Ministers of Ukraine.

{Part 6 of Article 43 has been deleted under Law No. 79-VIII of 28 December 2014}

7. Own revenues of state and municipal institutions of professional higher and higher education, research institutions and cultural institutions, received as payment for services provided by them in accordance with the main activity, charitable contributions and grants, are credited to special registration accounts opened in the territorial body of the Treasury Ukraine, or to current accounts in public sector banks.

{Article 43 has been supplemented with part 7 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

8. Expenditures of the special fund of state and municipal institutions of professional higher and higher education, scientific institutions and cultural institutions, carried out at the expense of own receipts of budgetary institutions received as payment for services rendered by them according to the basic activity, charitable contributions and grants, are carried out in accordance with the procedure approved by the Cabinet of Ministers of Ukraine.

{Article 43 has been supplemented with part 8 under Law No. 79-VIII of 28 December 2014;as amended by Laws No. 176-VIII of 10 February 2015, No. 293-IX of 14 November 2019}

9. Settlement and cash servicing of own revenues of state and municipal institutions of professional higher and higher education, scientific institutions and cultural institutions is carried out in the territorial body of the Treasury of Ukraine or in public sector banks.

{Article 43 has been supplemented with part 9 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

Article 44. Distribution of the State Budget of Ukraine

1. The State Budget of Ukraine shall be executed according to the distribution approved by the Minister of Finance of Ukraine, according to the budget allocations within one month from the date of adoption of the Law on the State Budget of Ukraine. Until the approval of the distribution of the State Budget of Ukraine, the Minister of Finance of Ukraine shall approve the temporary schedule of the State Budget of Ukraine for the relevant period.

A copy of the approved distribution of the State Budget of Ukraine shall be submitted to the Accounting Chamber and the Committee of the Verkhovna Rada of Ukraine on Budget with further information on the changes made to it due to amendments to the Law on the State Budget of Ukraine.

2. The Ministry of Finance of Ukraine ensures compliance of the State Budget of Ukraine with the established budget purpose during the budget period, as well as compliance with the distribution of budget allocations to the key spending units for the general fund of the state budget for the periods of the year defined by this distribution with the corresponding forecast of revenues of the general fund of the state budget during the budget period.

Article 45. Execution of the State Budget of Ukraine by revenues

1. The Ministry of Finance of Ukraine performs forecasting and analysis of budget revenues.

{Part one of Article 45 as amended by Laws No. 2856-VI of 23 December 2010, No. 5463-VI of 16 October 2012, No. 242-VII of 16 May 2013}

2. The Treasury of Ukraine shall keep accounting records of all revenues of the State Budget of Ukraine and upon submission (conclusion) of the bodies controlling the collection of budget revenues, shall return (transfer) funds erroneously or excessively credited to the budget, transfer compensation of part of fines (financial) sanctions to buyers (consumers) at the expense of the amounts of penalties (financial) sanctions paid to the state budget, applied by such bodies as a result of the inspection on the application or complaint of the buyer (consumer) about violation by the taxpayer of the established procedure for settlement operations.

{Paragraph one, part 2 of Article 45 as amended by Law No. 1081-IX of 15 December 2020}

The transfer between the types of revenues and budgets of funds erroneously and/or excessively credited to the state budget through a single account is carried out by the Treasury of Ukraine upon the conclusion of tax authorities submitted on the date of formation of the register of payments from a single account according to the Tax Code of Ukraine.

{Part 2 of Article 45 has been supplemented with paragraph 2 under Law No. 1081-IX of 15 December 2020}

{Part 2 of Article 45 as amended by Laws No. 2233-VIII of 07 December 2017, No. 293-IX of 14 November 2019}

3. Bodies that control budget levy revenues collection shall ensure timely and full receipt of taxes and fees and other revenues to the state budget in accordance with the legislation. The Council of Ministers of the Autonomous Republic of Crimea, local state administrations and executive bodies of city (cities of the republican Autonomous Republic of Crimea and regional significance) councils coordinate the activities of the relevant collection bodies to implement the budget revenue indicators determined for the territories.

4. Taxes and fees and other revenues of the state budget shall be credited directly to the single treasury account and may not be accumulated on the accounts of bodies controlling the collection of budget revenues (except for institutions of Ukraine operating abroad).

The procedure for crediting to the state budget funds received by institutions of Ukraine operating abroad and own revenues of state and municipal institutions of professional higher and higher education, research institutions and cultural institutions received as payment for services provided by them in accordance with the main activity, charitable contributions and grants are set by the Cabinet of Ministers of Ukraine.

{Paragraph 2, part 4 of Article 45as amended by Laws No. 79-VIII of 28 December 2014, No. 293-IX of 14 November 2019}

5. Taxes and fees and other revenues of the state budget shall be recognised as credited to the state budget from the date of crediting to the single treasury account.

6. It is prohibited to make settlements with the budget in non-monetary form, including through offsetting, use of promissory notes, barter transactions and crediting of counter-payment claims in financial institutions, except for operations related to public debt and cases provided by the law on the State Budget of Ukraine.

{Paragraph 2, part 6 of Article 45 has been deleted under Law No. 242-VII of 16 May 2013}

7. Cabinet of Ministers of Ukraine determines the list of taxes, fees, and other budget revenues according to the budget classification in terms of bodies controlling the collection of budget revenues and general requirements for accounting budget revenues.

8. In case of a change in the location of business entities – taxpayers, the payment of taxes and fees specified by law after registration shall be made at the place of preliminary registration before the end of the current budget period.

9. Part of the profit to be distributed to the National Bank of Ukraine is determined and transferred to the State Budget of Ukraine after confirmation by the external audit and approval of annual financial statements by the Board of the National Bank of Ukraine and the formation of reserves by the National Bank in the manner and amounts specified by the Law of Ukraine "On the National Bank of Ukraine".

{Article 45 has been supplemented with part 9 under Law No. 542-VIII of 18 June 2015}

Article 46. Stages of budget execution by expenditures and crediting

1. The stages of budget execution by expenditures and lending are the following:

1) establishment of budget allocations to managers of budget funds based on and within the approved budget distribution;

2) approval of estimates, passports of budget programmes, as well as procedures for the use of budget funds;

{Paragraph 2, part 1 of Article 46 as amended by Law No. 2646-VIII of 06 December 2018}

3) budget commitments;

4) receipt of goods, works and services;

5) making payments in accordance with the budget commitments;

6) use of goods, works and services to perform the budget programmes tasks;

{Paragraph 6, part 1 of Article 46 as amended by Law No. 2646-VIII of 06 December 2018}

7) repayment of loans to the budget (for budget lending).

Article 47. Establishment of budget allocations to key spending units

1. Budget managers receive budget allocations, which is the basis for approval of estimates, in accordance with the approved budget schedule. Procedure for drawing up, reviewing, approving and basic requirements for the implementation of estimates of budgetary institutions shall be established by the Cabinet of Ministers of Ukraine.

2. The Treasury of Ukraine shall exercise control over the compliance of the budget managers' estimates with the budget schedule.

3. Budget managers shall ensure the management of budget allocations and control over the implementation of the procedures and requirements established by this Code.

Article 48. Making budget commitments

1. Budget managers shall make budget commitments and make payments only within the limits of the budget allocations established by the estimates, taking into account the need to fulfil budget commitments of previous years; long-term liabilities for energy service, taken into account by the Treasury of Ukraine; medium-term health commitments; medium-term obligations under contracts for construction, reconstruction, repair and maintenance of roads; regarding the tasks (projects) of the National Informatisation programme – after their coordination with the General State Customer of the National Informatisation programme.

{Paragraph one, part 1 of Article 48 as amended by Law No. 328-VIII of 09 April 2015; as revised by Law No. 283-IX of 12 November 2019; as amended by Laws No. 677-IX of 04 June 2020, No. 1081-IX of 15 December 2020}

Long-term obligation for energy service based on the documentary evidence in the prescribed manner of reducing the consumption of utilities and energy and expenditures for their payment for the reporting period (compared to such amounts (expenditures) that would be consumed (made) in the absence of energy) acquires status budget commitment in the amount determined in accordance with the terms of the energy service contract based on prices (tariffs) in force in the period for which the calculation is made, within the actual reduction of such expenditures.

{Part 1, Article 48 has been supplemented with paragraph 2 under Law No. 328-VIII of 09 April 2015}

The medium-term commitment in the field of health care acquires the status of a budgetary commitment in the amount determined in accordance with the terms of the agreement (contract) and/or unused appropriations provided for the implementation of programmes and implementation of centralised health care measures, provided its compliance with the limits of state budget expenditures which may be aimed at making medium-term commitments in the field of health care, defined by the law on the State Budget of Ukraine for the relevant period. The central executive body ensuring the formation and implementation of state policy in the field of health care constantly monitors the compliance of the person authorised to procure in the field of health care, medium-term commitments to the limits of state budget expenditures that can be directed for this purpose.

{Part 1of Article 48 has been supplemented with paragraph 3 under Law No. 1081-IX of 15 December 2020}

{Part one of Article 48 as amended by Law No. 5463-VI of 16 October 2012}

2. Managers of budget funds shall make budget commitments under the special fund of the budget exclusively within the limits of the relevant actual revenues of the special fund of the budget (subject to the requirements of part two, Article 57 of this Code).

Accounts payable of budget managers for medium-term liabilities under contracts for construction, reconstruction, repair and maintenance of roads at the end of the current budget period may not exceed the balance of the special fund of the state budget, formed from revenues that are the source of the state road fund and are used in the areas specified in clauses 1 and 2, part three, Article 24-2 of this Code.

{Part 2 of Article 48 has been supplemented with a new paragraph under Law No. 283-IX of 12 November 2019; as amended by Law No. 677-IX of 04 June 2020}

Budget managers have the right to take appropriate budget commitments under budget programmes, which are carried out with the state attracting credits (loans) from foreign countries, foreign financial institutions and international financial organisations for the implementation of investment projects, which expire in the current budget period in the fourth quarter of the current budget period in excess of the actual receipts of such credits (loans) subject to the written consent of the creditor to pay these obligations during the first quarter of the next budget period.

{Paragraph of part 2, Article 48 as amended by Law No. 2646-VIII of 06 December 2018}

3. Placing an order, concluding a contract, purchasing goods, services or performing other similar operations during the budget period, for which the budget manager has made a commitment without appropriate budget allocations or in excess of the powers established by this Code and the law on the State Budget of Ukraine about the local budget) are invalid. Such transactions do not give rise to budget commitments and do not create budget arrears.

4. Commitments made by a participant in the budget process without appropriate budget allocations or in excess of the powers established by this Code and the law on the State Budget of Ukraine (decision on the local budget) are not considered budget commitments (except for expenses incurred in accordance with part sixth of this Article) and are not subject to payment from the budget. Making such commitments is a violation of budget legislation. Budget expenditures to cover such liabilities are not incurred.

Claims of individuals and legal entities for damages and/or damages for obligations undertaken by budget managers without appropriate budget allocations or in excess of the powers established by this Code and the law on the State Budget of Ukraine (decision on the local budget), shall be collected from persons guilty of making such obligations in court.

5. The Treasury of Ukraine shall register and record budget managers' budget commitments and reflect them in the reporting on budget execution. When registering and accounting for budget commitments, the compliance of the areas of spending budget funds with the budget allocation, the passport of the budget programme is checked.

{Part 5 of Article 48 as amended by Law No. 2646-VIII of 06 December 2018}

6. Budget commitments for the payment of subsidies, assistance, benefits for the payment of consumed housing and communal services and communication services (in terms of the subscription fee for the use of a home phone), compensation to citizens from the budget, to which the relevant categories of citizens are entitled in accordance with the laws of Ukraine, are accounted for by the Treasury of Ukraine, regardless of the budget allocations determined for this purpose.

7. The procedure for registration and accounting of budget commitments of budget managers shall be determined by the Ministry of Finance of Ukraine.

{Part 7 of Article 48 as amended by Law No. 3614-VI of 07 July 2011}

Article 49. Making payments in accordance with budget commitments

1. The manager of budget funds after receiving goods, works and services in accordance with the terms of the budget commitment decides on their payment and issues a power of attorney to the payment of the Treasury of Ukraine unless otherwise provided by budget legislation defined by clause 5, part one, Article 4 of this Code.

2. The Treasury of Ukraine shall make payments on behalf of budget managers in the case of:

1) the presence of the relevant budget commitment for payment in the budget execution accounting;

2) availability of the budget programme passport approved in accordance with the established procedure;

{Clause 2, part 2 of Article 49 as amended by Law No. 2646-VIII of 06 December 2018}

3) the availability of appropriate budget allocations for budget managers.

Article 50. Repayment of loans to the budget

1. In the case of loans from the budget, borrowers have debts to the budget. From the moment of granting loans from the budget in the amount of funds received from the budget, the rights of the creditor and the right to demand from borrowers to return such loans to the budget pass to the state (Autonomous Republic of Crimea, territorial community) in full.

The limitation does not apply to claims for repayment of such debt.

2. Tax authorities are determined by the bodies for collection of overdue debts on loans from the budget from business entities to the state (Autonomous Republic of Crimea, territorial community).

{Part 2 of Article 50 as amended by Law No. 642-IX of 02 June 2020}

Article 51. Features of the implementation of certain budget expenditures

1. Heads of budgetary institutions maintain the number of employees, servicemen, privates and officers, police officers, members of the Judicial Protection Service and make actual expenditures on salaries (cash), including expenditures on bonuses and other incentives or rewards, material assistance, only within the budget allocations for wages (cash security), approved for budget institutions in the estimates.

{Part one of Article 529 as amended by Laws No. 2233-VIII of 07 December 2017, No. 2621-VIII of 22 November 2018, No. 293-IX of 14 November 2019}

2. Expenses for gratuitous or preferential material and household provision, to which certain categories of employees of budgetary institutions, servicemen, persons of rank and file, police officers, employees of the Judicial Protection Service are entitled according to the legislation of Ukraine (except for categories provided by clause "i", part one, Article 77 of the Fundamentals of Legislation of Ukraine on Health Care, part four, Article 29 of the Fundamentals of Legislation of Ukraine on Culture, paragraph one, part three, Article 57 of the Law of Ukraine" On Education "), as well as medical care and spa treatment and recreation for rehabilitation – family members of servicemen, privates and officers, police officers, members of the Judicial Protection Service, retired servicemen, privates and officers, police officers, employees of the Judicial Protection Service and members of their families, are carried out at the expense of budget allocations these budgetary institutions.

{Paragraph one, part 2 of Article 51 as amended by Law No. 2233-VIII of 07 December 2017}

Such costs include: provision of uniforms, belongings, uniforms; provision of free medical care; providing sanatorium treatment and recreation for recovery; provision of residential premises or payment of monetary compensation for sublease (rent) of residential premises; reduction of fees for the use of housing (rent), fuel, telephone and utility bills (water supply, gas, electricity and heat); free travel and luggage transportation; free installation of apartment security alarm and its use; free sending and receiving of letters by military servicemen.

{Part 2 of Article 529 as amended by Laws No. 2233-VIII of 07 December 2017, No. 2621-VIII of 22 November 2018}

3. Budget managers shall ensure full payment for electricity and heat, water supply, sewerage, natural gas, other energy, utilities and communication services consumed by budgetary institutions, and enter into agreements for each type of relevant services within budget allocations approved in the budget.

{Part 3 of Article 51 as revised by Law No. 2621-VIII of 22 November 2018; as amended by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

4. In the presence of overdue accounts payable on wages (cash), scholarships, as well as for consumed utilities, electricity and heat, natural gas and other energy, the managers of budget funds within the budget allocations for the general fund do not make budget commitments and do not make payments for other measures related to the functioning of budgetary institutions (except for protected budget expenditures, defined in Article 55 of this Code), until such debt is repaid.

{Part 4 of Article 51 as revised by Law No. 2621-VIII of 22 November 2018}

5. When providing benefits and making expenditures from the budget for their payment, family members of the beneficiary include wife (husband), their minor children (under 18 years of age); unmarried adult children recognised as persons with disabilities from a childhood of groups I and II or persons with disabilities of group I; a person living with and caring for a person with a disability as a result of the war of group I, provided that the person with a disability as a result of the war is not married; disabled parents; a person who is under the guardianship or custody of a citizen who is entitled to benefits and lives with him/her.

{Part 5 of Article 51 as amended by Law No. 2233-VIII of 07 December 2017}

6. Accession to international organisations and accession to international agreements, which conditions of membership provide for the payment of contributions or any other payments from the state budget, are based on the relevant amounts specified for this purpose in the law on the State Budget of Ukraine, and in the manner prescribed by the Law of Ukraine "On International Agreements of Ukraine".

7. Expenditures related to the operation of foreign diplomatic missions of Ukraine, including expenditures for the maintenance of their employees (except for military attachés), shall be made exclusively through the Ministry of Foreign Affairs of Ukraine.

Features of formation and use of state budget funds by foreign diplomatic missions of Ukraine for the implementation of measures to protect the rights and interests of citizens of Ukraine abroad shall be established by the Cabinet of Ministers of Ukraine.

{Part 7 of Article 51 has been supplemented with paragraph 2 under Law No. 4318-VI of 12 January 2012}

8. If the actual amount of own revenues from the special fund of the budget institution, taking into account the balances of budget funds at the beginning of the year is less than the planned indicators taken into account in the special fund of its budget, the manager of budget funds is obliged to make changes to the special budget fund. reduction of own revenues and expenditures taking into account the expected execution of the special budget fund in the relevant budget period. Managers of budget funds arrange budget commitments taking into account the changes made to the special budget fund.

{Part 8 of Article 51 as amended by Law No. 2646-VIII of 06 December 2018}

9. If the actual amounts of own revenues of budgetary institutions, taking into account the balances of the relevant budget funds at the beginning of the year exceed the relevant expenditures approved by the law on the State Budget of Ukraine (decision on the local budget), the manager of budget funds provides wages, payroll, scholarships, utilities and energy.

{Paragraph one, part nine of Article 51 as amended by Law No. 293-IX of 14 November 2019}

If there is no such debt, the manager of budget funds allocates 50 per cent of the funds for activities carried out at the expense of the relevant revenues, and 50 per cent of the funds – for activities necessary to perform basic functions, but not provided by the general budget fund under the budget programme.

In this case, the manager of budget funds redistributes the number of budget commitments to the general fund of the budget to spend on these commitments from the special fund of the budget.

10. In the case of the formation of state bodies in the current budget period, the provision of their activities in this period is carried out within the expenditures provided by state bodies, which are liquidated or reorganised in connection with the formation of such new state bodies.

In case of liquidation or reorganisation of state bodies in the current budget period, ensuring their activities in subsequent budget periods until the completion of liquidation or reorganisation procedures is carried out within the expenditures provided for new state bodies, which are determined by successors or transferred functions of liquidated or reorganised bodies.

{Paragraph 2, part nine of Article 51 as amended by Law No. 293-IX of 14 November 2019}

{Article 51 has been supplemented with part 10 under Law No. 4318-VI of 12 January 2012}

11. Accounts payable, which were formed at the end of the current budget period in local budgets on budget commitments made for capital transfers from the state budget to local budgets and funds of the state fund of regional development, shall be repaid primarily from the state budget in the following budget periods for the implementation of relevant programmes and activities.

{Article 51 has been supplemented with part 11 under Law No. 5428-VI of 16 October 2012}

Chapter 9. MAKING AMENDMENTS TO THE LAW ON THE STATE BUDGET OF UKRAINE

Article 52. Procedure for Amending the Law on the State Budget of Ukraine

1. Amendments to the law on the State Budget of Ukraine may be made in the case of:

1) deviation of the assessment for the main forecast macro indicators of economic and social development of Ukraine from the forecast taken into account during the approval of the State Budget of Ukraine for the relevant budget period;

2) over fulfilment of the general fund of the State Budget of Ukraine, taking into account in the schedule of the State Budget of Ukraine for the relevant period, by more than 15 per cent in accordance with part one, Article 53 of this Code;

{Paragraph 2, part 1 of Article 52 as amended by Law No. 1081-IX of 15 December 2020}

3) insufficient receipt by the end of the quarter of the revenues of the general fund of the State Budget of Ukraine, taking into account in the schedule of the State Budget of Ukraine for the relevant period, by more than 15 per cent in accordance with part two, Article 54 of this Code;

4) the need to increase the amount of the reserve fund of the state budget;

5) the need to transfer funds between the general and special funds of the state budget in accordance with part seven, Article 13 of this Code;

6) exceeding the expected amount of expenses for servicing and repayment of public debt, expenses related to the fulfilment of state guarantee obligations, and expenses for payments on state derivatives over the amount of funds specified by the law on the State Budget of Ukraine for this purpose, in accordance with paragraph 2, part sixth, Article 16; part seven, Article 17 and clause 35, Section VI of this Code;

7) the need to optimise the structure of state budget expenditures within the total expenditures and loans approved by the law on the State Budget of Ukraine to ensure effective implementation of the State Budget of Ukraine, except as provided in parts six to nine, Article 23 of this Code;

8) changes in circumstances in the process of execution of the State Budget of Ukraine requiring smaller budget allocations to the main managers of budget funds in accordance with part three, Article 23 of this Code;

9) enrolment of a new type of state budget revenue in the general or special fund established by law for the period prior to the relevant amendments to this Code in accordance with part four, Article 29 of this Code;

10) the need to reduce budget allocations for violations of budget legislation in accordance with clause 4, part one, Article 117 of this Code.

Amendments to the law on the State Budget of Ukraine may be made only by the laws on making amendments to the Law on the State Budget of Ukraine.

{Part 1 of Article 52 has been supplemented with paragraph 12 under Law No. 1789-VIII of 20 December 2016}

2. The Ministry of Finance of Ukraine conducts a monthly assessment of the compliance of state budget revenues with the indicators established by the State Budget of Ukraine and the state budget schedule for the relevant period. The Cabinet of Ministers of Ukraine conducts a quarterly assessment for the compliance of the main forecast macroeconomic indicators of Ukraine's economic and social development with the indicators taken into account during the approval of the State Budget of Ukraine for the relevant budget period.

3. A draft law on making amendments to the Law on the State Budget of Ukraine may be considered by the Verkhovna Rada of Ukraine only in the presence of an expert opinion of the Ministry of Finance of Ukraine (except for draft laws submitted by the Cabinet of Ministers of Ukraine drafted by the Ministry of Finance of Ukraine).

4. Draft law on making amendments to the Law on the State Budget of Ukraine, which provides for a change in the maximum amount of the state budget deficit, the maximum amount of public debt and state-guaranteed debt and the maximum amount of state guarantees, as well as in cases provided for in paragraphs 1-3 and 6 part one of this article, may be considered by the Verkhovna Rada of Ukraine only in the presence of an expert opinion of the Ministry of Finance of Ukraine (except for draft laws submitted by the Cabinet of Ministers of Ukraine, drafted by the Ministry of Finance of Ukraine) and a decision of the Verkhovna Rada Committee on Budget to support such a draft law.

5. Consideration of the draft law on making amendments to the Law on the State Budget of Ukraine in the Verkhovna Rada of Ukraine shall be carried out according to the procedure determined by the Rules of Procedure of the Verkhovna Rada of Ukraine, taking into account the requirements of this Article.

{Text of Article 52 as amended by Law No. 4731-VI of 17 May 2012; as revised by Law No. 914-VIII of 24 December 2015}

Article 53. Over fulfilment of revenues in the general fund of the State Budget of Ukraine

{Title of Article 53 as amended by Law No. 1081-IX of 15 December 2020}

1. The fact of over fulfilment of general budget revenues is recognised based on the official conclusions of the Accounting Chamber and the Ministry of Finance of Ukraine on the implementation of the State Budget of Ukraine following the results of three quarters in case of excess of indicators of receipts of the general fund of the state budget considered in the schedule of the state budget for the corresponding period, by more than 15 per cent. Such conclusions shall be submitted to the Verkhovna Rada of Ukraine by October 15 of the current year.

{Part one of Article 53 as amended by Law No. 2592-VI of 07 October 2010; as revised by Law No. 176-VIII of 10 February 2015; as amended by Law No. 1081-IX of 15 December 2020}

2. The Cabinet of Ministers of Ukraine is obliged to submit to the Verkhovna Rada of Ukraine the relevant draft law on making amendments to the Law on the State Budget of Ukraine within two weeks from the date of announcement of the said official conclusions.

{Part 2 of Article 53 as amended by Law No. 288-VIII of 07 April 2015}

Article 54. Reduction of expenditures and crediting of the general fund of the State Budget of Ukraine

1. If the results of the monthly report on the implementation of the general fund of the State Budget of Ukraine show that the received state budget revenues are insufficient to implement budget allocations in accordance with budget allocations taking into account the deficit limit (surplus) approved by the law on the State Budget of Ukraine, to make changes to the schedule of the State Budget of Ukraine for the general fund in order to ensure the balance of revenues and expenditures of the state budget in compliance with the maximum annual deficit (surplus) of the state budget.

2. {Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the rules do not apply, part 2 of Article 54 – see Paragraph 2, Section II of the Law No. 553-IX of 13 April 2020} If there is a shortfall of the general fund of the State Budget of Ukraine by more than 15 per cent of the amount provided by the state budget for the official period according to the results of the quarterly report on the execution of the State Budget of Ukraine, the Ministry of Finance of Ukraine prepares proposals for amendments to the State Budget of Ukraine. The Cabinet of Ministers of Ukraine, having considered these proposals, submits to the Verkhovna Rada of Ukraine a draft law on making amendments to the Law on the State Budget of Ukraine developed on their basis no later than two weeks from the date of submission of proposals by the Ministry of Finance of Ukraine.

Article 55. Protected budget expenditures

1. {Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the rules do not apply, part 1 of Article 55 – see Paragraph 2, Section II of the Law No. 553-IX of 13 April 2020} Protected budget expenditures are expenditures of the general fund of the budget, which amount may not change when reducing the approved budget allocations.

2. Protected budget expenditures are determine the expenditures of the general fund for:

{Paragraph one, part 2 of Article 55 as amended by Law No. 79-VIII of 28 December 2014}

remuneration of employees working at budgetary institutions;

payroll;

purchase of medicines and dressings;

food supply;

payment for utilities and energy;

public (local) debt service;

{Paragraph 7, part 2 of Article 55 as revised by LawNo. 79-VIII of 28 December 2014}

social security;

{Paragraph 8, part 2 of Article 55 as revised by Law No. 293-IX of 14 November 2019}

current transfers to local budgets;

training of personnel in institutions of professional higher and higher education;

{Paragraph 10, part 2 of Article 55 as revised by Law No. 293-IX of 14 November 2019}

providing persons with disabilities with technical and other means of rehabilitation, medical devices for individual use;

scientific and scientific-technical activities;

{Paragraph 12, part 2 of Article 55 as revised by Law No. 293-IX of 14 November 2019}

works and measures carried out to implement the National programme for the decommissioning of the Chernobyl NPP and the transformation of the Shelter into an environmentally safe system, and work to strengthen the barrier functions of the exclusion zone;

{Part 2 of Article 55 has been supplemented with paragraph 13 under Law No. 2856-VI of 23 December 2010}

compensation of interest paid to banks and/or other financial institutions on loans obtained by citizens for construction (reconstruction) or purchase of housing;

{Part 2 of Article 55 has been supplemented with paragraph under Law No. 5059-VI of 05 July 2012}

measures related to the state's defence capabilities, carried out at the expense of the reserve fund of the state budget;

{Part 2 of Article 55 has been supplemented with paragraph under Law No. 79-VIII of 28 December 2014}

carrying out intelligence activities;

{Part 2 of Article 55 has been supplemented with paragraph under Law No. 79-VIII of 28 December 2014}

payment for services for the protection of state (municipal) cultural institutions;

{Part 2 of Article 55 has been supplemented with paragraph under Law No. 212-VIII of 02 March 2015}

payment for energy service;

{Part 2 of Article 55 has been supplemented with paragraph 18 under Law No. 328-VIII of 09 April 2015}

payments on government derivatives;

{Part 2 of Article 55 has been supplemented with paragraph 19 under Law No. 700-VIII of 17 September 2015}

the programme of state guarantees related to medical care for the population;

{Part 2 of Article 55 has been supplemented with paragraph 20 under Law No. 2621-VIII of 22 November 2018}

medium-term health commitments.

{Part 2 of Article 55 has been supplemented with paragraph 21 under Law No. 1081-IX of 15 December 2020}

Chapter 10. ACCOUNTING AND REPORTING ON THE EXECUTION OF THE STATE BUDGET OF UKRAINE

Article 56. Accounting for the execution of the State Budget of Ukraine

1. The Ministry of Finance of Ukraine shall regulate the issues of accounting methodology and reporting on budget execution.

{Part one of Article 56 as amended by Law No. 3614-VI of 07 July 2011}

2. Accounting of all operations related to the execution of the State Budget of Ukraine shall be carried out by the bodies of the Treasury of Ukraine in accordance with the procedure established by the Ministry of Finance of Ukraine. This accounting shall reflect all assets and liabilities of the state.

{Paragraph one, part 2 of Article 56 as amended by Law No. 3614-VI of 07 July 2011}

Budgetary institutions conduct accounting in accordance with national regulations (standards) of accounting in the public sector and other regulations on accounting in the manner prescribed by the Ministry of Finance of Ukraine.

{Paragraphs 2 and 3, part 2 of Article 56 has been replaced with one paragraph under Law No. 3614-VI of 07 July 2011; as amended by Law No. 2646-VIII of 06 December 2018}

3. Tasks and functional responsibilities of accounting services, powers of the head of the accounting service in budgetary institutions – the chief accountant are determined by the Cabinet of Ministers of Ukraine.

Appointment and dismissal of the chief accountant of a budgetary institution are carried out in accordance with labour legislation.

{Part 3 of Article 56 as revised by Law No. 79-VIII of 28 December 2014}

4. All budget revenues and budget expenditures shall be accounted for in gross indicators, regardless of whether or not the budget allocations provide for the offsetting of these indicators.

5. All budget revenues and budget expenditures shall be reflected in the accounts chronologically in accordance with the procedure established by law. All accounting records shall be documented.

6. Reflection of operations related to the receipt and use of own revenues of state and municipal institutions of professional higher and higher education, research institutions and cultural institutions received as payment for services provided by them in accordance with the main activity, charitable contributions and grants, in the accounting is carried out in the prescribed manner.

{Title of Article 56 has been supplemented with part 6 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

Article 57. Procedure for closing accounts after the end of the budget period

1. The Treasury of Ukraine shall close all accounts opened in the current budget period for budget execution no later than December 31 of the current budget period or the last day of another budget period. The procedure for closing the accounts for the current budget period and opening the accounts for the next budget period shall be determined by the Ministry of Finance of Ukraine. In exceptional circumstances, the Minister of Finance of Ukraine may set another deadline for closing the accounts, which shall occur no later than five working days after the end of the budget period.

{Paragraph one, part 1 of Article 57 as amended by Law No. 3614-VI of 07 July 2011}

Balances of state budget funds at the end of the budget period of Ukrainian institutions operating abroad, on accounts opened in banking institutions of their countries of residence, as well as balances of own revenues of state and municipal institutions of professional higher and higher education, research institutions and cultural institutions as payment for services provided by them in accordance with the main activity, charitable contributions and grants, on current accounts in public sector banks are kept in such accounts for expenditures in the next budget period in accordance with estimates.

{Paragraph 2, part 1 of Article 57 as amended by Laws No. 79-VIII of 28 December 2014, No. 293-IX of 14 November 2019}

2. At the end of the budget period, the Treasury of Ukraine shall keep the balances on the accounts of the special fund of the state budget and on subventions from the special fund of the state budget on the accounts of the special fund of local budgets to cover the relevant expenditures in the next budget period. In the absence of appropriate budget allocations for the next budget period, the balances of the special fund are transferred to the general fund of the state budget.

{Paragraph one, part 2 of Article 57 as amended by Law No. 3614-VI of 07 July 2011}

The key spending units are obliged to fulfil budget commitments under the budget programmes of the special fund of the state budget, not provided by the draft law on the State Budget of Ukraine for the next budget period submitted to the Verkhovna Rada of Ukraine by the end of the current budget period within the limits and at the expense of the corresponding actual receipts to the special fund of the budget, not allowing existence on such commitments of accounts payable for the beginning of the following budget period.

3. All revenues and expenditures shall be recorded in the budget period in which they are incurred.

Article 58. Reporting on the implementation of the State Budget of Ukraine

1. Reporting on the implementation of the State Budget of Ukraine (estimates of budgetary institutions) includes financial and budgetary reporting.

Financial statements are prepared in accordance with national regulations (standards) of accounting in the public sector and other regulations of the Ministry of Finance of Ukraine.

{Paragraph 2, part 1 of Article 58 as revised by Law No. 3614-VI of 07 July 2011; as amended by Laws No. 79-VIII of 28 December 2014, No. 2646-VIII of 06 December 2018}

{Paragraph 3, part 1 of Article 58 has been deleted under Law No. 3614-VI of 07 July 2011}

Budget reporting reflects the state of budget execution, contains information in terms of budget classification.

Forms of financial and budgetary reporting and the procedure for filling them out shall be established by the Ministry of Finance of Ukraine.

{Paragraph 5, part 1 of Article 58 as revised by Law No. 3614-VI of 07 July 2011}

2. Consolidation, compilation and submission of reports on the implementation of the State Budget of Ukraine shall be carried out by the Treasury of Ukraine.

The Treasury of Ukraine ensures the accuracy of information on the implementation of the State Budget of Ukraine.

3. The chief accountant of the budgetary institution shall ensure the preparation and submission of financial and budgetary reports in accordance with the established requirements.

4. Reporting on the execution of the State Budget of Ukraine is operational, monthly, quarterly and annual.

Article 59. Monthly report on implementation of the State Budget

1. The monthly report on the implementation of the State Budget of Ukraine shall be submitted by the Treasury of Ukraine to the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, the Accounting Chamber and the Ministry of Finance of Ukraine no later than the 15th day of the month following the reporting month.

2. Consolidated indicators of reports on budget implementation, information on execution of protected expenditures of the State Budget of Ukraine, information on the use of funds from the reserve fund of the state budget, information on the use of state fund of regional development, reports on receipt and use of state road fund, State Fund for Radioactive Waste Management, the State Fund for Water Development (such reports shall include planned and actual indicators of relevant revenues and expenditures of the state budget in terms of budget classification and balances at the beginning and end of the reporting period), information on public debt management operations, information on provided state guarantees and the report on budget debt are submitted by the Treasury of Ukraine to the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, the Accounting Chamber and the Ministry of Finance of Ukraine no later than the 25th day of the month following the reporting month.

{Part 2 of Article 59as amended by Laws No. 3614-VI of 07 July 2011, No. 4318-VI of 12 January 2012, No. 1763-VIII of 17 November 2016, No. 2125-VIII of 11 July 2017, No. 2233-VIII of 07 December 2017, No. 293-IX of 14 November 2019}

3. The bodies that control budget levy revenues collection shall submit such monthly reports to the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, the Accounting Chamber and the Ministry of Finance of Ukraine no later than the 15th day of the month following the reporting month. sources of income and forms of ownership) separately for the consolidated budget of Ukraine, the state budget and local budgets:

1) on the actual receipts of taxes and fees and other budget revenues;

2) on the tax debt;

3) on the amounts of taxpayers overpaid monetary obligations and the amount of payments that are paid and will be accrued in subsequent reporting periods;

4) on budgetary reimbursement of value added tax, including information on arrears of budget on reimbursement of value added tax.

{Part 3 of Article 59as amended by Laws No. 2592-VI of 07 October 2010, No. 2856-VI of 23 December 2010; as revised by Laws No. 242-VII of 16 May 2013, No. 176-VIII of 10 February 2015}

Article 60. Quarterly report on implementation of the State Budget

1. The quarterly report on the implementation of the State Budget shall be submitted by the Treasury of Ukraine to the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, the Accounting Chamber and the Ministry of Finance of Ukraine no later than 35 days after the end of the reporting quarter.

2. The quarterly report on the implementation of the State Budget includes:

1) balance sheet;

{Clause 1, part 2 of Article 60 as revised by Law No. 293-IX of 14 November 2019}

2) report on financial results;

{Clause 2, part 2 of Article 60 as revised by Law No. 293-IX of 14 November 2019}

{Clause 2, part 2 of Article 60 shall enter into force on 1 January 2018 – see cl. 1, Sec. VI "Final and transitional provisions" of this Code}

{Clause 3, part 2 of Article 60 has been deleted under Law No. 5428-VI of 16 October 2012}

4) report on the implementation of the State Budget of Ukraine (including reports on the implementation of indicators in the form of annexes to the law on the State Budget of Ukraine);

5) a report on the state of public debt and state-guaranteed debt;

{Clause 5, part 2 of Article 60 as amended by Law No. 3614-VI of 07 July 2011}

6) summary indicators of reports on budget implementation;

7) a report on overdue debts of business entities to the state on loans (borrowings) involved under state guarantees;

{Clause 7, part 2 of Article 60 as revised by Law No. 3614-VI of 07 July 2011}

7-1) report on payments for the fulfilment of guarantee obligations by the state;

{Clause of part 2 of Article 60 as revised by Law No. 3614-VI of 07 July 2011}

8) information on public debt management operations;

{Clause 8, part 2 of Article 60 as amended by Law No. 3614-VI of 07 July 2011}

9) information on state guarantees provided;

9-1) information on the state of local debts and debts guaranteed by the Autonomous Republic of Crimea, regional councils and territorial communities, respectively, and on local guarantees provided;

{Part 2 of Article 60 has been supplemented with paragraph 9-1 under Law No. 3614-VI of 07 July 2011; as amended by Law No. 2621-VIII of 22 November 2018}

10) explanation of the state of implementation of indicators of the State Budget of Ukraine and local budgets for the reporting period.

3. The bodies that control budget levy revenues collection shall submit to the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, the Accounting Chamber and the Ministry of Finance of Ukraine such quarterly reports (in the sectoral and territorial context and in the context of sources of income and forms of ownership) separately for the consolidated budget of Ukraine, the state budget and local budgets:

1) on the amounts of written-off tax debt – not later than 35 days after the end of the quarter;

2) on deferred and deferred amounts of tax debt and monetary obligations of taxpayers – not later than 35 days after the end of the quarter;

3) on the amounts of provided tax benefits, including losses of budget revenues from their provision – not later than 50 days after the end of the quarter and not later than 70 days after the end of the year.

{Part 3 of Article 60as amended by Laws No. 2592-VI of 07 October 2010, No. 2856-VI of 23 December 2010; as revised by Laws No. 242-VII of 16 May 2013, No. 176-VIII of 10 February 2015}

4. The Ministry of Finance of Ukraine submits information on the implementation of text articles of the law on the State Budget of Ukraine to the Verkhovna Rada Committee on Budget within two weeks after receiving the quarterly report on the implementation of the State Budget of Ukraine in the current budget period.

Article 61. Annual report on the implementation of the law on the State Budget of Ukraine

1. The annual report on the implementation of the law on the State Budget of Ukraine shall be submitted by the Cabinet of Ministers of Ukraine to the Verkhovna Rada of Ukraine, the President of Ukraine and the Accounting Chamber no later than 1 April of the year following the reporting year.

{Part one of Article 61 as amended by Law No. 3614-VI of 07 July 2011}

2. The annual report on the implementation of the law on the State Budget of Ukraine includes:

1) balance sheet;

{Clause 1, part 2 of Article 61 as revised by Law No. 293-IX of 14 November 2019}

2) report on the implementation of the State Budget of Ukraine (including reports on the implementation of indicators in the form of annexes to the law on the State Budget of Ukraine);

3) report on financial results;

{Clause 3, part 2 of Article 61 as revised by Law No. 293-IX of 14 November 2019}

4) cash flow report;

5) statement of equity;

{Clause 5, part 2 of Article 61 shall enter into force on 1 January 2018 – see cl. 1, Sec. VI "Final and transitional provisions" of this Code}

6) information on the execution of protected expenditures of the State Budget of Ukraine;

7) report on budget debt;

8) report on the use of funds from the reserve fund of the state budget;

8-1) report on receipt and use of funds of the state fund for regional development;

{Part 2 of Article 61 has been supplemented with paragraph 8-1 under Law No. 4318-VI of 12 January 2012; as amended by Law No. 293-IX of 14 November 2019}

8-2) report on the receipt and use of funds of the state road fund;

{Part 2 of Article 61 has been supplemented with paragraph 8-2 under Law No. 1763-VIII of 17 November 2016; as amended by Law No. 293-IX of 14 November 2019}

8-3) report on receipt and use of funds of the State Fund for Radioactive Waste Management;

{Part 2 of Article 61 has been supplemented with paragraph 8-3 under Law No. 2125-VIII of 11 July 2017; as amended by Law No. 293-IX of 14 November 2019}

8-4) report on receipt and use of funds of the state fund of water management development;

{Part 2 of Article 61 has been supplemented with paragraph 8-4 under Law No. 2233-VIII of 07 December 2017; as amended by Law No. 293-IX of 14 November 2019}

9) a report on the state of public debt and state-guaranteed debt;

{Paragraph 9, part 2 if Article 61 as amended by Law No. 3614-VI of 07 July 2011}

10) report on overdue debts of business entities to the state on loans (borrowings) involved under state guarantees;

{Paragraph 10, part 2 of Article 61 as revised by Law No. 3614-VI of 07 July 2011}

10-1) report on payments for fulfilment of guarantee obligations by the state;

{Paragraph, part 2 of Article 61 as revised by Law No. 3614-VI of 07 July 2011}

11) summary indicators of reports on budget implementation;

9-1) information on the implementation of local budgets, including information on the state of local debts and debts guaranteed by the Autonomous Republic of Crimea, regional councils and territorial communities, respectively, and on local guarantees provided;

{Paragraph 12, part 2 of Article 629 as amended by Laws No. 3614-VI of 07 July 2011, No. 2621-VIII of 22 November 2018}

13) information on public debt management operations;

{Paragraph 13, part 2 of Article 61 as amended by Law No. 3614-VI of 07 July 2011}

14) information on state guarantees provided;

15) information on the achievement by the main managers of state budget funds of the planned goals, objectives and performance indicators of budget programmes, as well as the objectives of state policy in the relevant field, the formation and/or which implementation provides the main manager of state budget funds budget period;

{Paragraph 15, part 2 of Article 61 as revised by Law No. 2646-VIII of 06 December 2018}

15-1) information on the implementation of public investment projects indicating the total cost of each project, including information on the status of the project indicating the degree of its readiness and the amount of state budget expenditures required to complete the project, budget programmes, as well as the amount of such expenditures for the reporting budget period programmes. The preparation of such materials is carried out by the central executive body, which ensures the formation of state policy in the field of economic and social development;

{Part 2 of Article 61 has been supplemented with paragraph 15-1 under Law No. 2646-VIII of 06 December 2018}

15-2) information on the implementation of investment projects implemented with state loans (loans) from foreign countries, foreign financial institutions and international financial organisations, indicating the total cost of each project, including information on the status of the project indicating the degree of its readiness, the volume of relevant credits (loans) and state budget expenditures required for project completion under budget programmes, as well as the volume of such credits (loans) and expenditures for the reporting budget period under budget programmes;

{Part 2 of Article 61 has been supplemented with paragraph 15-2 under Law No. 2646-VIII of 06 December 2018}

16) information on the implementation of text articles of the law on the State Budget of Ukraine;

16-1) an explanatory note to the report on the implementation of the law on the State Budget of Ukraine, which includes an explanation of deviations from the planned indicators for the main types of revenues, financing, expenditures and lending to the state budget, information on the state debt and state-guaranteed debt;

{Part 2 of Article 61 has been supplemented with paragraph 16-1 under Law No. 293-IX of 14 November 2019}

17) other information deemed necessary by the Cabinet of Ministers of Ukraine to explain the report.

Article 62. Consideration of the Annual Report on the Implementation of the Law on the State Budget of Ukraine

1. Within two weeks from the date of official submission by the Cabinet of Ministers of Ukraine of the annual report on the implementation of the Law on the State Budget of Ukraine, the Accounting Chamber prepares and submits to the Verkhovna Rada of Ukraine conclusions on the implementation of the Law on the State Budget of Ukraine. elimination of violations identified in the reporting budget period and improvement of the budget process in general.

{Part one of Article 62 as revised by Laws No. 2592-VI of 07 October 2010, No. 176-VIII of 10 February 2015}

2. Consideration in the Verkhovna Rada of Ukraine of the annual report on the implementation of the law on the State Budget of Ukraine shall be carried out according to a special procedure determined by the Rules of Procedure of the Verkhovna Rada of Ukraine.

SECTION III.
LOCAL BUDGETS

Chapter 11. LOCAL BUDGET REVENUES AND EXPENDITURES

Article 63. Structure of local budgets

1. The local budget contains revenues and expenditures for the exercise of powers of the authorities of the Autonomous Republic of Crimea, local state administrations and local governments in accordance with this Code. These revenues and expenditures form a single balance of the relevant budget.

Article 64. Composition of revenues of the general fund of budgets of rural, settlement, city territorial communities

{Title of Article 64 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 176-VIII of 10 February 2015; as revised by Laws No. 907-IX of 17 September 2020, No. 1081-IX of 15 December 2020}

1. Revenues of the general fund of budgets of rural, settlement, city territorial communities include:

{Paragraph one, part 1 of Article 64 as revised by Laws No. 79-VIII of 28 December 2014, No. 907-IX of 17 September 2020, No. 1081-IX of 15 December 2020}

1) 60 per cent of personal income tax (except for personal income tax specified in clause 1-1, part two, Article 29 of this Code), which is paid (transferred) in accordance with the Tax Code of Ukraine in the relevant territory (except Kyiv and Sevastopol);

{Paragraph 1, part 1 of Article 64 as amended by Law No. 2856-VI of 23 December 2010; as revised by LawNo. 79-VIII of 28 December 2014}

1-1) 40 per cent of personal income tax (except for personal income tax specified in clause 1-1, part two, Article 29 of this Code), which is paid (transferred) in accordance with the Tax Code of Ukraine in the city of Kyiv and credited to the budget of Kyiv; 100 per cent of personal income tax (except for personal income tax specified in clause 1-1 of part two of Article 29 of this Code), which is paid (transferred) in accordance with the Tax Code of Ukraine in the city of Sevastopol and credited to the budget of Sevastopol;

{Part 1, Article 64 has been supplemented with paragraph 1-1 under Law No. 79-VIII of 28 December 2014; as revised by LawNo. 176-VIII of 10 February 2015}

2) 37 per cent of the rent for the special use of forest resources in the part of wood harvested in the order of felling of the main use;

{Paragraph 2, part 1 of Article 64 as amended by Law No. 2856-VI of 23 December 2010; as revised by Laws No. 79-VIII of 28 December 2014, No. 2621-VIII of 22 November 2018}

3) 45 per cent of the rent for the special use of water (except for the rent for the special use of water bodies of local significance), which is credited to the city budgets of Kyiv and Sevastopol by water users at the place of its intake;

{Paragraph 3, part 1 of Article 64 as amended by Law No. 2856-VI of 23 December 2010; as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 2233-VIII of 07 December 2017}

4) 25 per cent of the rent for the use of subsoil for the extraction of minerals of national importance (except for the rent for the use of subsoil for the extraction of oil, natural gas, gas condensate and amber), which is credited to the city budgets of Kyiv and Sevastopol;

{Paragraph 4, part 1 of Article 64 as revised by Law No. 2856-VI of 23 December 2010; as amended by Law No. 5083-VI of 05 July 2012; as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

{Paragraph 4-1, part 1 of Article 64 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

4-2) 3 per cent of the rent for the use of subsoil for the extraction of oil, natural gas and gas condensate (except for the rent for the use of subsoil within the continental shelf and/or exclusive (marine) economic zone of Ukraine), credited to the location (place of extraction) of relevant natural resources ;

{Part 1, Article 64 has been supplemented with paragraph 4-2 under Law No. 1793-VIII of 20 December 2016; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

4-3) 5 per cent of the rent for the use of subsoil for the extraction of minerals of national importance (except for the rent for the use of subsoil for the extraction of oil, natural gas, gas condensate and amber), which is credited to the location (place of extraction) of relevant natural resources;

{Part 1, Article 64 has been supplemented with paragraph 4-3 under Law No. 2621-VIII of 22 November 2018; as amended by Law No. 293-IX of 14 November 2019; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

4-4) 30 per cent of the rent for the use of subsoil for amber mining, which is credited to local budgets at the location (place of extraction) of amber;

{Part 1, Article 64 has been supplemented with paragraph 4-4 under Law No. 293-IX of 14 November 2019}

5) payment for the use of other natural resources, which is credited to the city budgets of Kyiv and Sevastopol;

{Paragraph 6, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 7, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 8, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 9, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 10, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 11, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 12, part 1 of Article 64 has been deleted under Law No. 163-VII of 04 April 2013}

{Paragraph 13, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 14, part 1 of Article 64 has been deleted under Law No. 5428-VI of 16 October 2012}

15) state duty, which is credited to the budgets of local self-government at the place of action and issuance of documents;

{Paragraph 15, part 1 of Article 64 as revised by Laws No. 79-VIII of 28 December 2014, No. 176-VIII of 10 February 2015}

16) excise tax on the sale of excisable goods by retail trade entities;

{Part 1, Article 64 has been supplemented with paragraph 16 under Law No. 79-VIII of 28 December 2014; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

16-1) 13.44 per cent of the excise tax on fuel produced in Ukraine in the manner prescribed by the Cabinet of Ministers of Ukraine, are credited to the general fund of the relevant local government budgets automatically:

in the first half of the current budget period – in proportion to the volume of fuel sold by retail trade entities in the relevant territory for the second half of the previous budget period in the total amount of such sold fuel in Ukraine as a whole for the second half of the budget period;

in the second half of the current budget period – in proportion to the volume of fuel sold by retail trade entities in the relevant territory for the first half of the current budget period in the total amount of such sold fuel in Ukraine as a whole for the first half of the budget period;

{Part 1, Article 64 has been supplemented with paragraph 16-1 under Law No. 1081-IX of 15 December 2020}

16-2) 13.44 per cent of the excise tax on fuel imported into the customs territory of Ukraine in the manner prescribed by the Cabinet of Ministers of Ukraine, are credited to the general fund of the relevant local government budgets automatically:

in the first half of the current budget period – in proportion to the volume of fuel sold by retail trade entities in the relevant territory for the second half of the previous budget period in the total amount of such sold fuel in Ukraine as a whole for the second half of the budget period;

in the second half of the current budget period – in proportion to the volume of fuel sold by retail trade entities in the relevant territory for the first half of the current budget period in the total amount of such sold fuel in Ukraine as a whole for the first half of the budget period;

{Part 1, Article 64 has been supplemented with paragraph 16-2 under Law No. 1081-IX of 15 December 2020}

17) 10 per cent of corporate income tax (except for corporate income tax and the tax specified in clause 18 of this part of the Article, clause 1, part one, Article 64-1 and clause 1-2, part one, Article 66 of this Code), which is credited to the budget of Kyiv;

{Part 1, Article 64 has been supplemented with paragraph 17 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

18) income tax on enterprises and financial institutions of communal property.

The income tax of enterprises and financial institutions of municipal property, which founders are village, settlement, city councils, is credited to the relevant budgets;

{Part 1, Article 64 has been supplemented with paragraph 18 under Law No. 79-VIII of 28 December 2014; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

19) local taxes and fees paid (transferred) in accordance with the Tax Code of Ukraine;

{Part 1, Article 64 has been supplemented with paragraph 19 under Law No. 79-VIII of 28 December 2014; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Clause 20, part 1 of Article 64 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Clause 20-1, part 1 of Article 64 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Clause 20-2, part 1 of Article 64 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

21) payment for licenses for certain types of economic activity and certificates issued by the executive bodies of the relevant local councils, which is credited to the relevant budgets of local self-government;

{Part 1, Article 64 has been supplemented with paragraph 21 under Law No. 79-VIII of 28 December 2014; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

22) fee for licenses and certificates (except for the fee for certification specified in clause 25-1, part 2, Article 29 of this Code), which is credited to the city budgets of Kyiv and Sevastopol by licensees at the place of activity;

{Part 1, Article 64 has been supplemented with paragraph 22 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

23) license fees for the production of ethyl alcohol, cognac and fruit and grain distillate, rectified grape ethyl alcohol, rectified fruit ethyl alcohol, grape alcohol distillate, raw fruit alcohol, bioethanol, alcoholic beverages, tobacco products, tobacco products cigarettes, which are credited to the city budgets of the cities of Kyiv and Sevastopol by licensees at the place of activity;

{Part 1, Article 64 has been supplemented with paragraph 23 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

24) fee for licenses for the right of wholesale trade in ethyl alcohol, rectified grape ethyl alcohol, rectified fruit ethyl alcohol, which is credited to the city budgets of Kyiv and Sevastopol by licensees at the place of activity;

{Part 1, Article 64 has been supplemented with paragraph 24 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

{Clause 25, part 1 of Article 64 has been deleted under Law No. 293-IX of 14 November 2019}

26) fee for state registration (except for the administrative fee for state registration of legal entities, natural persons – entrepreneurs and public formations), which is credited to the city budgets of Kyiv and Sevastopol;

{Part 1, Article 64 has been supplemented with paragraph 26 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 836-VIII of 26 November 2015}

27) fee for licenses for the right of wholesale trade in alcoholic beverages, tobacco products and liquids used in electronic cigarettes, which is credited to the city budgets of the cities of Kyiv and Sevastopol by licensees at the place of activity;

{Part 1, Article 64 has been supplemented with paragraph 27 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

28) fee for licenses for the right of retail trade in alcoholic beverages, tobacco products and liquids used in electronic cigarettes, which is credited to the city budgets of Kyiv and Sevastopol by licensees at the place of activity;

{Part 1, Article 64 has been supplemented with paragraph 28 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

28-1) payment for licenses for fuel production, for the right to wholesale fuel, for the right to retail fuel, for the right to store fuel, which is credited to the city budgets of Kyiv and Sevastopol by licensees at the place of activity;

{Part 1, Article 64 has been supplemented with paragraph 28-1 under Law No. 293-IX of 14 November 2019}

29) income from rent for the use of the property complex and other property in municipal ownership, which founders of are village, settlement, city councils;

{Part 1, Article 64 has been supplemented with paragraph 29 under Law No. 79-VIII of 28 December 2014; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

30) rent for the use of subsoil for the extraction of minerals of local importance; rent for the use of subsoil for purposes not related to the extraction of minerals; rent for special use of water of water bodies of local significance; rent for special use of forest resources (except for rent for special use of forest resources in the part of wood harvested in the order of felling of the main use). Such payments are credited to the budgets of local governments at the location (location) of the relevant natural resources, and at the place of tax registration of the payer of rent for water bodies;

{Part 1, Article 64 has been supplemented with paragraph 30 under Law No. 79-VIII of 28 December 2014}

31) payment for placement of temporarily free funds of relevant local government budgets (except for funds received by institutions of professional (vocational), professional higher and higher education from placement on deposits of temporarily free budget funds received for paid services, if such institutions are provided by law relevant right);

{Part 1, Article 64 has been supplemented with paragraph 31 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 176-VIII of 10 February 2015, No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

32) rent for water bodies (parts thereof) provided for use on lease by Kyiv and Sevastopol city state administrations, local councils, which is credited to the relevant budgets of local self-government;

{Part 1, Article 64 has been supplemented with paragraph 32 under Law No. 79-VIII of 28 December 2014; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

33) funds from the sale of ownerless property (including that refused by the owner or recipient), finds, inherited property (in the absence of heirs by will and by law, their removal from the right to inherit, their non-acceptance of inheritance, as well as refusal from its acceptance), property received by the territorial community by inheritance or gift, as well as currency values and funds, which owners are unknown;

{Part 1, Article 64 has been supplemented with paragraph 33 under Law No. 79-VIII of 28 December 2014}

34) concession payments for communal property objects, the founder of which are village, settlement, city councils (except for concession payments specified in clause 3, part one, Article 69-1 of this Code);

{Part 1, Article 64 has been supplemented with paragraph 34 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 176-VIII of 10 February 2015; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

35) part of the net profit (income) of communal unitary enterprises and their associations, which is withdrawn to the budget, in the manner determined by the relevant local councils;

{Part 1, Article 64 has been supplemented with paragraph 35 under Law No. 79-VIII of 28 December 2014}

36) payment for the provision of other administrative services, which is paid at the place of services provision;

{Part 1, Article 64 has been supplemented with paragraph 36 under Law No. 79-VIII of 28 December 2014}

36-1) administrative fee for state registration of real rights to immovable property and their encumbrances, carried out by the executive bodies of village, settlement, city councils, district in the cities of Kyiv and Sevastopol state administrations, which is credited to local government budgets at the place of service;

{Part 1, Article 64 has been supplemented with paragraph 36-1 under Law No. 836-VIII of 26 November 2015; as amended by Laws No. 1509-VIII of 08 September 2016, No. 2621-VIII of 22 November 2018; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

36-2) administrative fee for state registration of legal entities, individuals – entrepreneurs and public formations, carried out by the executive bodies of village, settlement, city councils, district in the cities of Kyiv and Sevastopol state administrations, which is credited to local government budgets at the place of service;

{Part 1, Article 64 has been supplemented with paragraph 36-2 under Law No. 836-VIII of 26 November 2015; as amended by Laws No. 1509-VIII of 08 September 2016, No. 2621-VIII of 22 November 2018; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

36-3) fee for reduction of terms of services rendering in the field of state registration of real rights to immovable property and their encumbrances and state registration of legal entities, natural persons – entrepreneurs and public formations, as well as fee for provision of other paid services related to such state registration carried out by executive bodies of village, settlement, city councils, district state administrations in the cities of Kyiv and Sevastopol, which is credited to the budgets of local governments at the place of output of services;

{Part 1, Article 64 has been supplemented with paragraph 36-3 under Law No. 836-VIII of 26 November 2015; as amended by Laws No. 1509-VIII of 08 September 2016, No. 2621-VIII of 22 November 2018; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

37) penalties for violation of patent law;

{Part 1, Article 64 has been supplemented with paragraph 37 under Law No. 79-VIII of 28 December 2014}

37-1) administrative fines and penalties for violations of legislation in the field of production and circulation of alcoholic beverages and tobacco products, credited to the place of violation;

{Part 1, Article 64 has been supplemented with paragraph 37-1 under Law No. 71-VIII of 28 December 2014; as amended by Law No. 176-VIII of 10 February 2015}

38) administrative fines and other penalties imposed by local executive bodies and executive bodies of local councils or by administrative commissions formed by them in accordance with the established procedure;

{Part 1, Article 64 has been supplemented with paragraph 38 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 2621-VIII of 22 November 2018}

39) penalties due to non-fulfilment of agreements concluded by the budget manager with business entities for the purchase of goods, works and services at the expense of the relevant local government budgets;

{Part 1, Article 64 has been supplemented with paragraph 39 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 176-VIII of 10 February 2015, No. 1081-IX of 15 December 2020}

40) funds received from the participants of the procurement procedure/simplified procurement as security for their tender offer/proposal of the simplified procurement participant, which are not refundable to such participants, in terms of procurement at the expense of the relevant local government budgets;

{Part 1, Article 64 has been supplemented with paragraph 40 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1789-VIII of 20 December 2016; as revised by Laws No. 907-IX of 17 September 2020, No. 1081-IX of 15 December 2020}

41) funds received from the winner of the procurement/simplified procurement procedure during the conclusion of the procurement contract as security for the performance of such contract, which are not refundable to the bidder, in terms of procurement at the expense of relevant local government budgets;

{Part 1, Article 64 has been supplemented with paragraph 41 under Law No. 79-VIII of 28 December 2014; as revised by Laws No. 907-IX of 17 September 2020, No. 1081-IX of 15 December 2020}

42) 80 per cent of funds received by enterprises, institutions and organisations maintained at the expense of local government budgets for gold, platinum, platinum group metals, precious stones, and 50 per cent of funds received by these enterprises, institutions and organisations for silver handed over in the form of scrap and waste;

{Part 1, Article 64 has been supplemented with paragraph 42 under Law No. 79-VIII of 28 December 2014; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Clause 43, part 1 of Article 64 has been deleted under Law No. 918-VIII of 24 December 2015}

43-1) {Clause 43-1, part 1 of Article 64 has been suspended for the year 2021 under Law No. 1082-IX of 15 December 2020} part of the fee for the issuance of a license to conduct business activities for the issuance and conduct of lotteries, established by the Cabinet of Ministers of Ukraine, which is paid by licensees to local government budgets at the location of the public, clause distribution of state lotteries;

{Part 1, Article 64 has been supplemented with paragraph 43-1 under Law No. 2233-VIII of 07 December 2017}

44) other revenues subject to crediting to local government budgets in accordance with the legislation.

{Part 1, Article 64 has been supplemented with paragraph 44 under Law No. 79-VIII of 28 December 2014; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

2. Individual income tax (except for the tax specified in the fifth paragraph of this part of the article), which is paid (transferred):

{Paragraph one, part 2 of Article 64 as revised by Law No. 2856-VI of 23 December 2010; as amended by Law No. 2621-VIII of 22 November 2018}

a tax agent – a legal entity (its branch, office, other separate subdivision) or a representative office of a non-resident – legal entity, is credited to the relevant budget at their location (location) in the amount of tax accrued on income paid to an individual;

{Paragraph 2, part 2 of Article 64 as revised by Law No. 2856-VI of 23 December 2010; as amended by Law No. 3614-VI of 07 July 2011}

tax agent – an individual, credited to the relevant budget at the place of registration of such an individual in the tax authorities;

{Paragraph 3, part 2 of Article 64 as amended by Laws No. 3614-VI of 07 July 2011, No. 642-IX of 02 June 2020}

a natural person who receives income from a person who is not a tax agent is credited to the relevant budget at the tax address of such natural person.

{Part 2 of Article 64 has been supplemented with paragraph 4 under Law No. 2856-VI of 23 December 2010; as amended by Law No. 3614-VI of 07 July 2011}

Individual income tax accrued by a tax agent or a natural person who receives income from a person who is not a tax agent, from income from the lease (sublease, emphyteusis) of land plots, land shares (units), allocated or not allocated in kind (on the ground), is paid by such tax agent or such individual to the relevant budget at the location of such leased objects (sublease, emphyteusis).

{Part 2 of Article 64 has been supplemented with paragraph 5 under Law No. 2621-VIII of 22 November 2018}

Article 64-1. Composition of revenues of the general fund of district budgets

1. The revenues of the general fund of district budgets include:

1) income tax of enterprises and financial institutions of municipal property, which founder are district councils;

2) payment for licenses for certain types of economic activity and certificates issued by district state administrations;

3) income from rent for the use of the property complex and other property in municipal ownership, the founder of which are district councils;

4) rent for water bodies (their parts), which are provided for use on lease terms by district state administrations, district councils;

5) concession payments for municipal property, the founder of which are district councils (except for concession payments specified in clause 3, part one, Article 69-1 of this Code);

6) funds received from the participants of the procurement procedure/simplified procurement as security for their tender offer/proposal of the participant of the simplified procurement, which is not subject to return to such participants, in terms of procurement at the expense of the district budgets;

{Paragraph 6, part 1 of Article 64-1 as revised by Law No. 1081-IX of 15 December 2020}

7) funds received from the winner of the procurement/simplified procurement procedure during the conclusion of the procurement contract as security for the performance of such contract, which is not refundable to the bidder, in terms of procurement at the expense of the district budget;

{Paragraph 7, part 1 of Article 64-1 as revised by Law No. 1081-IX of 15 December 2020}

8) 80 per cent of the funds received by enterprises, institutions and organisations maintained at the expense of the district budgets for gold, platinum, platinum group metals, precious stones, and 50 per cent of the funds received by these enterprises, institutions and organisations for silver handed over in the form of scrap and waste;

9) administrative fee for state registration of real rights to immovable property and their encumbrances, carried out by district state administrations, which is credited to the district budgets at the place of output of services;

10) administrative fee for state registration of legal entities, natural persons – entrepreneurs and public formations, carried out by district state administrations, which is credited to the district budgets at the place of output of services;

11) payment for reduction of terms of output of services in the field of state registration of real rights to immovable property and their encumbrances and state registration of legal entities, natural persons – entrepreneurs and public formations, as well as payment for the provision of other paid services related to such state registration, carried out by district state administrations, which is credited to the district budgets at the place of output of services;

35) part of the net profit (income) of communal unitary enterprises and their associations, which is withdrawn to the budget, in the manner determined by the district councils;

13) penalties due to non-fulfilment of agreements concluded by the budget manager with business entities for the purchase of goods, works and services at the expense of the relevant district budgets;

{Paragraph 13, part 1 of Article 64-1 as amended by Law No. 1081-IX of 15 December 2020}

14) payment for the provision of other administrative services, which is paid at the place of services provided;

{Part 1, Article 64-1 has been supplemented with paragraph 14 under Law No. 1081-IX of 15 December 2020}

15) payment for placement of temporarily free funds of district budgets;

{Part 1, Article 64-1 has been supplemented with paragraph 14 under Law No. 1081-IX of 15 December 2020}

16) other revenues subject to crediting to district budgets in accordance with the legislation.

{The Code has been supplemented with Article 64-1 under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Article 65 has been deleted under Law No. 79-VIII of 28 December 2014}

Article 66. composition of revenues of the general fund of the budget of the Autonomous Republic of Crimea, regional budgets

{Title of Article 66 as amended by Laws No. 79-VIII of 28 December 2014, No. 176-VIII of 10 February 2015}

1. Revenues of the general fund of the budget of the Autonomous Republic of Crimea and regional budgets include:

{Paragraph one, part 1 of Article 66 as revised by LawNo. 79-VIII of 28 December 2014}

1) 15 per cent of personal income tax (except for the tax specified in clause 1-1, part two, Article 29 of this Code), which is paid (transferred) in accordance with the Tax Code of Ukraine in the relevant territory;

{Paragraph 1, part 1 of Article 66 as amended by Law No. 2856-VI of 23 December 2010; as revised by Law No. 1588-VII of 04 July 2014; as amended by Law No. 79-VIII of 28 December 2014}

1-1) 10 per cent of corporate income tax (except for corporate income tax, the tax specified in clause 1-2 of this part of the article, clause 18, part one, Article 64 and clause 1, part one, Article 64-1 of this Code);

{Part 1, Article 66 has been supplemented with paragraph 1-1 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

1-2) income tax on enterprises and financial institutions of communal property.

Income tax on enterprises and financial institutions of municipal property, which founder is the Verkhovna Rada of the Autonomous Republic of Crimea and regional councils, is credited in accordance with the budget of the Autonomous Republic of Crimea, regional budgets;

{Part 1, Article 66 has been supplemented with paragraph 1-2 under Law No. 79-VIII of 28 December 2014}

{Paragraph 2, part 1 of Article 66 has been deleted under Law No. 2621-VIII of 22 November 2018}

3) 45 per cent of the rent for the special use of water (except for the rent for the special use of water of water bodies of local significance), which are credited to the budget of the Autonomous Republic of Crimea and regional budgets by water users at the place of its intake;

{Paragraph 3, part 1 of Article 66 as amended by Law No. 2856-VI of 23 December 2010; as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 2233-VIII of 07 December 2017}

4) 25 per cent of the rent for the use of subsoil for the extraction of minerals of national importance (except for the rent for the use of subsoil for the extraction of oil, natural gas, gas condensate and amber);

{Paragraph 4, part 1 of Article 66 as revised by Law No. 2856-VI of 23 December 2010; as amended by Law No. 5083-VI of 05 July 2012; as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

4-1) 2 per cent of rent for subsoil use for oil, natural gas and gas condensate extraction (except for rent for subsoil use within the continental shelf and/or exclusive (marine) economic zone of Ukraine), which is credited to the budget of the Autonomous Republic of Crimea, regional budgets for location (place of extraction) of relevant natural resources;

{Part 1, Article 66 has been supplemented with paragraph 4-1 under Law No. 1793-VIII of 20 December 2016}

5) payment for the use of other natural resources, which is credited to the budget of the Autonomous Republic of Crimea and regional budgets;

{Paragraph 5, part 1 of Article 66 as revised by Law No. 79-VIII of 28 December 2014}

6) excise tax on excisable goods (products) produced in Ukraine, paid by taxpayers registered in the Autonomous Republic of Crimea – to the budget revenues of the Autonomous Republic of Crimea;

{Paragraph 6, part 1 of Article 66 as revised by Law No. 2856-VI of 23 December 2010; as amended by Laws No. 5428-VI of 16 October 2012, No. 242-VII of 16 May 2013; as revised by Law No. 79-VIII of 28 December 2014}

{Paragraph 7, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 8, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 9, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 10, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 11, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 12, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 13, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

{Paragraph 14, part 1 of Article 66 has been deleted under Law No. 5428-VI of 16 October 2012}

15) rent for water bodies (parts thereof) provided for use on lease by the Council of Ministers of the Autonomous Republic of Crimea, regional state administrations, which is credited in accordance with the budget of the Autonomous Republic of Crimea, regional budgets;

{Changes to clause 15, part 1 of Article 66 see in law No. 1592-VII of 04 July 2014}

{Paragraph 15, part 1 of Article 66 as revised by Law No. 79-VIII of 28 December 2014}

16) part of the net profit (income) of municipal unitary enterprises and their associations, which is withdrawn to the budget, in the manner determined by the Verkhovna Rada of the Autonomous Republic of Crimea and regional councils;

{Part 1, Article 66 has been supplemented with paragraph 16 under Law No. 79-VIII of 28 December 2014}

17) payment for placement of temporarily free funds of the budget of the Autonomous Republic of Crimea and regional budgets (except for funds received by institutions of professional (vocational), professional higher and higher education from placement on deposits of temporarily free budget funds received for paid services, if such institutions are granted the relevant right by law);

{Part 1, Article 66 has been supplemented with paragraph 17 under Law No. 79-VIII of 28 December 2014;as amended by Laws No. 176-VIII of 10 February 2015, No. 293-IX of 14 November 2019}

18) fee for licenses for certain types of economic activity and certificates issued by the Council of Ministers of the Autonomous Republic of Crimea, regional state administrations, which is credited in accordance with the budget of the Autonomous Republic of Crimea and regional budgets;

{Part 1, Article 66 has been supplemented with paragraph 18 under Law No. 79-VIII of 28 December 2014}

19) fee for licenses and certificates (except for the fee for certification specified in clause 25-2, part two, Article 29 of this Code), which is credited to the budget of the Autonomous Republic of Crimea and regional budgets by licensees at the place of activity;

{Part 1, Article 66 has been supplemented with paragraph 19 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

20) license fee for the production of ethyl alcohol, cognac and fruit and grain distillate, rectified grape ethyl alcohol, rectified fruit ethyl alcohol, grape alcohol distillate, raw fruit alcohol, bioethanol, alcoholic beverages, tobacco products cigarettes, which is credited to the budget of the Autonomous Republic of Crimea and regional budgets by licensees at the place of activity;

{Part 1, Article 66 has been supplemented with paragraph 20 under Law No. 79-VIII of 28 December 2014;as amended by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

21) fee for licenses for the right of wholesale trade in ethyl alcohol, rectified grape ethyl alcohol, rectified fruit ethyl alcohol, which is credited to the budget of the Autonomous Republic of Crimea and regional budgets by licensees at the place of activity;

{Part 1, Article 66 has been supplemented with paragraph 21 under Law No. 79-VIII of 28 December 2014;as amended by Laws No. 293-IX of 14 November 2019, No. 836-VIII of 26 November 2015}

{Paragraph 22, part 1 of Article 66 has been deleted under Law No. 293-IX of 14 November 2019}

23) fee for state registration (except for the administrative fee for state registration of legal entities, natural persons – entrepreneurs and public formations), which is credited to the budget of the Autonomous Republic of Crimea and regional budgets;

{Part 1, Article 66 has been supplemented with paragraph 23 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 176-VIII of 10 February 2015, No. 836-VIII of 26 November 2015}

24) fee for licenses for the right of wholesale trade in alcoholic beverages, tobacco products and liquids used in electronic cigarettes, which is credited to the budget of the Autonomous Republic of Crimea and regional budgets by licensees at the place of activity;

{Part 1, Article 66 has been supplemented with paragraph 24 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

25) fee for licenses for the right of retail trade in alcoholic beverages, tobacco products and liquids used in electronic cigarettes, which is credited to the budget of the Autonomous Republic of Crimea and regional budgets by licensees at the place of activity;

{Part 1, Article 66 has been supplemented with paragraph 25 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

25-1) payment for licenses for fuel production, for the right to wholesale fuel, for the right to retail fuel, for the right to store fuel, which is credited to the budget of the Autonomous Republic of Crimea and regional budgets by licensees at the place of activity;

{Part 1, Article 66 has been supplemented with paragraph 25-1 under Law No. 293-IX of 14 November 2019}

26) administrative fines imposed by local executive bodies or administrative commissions formed by them in accordance with the established procedure;

{Part 1, Article 66 has been supplemented with paragraph 26 under Law No. 79-VIII of 28 December 2014}

27) penalties due to non-fulfilment of agreements concluded by the administrator of budget funds with business entities for the purchase of goods, works and services at the expense of the budget of the Autonomous Republic of Crimea, regional budgets;

{Part 1, Article 66 has been supplemented with paragraph 27 under Law No. 79-VIII of 28 December 2014}

28) receipts from rent for the use of property complex and other property in communal ownership, which founder is the Verkhovna Rada of the Autonomous Republic of Crimea, regional councils;

{Part 1, Article 66 has been supplemented with paragraph 28 under Law No. 79-VIII of 28 December 2014}

29) concession payments for objects of communal property, the founder of which is the Verkhovna Rada of the Autonomous Republic of Crimea, regional councils (except for concession payments specified in clause 3, part one, Article 69-1 of this Code);

{Part 1, Article 66 has been supplemented with paragraph 29 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 176-VIII of 10 February 2015}

30) funds received from the participants of the procurement procedure/simplified procurement as security for their tender offer / proposal of the simplified procurement participant, which are not subject to return to such participants, in terms of procurement at the expense of the budget of the Autonomous Republic of Crimea, regional budgets;

{Part 1, Article 66 has been supplemented with paragraph 30 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1789-VIII of 20 December 2016; as revised by LawNo. 1081-IX of 15 December 2020}

31) funds received from the winner of the procurement/simplified procurement procedure during the conclusion of the procurement contract as security for the performance of such contract, which are not refundable to the participant, in terms of procurement at the expense of the budget of the Autonomous Republic of Crimea, regional budgets;

{Part 1, Article 66 has been supplemented with paragraph 31 under Law No. 79-VIII of 28 December 2014; as revised by LawNo. 1081-IX of 15 December 2020}

32) 80 per cent of the funds received by enterprises, institutions and organisations maintained at the expense of the budget of the Autonomous Republic of Crimea and regional budgets for gold, platinum, platinum group metals, precious stones, and 50 per cent of the funds received by these enterprises, institutions and organisations for silver handed over in the form of scrap and waste;

{Part 1, Article 66 has been supplemented with paragraph 32 under Law No. 79-VIII of 28 December 2014}

{Clause 33, part 1 of Article 66 has been deleted under Law No. 918-VIII of 24 December 2015}

34) other revenues to be credited to the budget of the Autonomous Republic of Crimea and regional budgets in accordance with the legislation.

{Part 1, Article 66 has been supplemented with paragraph 34 under Law No. 79-VIII of 28 December 2014}

{Part 2 of Article 66 has been deleted under Law No. 79-VIII of 28 December 2014}

Article 67. Certain features of local budgets

1. Revenues and expenditures of the budget of the city of Kyiv shall be formed in accordance with the procedure established by this Code, taking into account the law determining the special status of the city of Kyiv. While:

{Paragraph one, part 1 of Article 67 as amended by Law No. 1081-IX of 15 December 2020}

1) the composition of expenditures and crediting of the budget of the city of Kyiv is determined in accordance with Articles 89-91 of this Code;

{Clause 1, part 1 of Article 67 as amended by Law No. 914-VIII of 24 December 2015}

1-1) the revenues of the budget of the city of Kyiv include the revenues specified in Articles 64, 69-1 of this Code and transfers from other budgets.

{Part 1, Article 67 has been supplemented with paragraph 1-1 under Law No. 1081-IX of 15 December 2020}

{Clause 2, part 1 of Article 67 has been deleted under Law No. 1081-IX of 15 December 2020}

{Part one of Article 67 as revised by Law No. 1210-VII of 15 April 2014}

2. Revenues of the general fund of local budgets include revenues specified in Articles 64, 64-1 and 66 of this Code and transfers from other budgets (except for subventions specified in Article 69-1 and part one, Article 71 of this Code).

{Part 2 of Article 67 has been supplemented with a new paragraph under Law No. 4318-VI of 12 January 2012; as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

If the law establishes a new type of income of local budgets, its crediting is determined by the law on the State Budget of Ukraine for the period before the relevant amendments to this Code.

3. The taxes and fees defined by Articles 64 and 69-1 of this Code paid by enterprises operating in the exclusion zone and in the zone of unconditional (compulsory) resettlement (if local self-government bodies have not been formed in such territories) shall be credited to relevant local government budgets in the parts specified by this Code and other regulations.

{Part 3 of Article 67as amended by Laws No. 176-VIII of 10 February 2015, No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Part four of Article 67 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

Article 67-1. Features of the relationship between the state budget and the budgets of the Autonomous Republic of Crimea and the city of Sevastopol

1. For the purposes of this article, local budgets of the Autonomous Republic of Crimea shall mean the budget of the Autonomous Republic of Crimea, district budgets and budgets of local self-government in the territory of the Autonomous Republic of Crimea, the budget of the city of Sevastopol.

{Part one of Article 67-1 as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

2. The provisions of this Code for the budgets of the Autonomous Republic of Crimea and the city of Sevastopol shall be applied taking into account the following features:

1) revenues specified in parts two and three, Article 29 of this Code and paid (transferred) in the territory of the Autonomous Republic of Crimea and the city of Sevastopol, and payments specified in clause 2, part two, Article 29 of this Code shall be credited in full to the budget of the Autonomous Republic of Crimea;

{Paragraph 1, part 2 of Article 67-1 as amended by Law No. 79-VIII of 28 December 2014}

2) revenues defined by Articles 64-66, 69-1 і 71 of this Code and paid (transferred) on the territory of the Autonomous Republic of Crimea and the city of Sevastopol, credited to the local budgets of the Autonomous Republic of Crimea;

{Paragraph 2, part 2 of Article 67-29 as amended by Laws No. 79-VIII of 28 December 2014, No. 1081-IX of 15 December 2020}

3) refund of erroneously and/or overpaid monetary obligations from taxes and fees and budget reimbursement of value added tax to taxpayers registered in the Autonomous Republic of Crimea and the city of Sevastopol shall be made from the budget of the Autonomous Republic of Crimea;

4) expenditures and crediting of local budgets are carried out at the expense and within the limits of receipts to local budgets of the Autonomous Republic of Crimea without application of the equalisation mechanism which provides granting of subsidy of equalisation or transfer of means to the state budget;

5) expenditures and lending carried out from local budgets of the Autonomous Republic of Crimea include expenditures:

defined according to Articles 89–91 of this Code;

defined by clauses 4, 7–17 та 21, part one, Article 87 of this Code carried out on the territory of the Autonomous Republic of Crimea and the city of Sevastopol, as well as expenditures on public administration (local state administrations and territorial bodies of state bodies in the Autonomous Republic of Crimea and the city of Sevastopol) and the judiciary, local courts of appeal in the Autonomous Republic of Crimea and the city of Sevastopol);

{Paragraph 3, clause 5, part 2 of Article 67-1as amended by Laws No. 79-VIII of 28 December 2014, No. 176-VIII of 10 February 2015}

{Paragraph 5, part 2 of Article 67-1 as amended by Law No. 914-VIII of 24 December 2015}

6) provisions of clause 2, part one, Article 73 and Articles 97-103-6 of this Code are not applied to the budgets of the Autonomous Republic of Crimea and the city of Sevastopol;

{Paragraph 6, part 2 of Article 67-1 as amended by Laws No. 79-VIII of 28 December 2014, No. 1081-IX of 15 December 2020}

7) inter-budgetary relations between local budgets of the Autonomous Republic of Crimea shall be regulated in accordance with the procedure approved by the Council of Ministers of the Autonomous Republic of Crimea.

{The Code has been supplemented with Article 67-1 under Law No. 1210-VII of 15 April 2014}

Article 67-2. Features of formation and execution of local budgets in Donetsk and Luhansk regions for the period of anti-terrorist operation and/or Joint Forces Operation

{Title of Article 67-2 as amended by Law No. 2621-VIII of 22 November 2018}

1. In case of termination of activity of local governments of Donetsk and Luhansk regions, their functions concerning budgetary powers are carried out by local state administrations and executive bodies of city councils by the separate decision of the Cabinet of Ministers of Ukraine adopted based on the address of the corresponding regional state administration or military-civil administrations according to the Law of Ukraine "On military-civil administrations" in case of their formation.

{Part one of Article 67-2 as amended by Law No. 486-VIII of 2 June 2015}

{The Code has been supplemented with Article 67-2 under Law No. 79-VIII of 28 December 2014}

Article 68. Composition of revenues and expenditures of district budgets in cities

1. The composition of revenues and expenses of budgets of districts in cities (in case of their creation) is defined by city council according to the powers transferred to district councils in cities.

2. Distribution of interbudgetary transfers amounts between the city budget and budgets of districts in the city (in case of their creation) is carried out according to the procedure approved by city council.

{Part 3 of Article 68 has been deleted under Law No. 1081-IX of 15 December 2020}

{Article 69 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

Article 69-1. Revenues of the special fund of local budgets

1. The revenues of the special fund of local budgets include:

1) revenues of the development budget in local budget (defined in part one, Article 71 of this Code);

2) funds from compensation for losses of agricultural and forestry production, credited in the amount of: 100 per cent – to the budgets of Kyiv and Sevastopol, 25 per cent – to the budget of the Autonomous Republic of Crimea and regional budgets, 75 per cent – to local governments (except budgets of Kyiv) and Sevastopol);

{Clause 2, part 1 of Article 69-1 as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

3) concession payments for municipal property targeted in accordance with the law;

4) 70 per cent of fines for damage caused by violation of environmental legislation as a result of economic and other activities, including: to local government budgets (except for the budgets of Kyiv and Sevastopol) – 50 per cent, regional budgets and the budget of the Autonomous Republic of Crimea – 20 per cent, budgets of the cities of Kyiv and Sevastopol – 70 per cent;

{Clause 4, part 1 of Article 69-1 as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

4-1) 55 per cent of the environmental tax (except for the environmental tax specified in clause 16-1, part two, Article 29 of this Code), including: 25 per cent to local government budgets (except for the budgets of Kyiv and Sevastopol), 30 per cent to regional budgets and the budget of the Autonomous Republic of Crimea, 55 per cent to the budgets Kyiv and Sevastopol;

{Article 69-1 has been supplemented with paragraph 4-1 under Law No. 918-VIII of 24 December 2015; as amended by Law No. 2233-VIII of 07 December 2017; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Clause 5, part 1 of Article 69-1 has been deleted under Law No. 2621-VIII of 22 November 2018}

6) own revenues of budget institutions maintained at the expense of the relevant local budget;

7) targeted and voluntary contributions of enterprises, institutions, organisations and citizens to the republican Autonomous Republic of Crimea and local funds for environmental protection;

8) revenues to trust funds established by the Verkhovna Rada of the Autonomous Republic of Crimea and local councils;

9) subventions provided from other budgets at the expense of specifically determined revenues of the special fund of such budgets;

{Clause 9, part 1 of Article 69-1 as amended by Law No. 176-VIII of 10 February 2015}

10) repayment of loans provided from local budgets to individual rural developers;

11) repayment of loans provided from local budgets to young families and single young citizens for construction (reconstruction) and purchase of housing, as well as late payment fines and interest for their use;

12) receipts within the framework of assistance programmes and grants of the European Union, governments of foreign states, international organisations, donor institutions;

{Clause 12, part 1 of Article 69-1 as revised by Law No. 2233-VIII of 07 December 2017}

13) other revenues specified by the law on the State Budget of Ukraine.

{The Code has been supplemented with Article 69-1 under Law No. 79-VIII of 28 December 2014}

Article 70. Expenditures and crediting of local budgets

1. Expenditures and crediting of local budgets shall include budget allocations established by the decision on the local budget for specific purposes related to the implementation of programmes and activities in accordance with Articles 89-91 of this Code.

{Part one of Article 70 as amended by Law No. 914-VIII of 24 December 2015}

2. Funds of the special fund of local budgets are spent on the measures provided by the decision on the local budget according to the legislation.

Article 71. Development budget of local budgets

1. Revenues of the development budget in local budgets include:

{Clause 1, part 1 of Article 71 has been deleted under Law No. 2856-VI of 23 December 2010}

{Clause 1-1, part 1 of Article 71 has been deleted under Law No. 79-VIII of 28 December 2014}

{Clause 2, part 1 of Article 71 has been deleted under Law No. 79-VIII of 28 December 2014}

3) dividends (income) accrued on shares (stakes) of business companies, which authorised capital includes property of the Autonomous Republic of Crimea, municipal property;

{Clause 3, part 1 of Article 71 as amended by Law No. 2233-VIII of 07 December 2017}

4) payment for the provision of local guarantees (in accordance with Article 17 of this Code);

4-1) funds of equity participation in the development of the infrastructure of the settlement, received in accordance with the Law of Ukraine "On regulation of urban planning";

{Part 1, Article 71 has been supplemented with paragraph 4-1 under Law No. 3614-VI of 07 July 2011}

4-2) 10 per cent of the funds from the use (sale) of the part of the manufactured products remaining in the ownership of the state in accordance with the agreements on distribution of products, and/or funds in the form of monetary equivalent of such state part of the products continental shelf and exclusive (marine) economic zone of Ukraine), distributed between local budgets of administrative-territorial units, on which territory the relevant subsoil area is located, in the following ratio: 5 per cent – to the budget of the Autonomous Republic of Crimea or regional budget; 5 per cent – to the relevant local government budget. If the subsoil area is located on the territory of several administrative-territorial units, the funds between the relevant local budgets are distributed within the established ratio in the manner prescribed by the Cabinet of Ministers of Ukraine;

{Part 1, Article 71 has been supplemented with paragraph 4-2 under Law No. 665-VII of 05 November 2013; as amended by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

5) funds from the alienation of property belonging to the Autonomous Republic of Crimea and property in communal ownership, including funds from the sale of non-agricultural land plots or rights to them;

{Clause 5, part 1 of Article 71 as amended by Law No. 176-VIII of 10 February 2015}

6) 90 per cent of funds from the sale of non-agricultural land or rights to them that are in state ownership to the delimitation of state and communal lands, with the sale of land located in the Autonomous Republic of Crimea: 35 per cent – to the budget of the Autonomous Republic of Crimea, 55 per cent – to rural, settlement, city budgets of the Autonomous Republic of Crimea;

{Clause 6, part 1 of Article 71 as amended by Law No. 1081-IX of 15 December 2020}

7) capital transfers (subventions) from other budgets;

{Clause 7, part 1 of Article 71 as revised by Law No. 3614-VI of 07 July 2011}

8) funds from the repayment of loans granted from the relevant budget and interest paid for their use (except for the revenues specified in clauses 10 and 11, part one, Article 69-1 of this Code);

{Clause 8, part 1 of Article 71 as revised by Law No. 3614-VI of 07 July 2011; as amended by Law No. 176-VIII of 10 February 2015}

9) local borrowings made in accordance with the procedure established by this Code and other laws of Ukraine;

10) funds transferred from another part of the local budget by the decision of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council (for funds of the reserve fund of the local budget in terms of development budget expenditures – by the decision of the Council of Ministers local council).

{Clause 10, part 1 of Article 71 as amended by Law No. 3614-VI of 07 July 2011}

2. Expenditures of the budget for the local budgets development include:

1) repayment of local debt, including through a subvention from the state budget to local budgets for financial support of construction, reconstruction, repair and maintenance of public roads of local importance, streets and roads of municipal property in settlements;

{Paragraph 1, part 2 of Article 71 as revised by Law No. 677-IX of 04 June 2020}

2) capital expenditures, including capital transfers to other budgets (except for capital expenditures made at the expense of the revenues of the special fund of local budgets specified in clauses 2-13, part one, Article 69-1 of this Code);

{Paragraph 2, part 2 of Article 71 as amended by Law No. 176-VIII of 10 February 2015}

3) contributions of the authorities of the Autonomous Republic of Crimea and local governments to the authorised capital of the business entity;

4) conducting an expert monetary valuation of the land plot to be sold in accordance with Article 128 of the Land Code of Ukraine, at the expense of the advance paid by the buyer of the land plot;

5) preparation of non-agricultural land plots or rights to them of state (before delimitation of state and communal lands) or municipal property for sale at land auctions and conducting such auctions;

{Part 2 of Article 71 has been supplemented with paragraph 5 under Law No. 2856-VI of 23 December 2010}

6) payments related to the fulfilment of guarantee obligations of the Autonomous Republic of Crimea, regional council or city territorial community;

{Part 2 of Article 71 has been supplemented with paragraph 6 under Law No. 3614-VI of 07 July 2011; as amended by Law No. 2621-VIII of 22 November 2018}

7) development of urban planning documentation at the local and regional levels.

{Part 2 of Article 71 has been supplemented with paragraph 7 under Law No. 5496-VI of 20 November 2012}

3. Capital expenditures of the development budget are directed to socio-economic development of regions investment projects; implementation; construction, overhaul and reconstruction of social and cultural facilities and housing and communal services; construction of gas pipelines and gasification of settlements; construction and purchase of housing for certain categories of citizens in accordance with the law; preservation and development of historical and cultural places of Ukraine and reserves; construction and development of the metro network; purchase of cars for municipal electric transport; road development; purchase of school buses and ambulances; updating the material and technical base of communal health care institutions, computerisation and informatisation of general secondary education institutions and communal health care institutions; environmental protection measures; other activities related to extended playback.

{Part 3 of Article 729 as amended by Laws No. 79-VIII of 28 December 2014, No. 2233-VIII of 07 December 2017, No. 293-IX of 14 November 2019}

4. The budget for the development of local budgets is an integral part of the special fund of local budgets.

{Part 5 of Article 71 has been deleted under Law No. 1081-IX of 15 December 2020}

Article 72. Features of approval for the local budget with a deficit or surplus

1. The local budget may be approved with a deficit for the general fund in the case of using the free balance of budget funds (by amending the decision on the local budget based on the annual report on the implementation of the local budget for the previous budget period).

The local budget may be approved with a surplus on the general fund in the case of directing of funds from the general fund of such local budget to the development budget, fulfilment of outstanding loans, as well as to ensure the established amount of working capital balance (by amending the decision on local budget based on the results of the annual report on the implementation of the local budget for the previous budget period).

2. The local budget may be approved with a deficit on the special fund in case of attraction to the development budget of funds from local borrowings, funds from the general fund of such local budget, receipts from sale/presentation of securities, and in case of use of balances of special fund in local budget, except for own revenues of budgetary institutions (by amending the decision on the local budget based on the results of the annual report on the implementation of the local budget for the previous budget period).

The local budget can be approved with a surplus on a special fund in case of local debt repayment, purchase of securities.

Article 73. Loans to local budgets

1. The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of the relevant local councils may receive by decision of the Verkhovna Rada of the Autonomous Republic of Crimea or the relevant local council:

1) loans to cover temporary cash gaps arising from the general fund and development budget in the local budget, in financial institutions for up to three months within the current budget period, in exceptional cases by decision of the Cabinet of Ministers of Ukraine on the budget of the Autonomous Republic of Crimea and city budgets – within the current budget period. The procedure for obtaining and repaying such loans is determined by the Ministry of Finance of Ukraine;

2) loans to cover temporary cash gaps in local budgets in accordance with part five, Article 43 of this Code. Such loans are not provided in the case of placement of local budget funds on deposits and/or servicing of local budget funds in terms of development budget and own revenues of budgetary institutions in banking institutions.

{Clause 2, part 1 of Article 73 as amended by Law No. 79-VIII of 28 December 2014}

{Clause 3, part 1 of Article 73 has been deleted under Law No. 79-VIII of 28 December 2014}

2. Granting loans from one budget to another is prohibited.

Article 74. Features of local borrowing and local guarantees

{Title of Article 74 as amended by Law No. 3614-VI of 07 July 2011}

1. Local borrowings are made to finance the development budget:

in the budget of the Autonomous Republic of Crimea, city budgets and are used to create, increase or update long-term strategic facilities or facilities ensuring the tasks of the Verkhovna Rada of the Autonomous Republic of Crimea and city councils aimed at meeting the interests of the population of the Autonomous Republic of Crimea and city territorial communities;

in the regional budgets and are used to create, increase or upgrade long-term strategic facilities or facilities that ensure the implementation of tasks of regional councils aimed at meeting the common interests of territorial communities, restoration and reconstruction of common property of territorial communities or state property managed by regional councils, regional state administrations, as well as construction, reconstruction, overhaul of public roads of state and local importance.

{Part one of Article 74 as revised by Law No. 2621-VIII of 22 November 2018}

2. The scope and conditions of local borrowing and the provision of local guarantees shall be agreed with the Ministry of Finance of Ukraine. The amount and conditions of local external borrowing by obtaining credits (loans) from international financial organisations and providing local guarantees to ensure full or partial fulfilment of debt obligations of economic entities arising from credits (loans) from international financial organisations are considered agreed, if the Ministry of Finance of Ukraine has not made a decision within one month from the date of receipt of documents for approval.

{Part 2 of Article 74 as amended by Laws No. 3614-VI of 07 July 2011, No. 79-VIII of 28 December 2014}

3. The Ministry of Finance of Ukraine shall register local borrowings and local guarantees. All agreements on local borrowings, agreements under which obligations are secured by local guarantees, and agreements on reimbursement of local budget expenditures, as well as changes in the material terms of such agreements are registered in the Register of Local Borrowings and Local Guarantees.

4. The state is not liable for the debt obligations of the Autonomous Republic of Crimea, regional councils and territorial communities.

{Part 4 of Article 74 as amended by Law No. 2621-VIII of 22 November 2018}

5. Expenditures on local debt service shall be made at the expense of the general fund of the local budget, and in part of local debt service on local borrowings involved in repair and construction works on public roads of local significance and municipal property, the relevant expenditures may also be made from special fund of the local budget at the expense of a subvention from the state budget to local budgets for financial support of construction, reconstruction, repair and maintenance of public roads of local significance, streets and roads of communal property in settlements (not more than 10 per cent of such subvention approved by law on the State Budget of Ukraine for the relevant local budget).

{Part 5 of Article 74 as amended by Laws No. 2621-VIII of 22 November 2018, No. 677-IX of 04 June 2020}

6. Expenditures of the local budget for servicing local debt may not exceed 10 per cent of expenditures of the general fund of the local budget during any budget period when servicing local debt is planned.

7. If the payment schedule is violated in the process of making payments on repayment and servicing of local debt and guaranteed local debt stipulated by the agreement between the creditor and the borrower and/or the transaction of local guarantee, leading to accrual and payment of any penalties, the Verkhovna Rada Autonomous Republic of Crimea, the relevant regional and city councils have no right to make new local borrowings and provide local guarantees for the next three years.

{Part 7 of Article 74 as amended by Law No. 2621-VIII of 22 November 2018; as revised by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

8. Procedure for making local borrowings and providing local guarantees shall be established by the Cabinet of Ministers of Ukraine in accordance with the conditions specified in this Code.

{Part 8 of Article 74 as amended by Law No. 3614-VI of 07 July 2011}

Chapter 12.  PREPARATION, REVIEW, APPROVAL, IMPLEMENTATION AND REPORTING OF LOCAL BUDGETS

Article 75. Organisational principles of forecasting local budgets and draft local budgets

{Title of Article 75 as revised by Law No. 2646-VIII of 06 December 2018}

{The provisions of Article 75 (in terms of local budget forecasting) shall apply from 1 January 2020 – see clause 49, Section VI of this Code}

1. {Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the rules do not apply, part 1 of Article 75 for local budget forecasts – see Clause 2, Section II of the Law No. 553-IX of 13 April 2020} The Ministry of Finance of Ukraine informs the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of local councils of the peculiarities of compiling calculations for local budget forecasts and draft local budgets.

The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of local councils compile forecasts of local budgets and draft local budgets.

The draft local budget for the planned budget period is based on the indicators defined in the local budget forecast approved in the year preceding the planned one.

{Part one of Article 75 as revised by Law No. 2646-VIII of 06 December 2018}

2. The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils are obliged to provide the necessary information to: central executive bodies ensuring the formation of state policy in the relevant field – to calculate intergovernmental transfers and other indicators; Committee of the Verkhovna Rada of Ukraine on Budget – to consider these calculations.

{Part 2 of Article 75 as amended by Law No. 79-VIII of 28 December 2014}

3. In accordance with the standard form of budget requests, determined by the Ministry of Finance of Ukraine in accordance with Article 34 of this Code and taking into account the features of drafting local budgets, local financial authorities shall develop and submit to budget managers instructions on budget requests.

4. Key spending units shall organise the development of budget requests for submission to local financial authorities within the timeframe and procedure established by these bodies. The key spending units ensure the timeliness, reliability and content of budget requests submitted to local financial authorities, which should contain all the information necessary for the analysis of local budget project indicators, in accordance with the requirements of local financial authorities.

5. Local financial authorities analyze the budget request submitted by the chief administrator of budget funds, in terms of its compliance with the purpose, priority, as well as the effectiveness and efficiency of budget funds at any stage of drafting and consideration of draft local budgets. Based on the results of the analysis, the head of the local financial body decides to include the budget request in the draft local budget proposal before submitting it to the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils.

6. District state administrations in the cities of Kyiv and Sevastopol shall submit to the relevant city financial bodies proposals on the indicators of the draft relevant budgets, determined taking into account the requirements of parts three to five of this article.

{Part 6 of Article 75 as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

7. Rural, settlement and city territorial communities may pool budget funds on a contractual basis for the implementation of joint projects or for joint financing (maintenance) of utilities, organisations and institutions, subject to Article 93 of this Code.

{Part 7 of Article 75 as amended by Laws No. 79-VIII of 28 December 2014, No. 1081-IX of 15 December 2020}

8. The Ministry of Finance of Ukraine shall provide information to the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils. requirements and other indicators for drafting local budgets, as well as proposals for the form of the draft decision on the local budget (the standard form of decision) within a week from the date of approval by the Cabinet of Ministers of Ukraine of the draft law on the State Budget of Ukraine.

9. Within a week from the date of adoption of the draft law on the State Budget of Ukraine in the second reading, the Ministry of Finance of Ukraine shall provide for the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils the information on indicators of inter-budgetary relations defined by such law (including amounts of inter-budgetary transfers for the corresponding budgets) and text articles, and also organisational and methodological requirements concerning drawing up of projects of local budgets. The Council of Ministers of the Autonomous Republic of Crimea, regional state administrations shall prove to the executive bodies of village, settlement, city councils the appropriate amounts of subventions for state social protection programmes, additional subsidies for state budget expenditures and Health Care within three days from the date of receipt of such documents.

{Part 9 of Article 75 as amended by Laws No. 837-VIII of 26 November 2015, No. 2233-VIII of 07 December 2017, No. 2646-VIII of 06 December 2018, No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

10. The information received according to parts five, six, eighth and ninth of this article, is the basis for drawing up of projects of local budgets and preparation of draft decisions on the corresponding local budgets by Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of the corresponding local councils.

Article 75-1. Preparation and approval of the local budget forecast

{Temporarily, from the date of entry into force of the Law No. 553-IX of 13 April 2020 until 1 January 2021, the provisions of Article 75 shall not apply-1 – see Clause 2, Section II of the Law No. 553-IX of 13 April 2020}

{The provisions of Article 75-1 apply from 1 January 2020 – see clause 49 Section VI of this Code}

1. The local financial body determines the indicators of the local budget for the medium term and is the basis for drafting the local budget annually together with other main managers of budget funds in accordance with the goals and priorities defined in the forecast and programme documents of economic and social development of Ukraine and the relevant territory, and taking into account the Budget Declaration.

Organizational and methodological principles of local budget forecasting (including a standard form of local budget forecast) are determined by the Ministry of Finance of Ukraine.

2. Indicators of the local budget forecast are determined taking into account the provisions and indicators defined for the relevant budget periods by the Budget Declaration and the local budget forecast approved in the previous budget period.

In this case, the indicators of the local budget forecast may differ from the indicators determined for the relevant budget periods by the local budget forecast approved in the previous budget period, in the case of:

1) deviation of the assessment for the main forecast macro indicators of economic and social development of Ukraine and the main forecast indicators for economic and social development of the respective territory from the forecast taken into account when compiling the local budget forecast approved in the previous budget period;

2) deviation of budget indicators determined by the decision on the local budget from similar indicators defined in the forecast of the local budget approved in the previous budget period;

3) adoption of new legislative and other regulatory acts, decisions of the Autonomous Republic of Crimea, local state administrations, local self-government bodies affecting the indicators of the local budget in the medium term.

3. The local financial body determines local budget funding, repayment of loans to the local budget and indicative limits of local budget expenditures and provision of loans from the local budget for the medium term based on the main forecast macroeconomic and social development of Ukraine and the main forecast indicators of economic and social development of the territory for the medium term and analysis of local budget execution in previous and current budget periods forecasts local budget revenues.

4. The local financial body shall develop and, within the timeframe specified by it, communicate instructions on the preparation of proposals for the local budget forecast and indicative limits on local budget expenditures and loans from the local budget for the medium term to the key spending units.

Instructions for preparing proposals for the local budget forecast may introduce additional financial restrictions, organisational and other requirements that must be met by all budget managers in the process of preparing proposals for the local budget forecast.

The local financial body analyzes the proposals submitted by the main budget managers to the local budget forecast for compliance with the informed indicative limits of local budget expenditures and the provision of loans from the local budget and the requirements for the provided instructions.

Based on this analysis, the head of the local financial authority decides to include the proposals of the key spending units in the forecast of the local budget.

5. Local financial bodies shall submit forecasts of the relevant local budgets to the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of the respective local councils by August 15 of the year preceding the planned year.

6. The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils shall consider and approve forecasts of relevant local budgets no later than September 1 of the year preceding the planned year and submit them together with financial and economic justification to the Verkhovna Rada of the Autonomous Republic of Crimea, relevant local councils for consideration in the manner prescribed by the relevant councils.

The local budget forecast approved in the previous budget period shall cease to be valid from the date of approval of the local budget forecast.

{Part 6 of Article 75-1 has been supplemented with paragraph 2 under Law No. 1081-IX of 15 December 2020}

7. The of the local budget forecast contains provisions including:

{Paragraph one, part 7 of Article 75-1 as amended by Law No. 293-IX of 14 November 2019}

1) the main forecast indicators of economic and social development for the respective territory, taken into account during the development of the local budget forecast;

2) general indicators of local budget revenues and financing, repayment of loans to the local budget, general limits of local budget expenditures and granting of loans from the local budget (divided into general and special funds);

3) indicators for the main types of local budget revenues (divided into general and special funds);

4) indicators of local budget deficit (surplus), indicators of the main sources of financing for the local budget (divided into general and special funds), as well as indicators of local debt guaranteed by the Autonomous Republic of Crimea, regional council or city territorial community of debt and local guarantees;

5) marginal indicators of local budget expenditures and granting loans from the local budget to the key spending units (divided into general and special funds);

6) amounts of capital investments in the context of investment projects, defined within the general limits of local budget expenditures and the provision of loans from the local budget;

6-1) provisions on the relationship of the local budget with other local budgets (including indicators required to make forecasts of other local budgets);

{Part 7 of Article 75-1 has been supplemented with paragraph 6-1 under Law No. 293-IX of 14 November 2019}

7) other indicators and provisions necessary for drafting a decision on the local budget.

{The Code has been supplemented with Article 75-1 under Law No. 2646-VIII of 06 December 2018}

Article 76. Draft decision on the local budget and the materials attached to it, subject to regulation of the decision on the local budget

{Title of Article 76 as amended by Law No. 2621-VIII of 22 November 2018}

1. The draft decision on the local budget shall be approved by the Council of Ministers of the Autonomous Republic of Crimea, local state administration or executive body of the relevant local council before its consideration at the session of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council. The following is provided along with it:

1) an explanatory note to the draft decision, which shall contain:

a) information on the socio-economic condition of the relevant administrative-territorial unit and the forecast of its development for the next budget period, which are the basis of the draft local budget;

b) assessment of local budget revenues taking into account losses of local budget revenues as a result of tax benefits provided by the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council;

c) explanation for the main provisions of the draft decision on the local budget, including analysis of the proposed expenditures and lending according to the budget classification. Explanations include budget indicators for the previous, current, next budget periods in terms of expenditure classification and budget lending;

d) substantiation for the features of inter-budgetary relations and provision of subventions for the investment projects implementation;

e) information on repayment of local debt, amounts and conditions of local borrowings;

{Clause 2, part 1 of Article 76 has been deleted under Law No. 2646-VIII of 06 December 2018}

3) the project of indicators of the consolidated budget of the city territorial community (as a part of which districts in the city are formed);

{Paragraph 3, part 1 of Article 76 as revised by Laws No. 907-IX of 17 September 2020, No. 1081-IX of 15 December 2020}

4) indicators of local budget expenditures required for subsequent budget periods for the completion of investment projects included in the budget, provided that the implementation of such projects lasts more than one budget period;

{Clause 4, part 1 of Article 76 as amended by Law No. 1789-VIII of 20 December 2016}

5) list of investment projects for the medium term;

{Clause 2, part 1 of Article 76 as amended by Law No. 2646-VIII of 06 December 2018}

5-1) lists and amounts of long-term liabilities for energy service under budget programmes until the full completion of settlements with energy service providers;

{Part 1, Article 76 has been supplemented with paragraph 5-1 under Law No. 328-VIII of 09 April 2015}

6) information on the progress of the relevant budget in the current budget period;

7) explanations of the main managers of budget funds to the draft of the relevant budget (submitted to the budget commission of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council);

8) other materials, which scope and form are determined by the Council of Ministers of the Autonomous Republic of Crimea, the local state administration or the executive body of the relevant local council.

2. Decision on the local budget determines:

1) total amounts of revenues, expenditures and lending to the local budget (divided into general and special funds);

{Paragraph 1, part 2 of Article 76 as amended by Law No. 176-VIII of 10 February 2015}

2) the maximum amount of annual deficit (surplus) of the local budget in the next budget period, local debt and debt guaranteed by the Autonomous Republic of Crimea, regional council or city territorial community at the end of the next budget period; the maximum amount of local guarantees, as well as the authority to provide such guarantees, taking into account the provisions of Article 17 of this Code;

{Paragraph 2, part 2 of Article 76 as amended by Law No. 293-IX of 14 November 2019}

3) local budget revenues according to the budget classification (in the annexe to the decision);

3) local budget financing according to the budget classification (in the annexe to the decision);

5) budget allocations to the main managers of local budget funds according to the budget classification with mandatory allocation of consumption expenditures (including expenditures on labour, utilities and energy) and development expenditures (in the annexes to the decision);

5-1) amounts of capital investments in terms of investment projects;

{Part 2 of Article 76 has been supplemented with paragraph 5-1 under Law No. 1081-IX of 15 December 2020}

6) budget allocations of intergovernmental transfers (in the annexes to the decision);

7) the amount of the circulating balance of the local budget;

8) additional provisions governing the local budget execution process.

3. The list of protected expenditures of the local budget is determined base on Article 55 of this Code.

4. In the decision on the local budget, expenditures and crediting by the key spending units shall be detailed by programme classification of expenditures and crediting of the local budget, by groups of functional classification of expenditures and budget crediting and separate categories of economic classification for budget expenditures and classification for budget crediting.

{Article 76 has been supplemented with part 4 under Law No. 2621-VIII of 22 November 2018}

Article 77. Approval of local budgets

1. In accordance with the parts nine and ten, Article 75 of this Code, the Verkhovna Rada of the Autonomous Republic of Crimea, relevant local councils shall take into account intergovernmental transfers and other provisions (necessary for local budgets) approved by the Verkhovna Rada of Ukraine when adopting the draft law in the second reading when approving local budgets.

2. Local budgets shall be approved by a decision of the Verkhovna Rada of the Autonomous Republic of Crimea and the relevant local council by December 25 (inclusive) of the year preceding the planned year.

{Paragraph one, part 2 of Article 77 as amended by Law No. 1789-VIII of 20 December 2016}

If the Verkhovna Rada of Ukraine does not adopt a law on the State Budget of Ukraine by 1 December of the year preceding the planned year, the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council when approving the relevant local budgets takes into account the number of intergovernmental transfers defined in the draft law on the State Budget of Ukraine for the planned budget period submitted by the Cabinet of Ministers to the Verkhovna Rada of Ukraine.

{Paragraph 2, part 2 of Article 77as amended by Laws No. 176-VIII of 10 February 2015, No. 914-VIII of 24 December 2015, No. 2233-VIII of 07 December 2017}

The Verkhovna Rada of the Autonomous Republic of Crimea and the relevant local council shall bring the amounts of intergovernmental transfers in line with the law on the State Budget of Ukraine within two weeks from the date of official publication of the law on the State Budget of Ukraine.

{Part 2 of Article 77 as revised by LawNo. 79-VIII of 28 December 2014}

{Part 3 of Article 77 has been deleted under Law No. 79-VIII of 28 December 2014}

4. The Verkhovna Rada of the Autonomous Republic of Crimea, regional, city, district, settlement, village councils, when approving the relevant budgets, shall take into account as a matter of priority the need for funds for salaries of employees at budgetary institutions in accordance with the legislation of Ukraine; for settlements for electricity and heat, water supply, sewerage, natural gas and communication services consumed by budgetary institutions.

{Part 4 of Article 77 as amended by Law No. 1081-IX of 15 December 2020}

{Part 5 of Article 77 has been deleted under Law No. 176-VIII of 10 February 2015}

6. The Verkhovna Rada of the Autonomous Republic of Crimea, regional, district, city, settlement, village councils shall take into account the amounts of inter-budget transfers transferred in accordance with part three, Article 93 of this Code when approving the relevant budgets.

{Article 77 has been supplemented with part 6 under Law No. 1081-IX of 15 December 2020}

Article 78. Implementation of local budgets

1. The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of the relevant local councils shall ensure the implementation of the relevant local budgets. Local financial authorities carry out the general arrangement and management for the implementation of the relevant local budget, coordinate the activities of participants in the budget process on budget implementation.

{Part one of Article 78as amended by Laws No. 914-VIII of 24 December 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

2. Treasury servicing of local budgets is carried out by the bodies of the Treasury of Ukraine in accordance with Article 43 of this Code.

{Paragraph one, part 2 of Article 78 as amended by Law No. 5463-VI of 16 October 2012}

The Treasury of Ukraine keeps records of all revenues belonging to local budgets, and refunds (transfers) funds erroneously or excessively credited to the budget upon submission (conclusion) of the bodies controlling the collection of budget revenues, agreed with the relevant local financial authorities.

{Paragraph 2, part 2 of Article 78as amended by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

The transfer between the types of revenues and budgets of funds erroneously and/or excessively credited to the local budgets through a single account is carried out by the Treasury of Ukraine upon the conclusion of tax authorities submitted on the date of formation of the register of payments from a single account according to the Tax Code of Ukraine.

{Part 2 of Article 77 has been supplemented with a new paragraph under Law No. 1081-IX of 15 December 2020}

According to the decision of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council in the implementation of local budgets maintenance of budget funds in terms of development budget and own revenues of budgetary institutions may be carried out by institutions of public sector banks.

{Part 2 of Article 78 has been supplemented with paragraph under Law No. 79-VIII of 28 December 2014}

The procedure for servicing local budgets in terms of development budget and own revenues of budgetary institutions in public sector banks, as well as the peculiarities of accounting for local budgets and reporting on local budgets for such funds are determined by the Cabinet of Ministers of Ukraine in agreement with the National Bank of Ukraine.

{Part 2 of Article 78 has been supplemented with paragraph under Law No. 79-VIII of 28 December 2014}

3. The local budget is executed according to the schedule approved by the head of the local financial body. Prior to the approval of the local budget description, the head of the local financial body shall approve the temporary local budget description for the relevant period. The head of the local financial body ensures compliance of the local budget description with the established budget purpose during the budget period.

4. The local financial body with the participation of the bodies controlling the collection of budget revenues,, shall forecast and analyze the revenues of the respective budget in the process of the local budget implementation by revenues.

5. Taxes and fees and other revenues of the local budget shall be recognised as credited to the local budget from the date of crediting to the single treasury account and accounts opened in public sector banks in accordance with part two of this article and cannot be accumulated on the accounts of the bodies that control budget levy revenues collection.

{Paragraph one, part 5 of Article 78 as amended by Law No. 79-VIII of 28 December 2014}

Bodies that control budget levy revenues collection ensure timely and full receipt of taxes and fees and other revenues of local budgets in accordance with the legislation, as well as exchange relevant information with local governments in the manner prescribed by the Cabinet of Ministers of Ukraine.

{Paragraph 2, part 5 of Article 78 as amended by Law No. 1081-IX of 15 December 2020}

6. Local budgets implementation by expenditures and crediting shall be carried out in accordance with Articles 46-51 of this Code.

Bodies of the Treasury of Ukraine carry out operations on execution of payment orders from managers of budgetary funds executed in accordance with the requirements of the legislation, based on the supporting documents in accordance with budget commitments and available budget allocations for local budget expenditures (within five operational days from the date of making a payment subject to the execution of revenues of the consolidated budget of Ukraine).

{Part 6 of Article 78 has been supplemented with paragraph 2 under Law No. 79-VIII of 28 December 2014}

7. The decision to amend the decision on the local budget is made by the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council based on the official conclusion of the local financial body on over-fulfilment or under-fulfilment of the revenue part of the general fund, on the amount of balance of general and special funds (except for own receipts of budgetary institutions) in the corresponding budget. The fact of over-fulfilment for the revenue part of the general fund in the local budget is recognised based on the results of the first half and subsequent reporting periods from the beginning of the current budget period based on official conclusions of the local financial body provided that the revenues of the general fund of the local budget (excluding intergovernmental transfers), taken into account in the description of the local budget for the relevant period, not less than 5 per cent. The fact of under-receipt of revenues of the general fund in the local budget is recognised based on the official conclusion of the local financial body based on the quarterly report in case of under-receipt of revenues of the general fund of the local budget, taking into account in the description of the local budget for the relevant period, by more than 15 per cent.

{Part 7 of Article 78 as amended by Laws No. 1789-VIII of 20 December 2016, No. 1081-IX of 15 December 2020}

8. Decisions on amendments to the decision on the local budget may be made by the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council, taking into account the provisions of Article 52 of this Code, in case of necessary redistribution of budgetary allocations between the key spending units (in the presence of the corresponding substantiation) shall be made and in other cases provided by this Code.

9. Accounting for the implementation of local budgets and the procedure for closing the accounts of local budgets after the end of the budget period shall be carried out taking into account the provisions of Articles 56 and 57 of this Code.

10. After the entry into force of the Law on the State Budget of Ukraine, public authorities and their officials are prohibited from making decisions leading to additional expenditures of local budgets, without determining the sources of funds allocated by the state to ensure these expenditures.

Article 79. Features of the revenues and expenditures formation of the local budget in case of late decision-making on the local budget

1. If no decision on the local budget has been made before the beginning of the new budget period, the Council of Ministers of the Autonomous Republic of Crimea, local state administration or executive body of the local council shall have the right to spend the local budget expenditures only for the purposes specified in the decision on the local budget for the previous budget period and simultaneously provided in the draft decision on the local budget for the next budget period, approved by the Council of Ministers of the Autonomous Republic of Crimea, local state administration or executive body of the local council and submitted to the Verkhovna Rada of the Autonomous Republic of Crimea or respective local council. At the same time, the monthly budget allocations of the local budget may not exceed 1/12 of the budget allocations established by the decision on the local budget for the previous budget period (except for the cases provided for in part six, Article 16 and part four, Article 23 of this Code, as well as taking into account the need for protected local budget expenditures).

{Part one of Article 79 as amended by Law No. 176-VIII of 10 February 2015}

2. It is prohibited to make capital expenditures and provide loans from the budget (except in cases related to the allocation of funds from the reserve fund of the budget and expenditures from transfers from the state budget to local budgets), as well as to make local borrowings and provide local guarantees until the decision on the local budget for the current budget period.

{Part 2 of Article 79 as amended by Law No. 176-VIII of 10 February 2015}

3. In case of untimely decision-making on the local budget, the norms of this article and the law on the State Budget of Ukraine for the relevant budget period shall be applied in the formation of revenues and expenditures of the local budget (in case of untimely entry into force of such a law – the rules of clauses 3-5, part 2, Article 41 of this Code).

{Part 3 of Article 79 as amended by Law No. 176-VIII of 10 February 2015}

Article 80. Reporting on the implementation of local budgets

1. Reporting on the execution of local budgets shall be determined in accordance with the requirements established for reporting on the execution of the State Budget of Ukraine in Articles 58-61 of this Code.

2. The Treasury of Ukraine shall compile and submit to the relevant local financial authorities reports on the implementation of local budgets in the prescribed forms. Consolidated indicators of reporting on budget implementation are simultaneously submitted by the Treasury of Ukraine to the executive body of the Autonomous Republic of Crimea for Finance, financial bodies of local state administrations and executive bodies of relevant local councils under the conditions provided for in part one of this article.

{Part 2 of Article 80 as amended by Law No. 5463-VI of 16 October 2012}

3. The bodies that control budget levy revenues collection shall submit to the local financial authorities the relevant reports provided for in part three, Article 59 and part three, Article 60 of this Code.

4. Quarterly and annual reports on local budget execution shall be submitted to the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council by the Council of Ministers of the Autonomous Republic of Crimea, local state administration, executive body of the relevant local council within two months after the budget period. The annual report is audited by the Accounting Chamber of the Verkhovna Rada of the Autonomous Republic of Crimea (on the use of budget funds of the Autonomous Republic of Crimea), the Budget Commission of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council, then the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local councils approve the annual report on budget execution or make other decisions in this regard.

{Part 4 of Article 80 as amended by Law No. 1081-IX of 15 December 2020}

SECTION IV.
INTERBUDGETARY RELATIONS

Chapter 13. GENERAL PROVISIONS

Article 81. Concept and purpose of regulating intergovernmental relations

1. Inter-budgetary relations means relations between the state, the Autonomous Republic of Crimea and territorial communities to provide the relevant budgets with financial resources necessary to perform the functions provided by the Constitution of Ukraine and the laws of Ukraine.

2. The purpose of regulating inter-budgetary relations is to ensure compliance of the powers to implement expenditures fixed by law on budgets, and financial resources that should ensure the implementation of these powers.

Article 82. Types of budget expenditures

1. Budget expenditures are divided into:

1) expenditures for ensuring the constitutional order, state integrity and sovereignty, independent judiciary, as well as other expenditures provided for by this Code, which may not be transferred for execution to the Autonomous Republic of Crimea and local self-government;

2) expenditures determined by the functions of the state and can be transferred for implementation to the Autonomous Republic of Crimea and local self-government in order to ensure their most effective implementation based on the principle of subsidiarity;

3) expenditures for the implementation of the rights and obligations of the Autonomous Republic of Crimea and local self-government, which have a local character and are determined by the laws of Ukraine.

Article 83. Sources of budget expenditures

1. Expenditures specified in clause 1, part one, Article 82 of this Code shall be made at the expense of the State Budget of Ukraine.

2. Expenditures specified in clauses 2 and 3, part one, Article 82 of this Code shall be made at the expense of local budgets, including transfers from the State Budget of Ukraine.

Article 84. Ensuring the implementation of expenditures

1. The relevant public authorities shall ensure the implementation of expenditures specified in clause 1, part one, Article 82 of this Code.

2. The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of the relevant local councils shall ensure the implementation of expenditures specified in clauses 2 and 3, part one, Article 82 of this Code.

{Part 2 of Article 84 as amended by Laws No. 914-VIII of 24 December 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

Article 85. Transfer by the state of the right to make expenditures

1. The state may transfer to the Council of Ministers of the Autonomous Republic of Crimea or local governments the right to incur expenditures only subject to the appropriate transfer of financial resources in the form of national taxes and fees or their shares, as well as transfers from the State Budget of Ukraine.

2. The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils shall ensure the implementation of expenditures specified in clauses 2 and 3, part one, Article 82 of this Code from the relevant local budgets in compliance with the distribution of these expenditures budgets, defined by Articles 89-91 of this Code and the law on the State Budget of Ukraine. It is prohibited to plan and implement expenditures not referred to local budgets by this Code, as well as to make expenditures for the maintenance of budgetary institutions from different budgets during the budget period, except when such expenditures are made by the relevant local council at the expense of budget funds or over-fulfilment of the revenue part of the general fund of the local budget in the absence of overdue accounts payable of such budget in protected items of expenditure on the last reporting date preceding expenditure planning or by decision of the Cabinet of Ministers of Ukraine. Such expenditures are made by providing an intergovernmental transfer from the relevant local budget.

{Part 2 of Article 85as amended by Laws No. 5428-VI of 16 October 2012, No. 914-VIII of 24 December 2015, No. 907-IX of 17 September 2020 – enters into force on 1 January 2021, No. 1081-IX of 15 December 2020}

3. Goods (works, services) purchased by the key spending unit (local budgets) at the expense of expenditures on centralised activities in accordance with programme documents of economic and social development, state target programmes, may be transferred to budgetary institutions withheld from other local budgets.

These centralised measures are carried out in compliance with the following requirements:

establishment of criteria for determining the justification of the need for relevant goods (works, services) by the key spending unit (local budgets managers);

determination of the need for goods (works, services) by budgetary institutions in accordance with the established criteria;

reflection of budgetary institutions of operations on acquisition and transfer of such goods (works, services) in the accounting and reporting.

Article 86. Criteria for differentiating the types of expenditures between local budgets

1. Differentiation of types of expenditures defined in clauses 2 and 3, part one, Article 82 of this Code between local budgets is based on the principle of subsidiarity, taking into account the criteria of completeness of public services and bringing them closer to the direct consumer. According to these criteria, the types of expenditures are divided into the following groups:

1) the first group – expenditures for the operation of budgetary institutions and the implementation of measures providing the necessary priority of public services and which are located closest to consumers;

2) the second group – expenditures on the functioning of budgetary institutions and the implementation of measures ensuring the provision of basic public services for all citizens of Ukraine;

3) the third group – expenditures for the operation of budgetary institutions and the implementation of measures providing public services for certain categories of citizens, or the implementation of programmes needed in all regions of Ukraine.

{Part one of Article 86 as amended by Law No. 2646-VIII of 06 December 2018}

2. Expenditures of the first group are made from local government budgets.

{Part 2 of Article 86 as amended by Law No. 176-VIII of 10 February 2015; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

3. Expenditures of the second group are made from budgets of local government, as well as regional budgets.

{Part 3 of Article 86 as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

4. Expenditures of the third group are carried out from the budget of the Autonomous Republic of Crimea and regional budgets.

5. Expenditures of all three groups are made from the budgets of the cities of Kyiv and Sevastopol.

Chapter 14.  DISTRIBUTION OF EXPENDITURE BETWEEN BUDGETS

Article 87. Expenditures made from the State Budget of Ukraine

1. Expenditures made from the State Budget of Ukraine (taking into account the features specified in clause 5, part two, Article 67-1 of this Code) include expenditures on:

{Paragraph one, part 1 of Article 87 as amended by Law No. 1210-VII of 15 April 2014}

1) public administration:

a) the legislature;

b) executive power;

c) the President of Ukraine;

2) the judiciary;

3) international activities;

4) scientific and scientific-technical activities

{Clause 4, part 1 of Article 87as amended by Laws No. 79-VIII of 28 December 2014, No. 176-VIII of 10 February 2015; as revised by Law No. 293-IX of 14 November 2019}

5) national defence (except for measures and works on local significance mobilisation training);

6) law enforcement activities, state security and civil protection of the population and territories (except for the measures specified in clause 16, part one, Article 91 of this Code);

6-1) ensuring the functioning of institutions and establishments of the Armed Forces of Ukraine, other military formations, law enforcement agencies, the Security Service of Ukraine, and civil defence bodies formed in accordance with the laws of Ukraine;

{Part 1, Article 87 has been supplemented with paragraph 6-1 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

7) education:

a) general secondary education:

institutions of specialised education: art, sports, military (naval, military-sports), scientific lyceums, lyceums with enhanced military-physical training of state property according to the list determined by the Cabinet of Ministers of Ukraine;

{Paragraph 2, sub-clause "а", clause 7, part 1 of Article 87 as revised by LawNo. 1081-IX of 15 December 2020}

{Paragraph 3, sub-clause "а", clause 7, part 1 of Article 87 has been deleted under Law No. 1081-IX of 15 December 2020}

{Sub-clause "a", clause 7, part 1 of Article 87 as amended by Law No. 79-VIII of 28 December 2014; as revised by Laws No. 212-VIII of 02 March 2015, No. 293-IX of 14 November 2019}

b) professional (vocational) education (for the payment of training services on the terms of the state order in institutions of vocational (vocational) education, social rehabilitation and adaptation of state property, as well as for professions of national importance, the list of which is approved by the Cabinet of Ministers of Ukraine);

{Sub-clause "b", clause 7, part 1 of Article 87as amended by Laws No. 79-VIII of 28 December 2014, No. 1789-VIII of 20 December 2016, No. 2233-VIII of 07 December 2017; as revised by LawNo. 293-IX of 14 November 2019}

c) higher education (for the payment of training services, scientific and scientific-pedagogical staff on the terms of the state order in higher education institutions of state and private property, the cost of educational services which is set taking into account the legislation on indicative cost) and professional higher education (for payment training services for specialists on the terms of the state order by structural subdivisions and separate structural subdivisions of higher education institutions of state ownership that do not have the status of a legal entity);

{Sub-clause "c", clause 7, part 1 of Article 87 as amended by Law No. 79-VIII of 28 December 2014 – the change enters into force on 1 January 2018, see Paragraph 2, clause 1, Section II of Law No. 79-VIII of 28 December 2014; as revised by Law No. 293-IX of 14 November 2019}

d) postgraduate education (to pay for professional development and retraining services on the terms of the state order);

{Sub-clause "d", clause 7, part 1 of Article 87 as amended by Law No. 293-IX of 14 November 2019}

e) out-of-school education institutions and out-of-school activities with children in accordance with the list approved by the Cabinet of Ministers of Ukraine;

{Sub-clause "e", clause 7, part 1 of Article 87 as amended by Law No. 293-IX of 14 November 2019}

e) other institutions and activities in the field of education ensuring the performance of national functions, according to the list approved by the Cabinet of Ministers of Ukraine;

8) health care:

a) primary health care, outpatient and inpatient care (multidisciplinary hospitals and clinics that perform specific national functions, according to the list approved by the Cabinet of Ministers of Ukraine);

b) specialised, highly specialised outpatient and inpatient care (clinics of research institutes, specialised hospitals, centers, leprosariums, hospitals for people with disabilities due to war, specialised clinics, specialised dental clinics according to the list approved by the Ministry of Ukraine);

{Sub-clause "b", clause 8, part 1 of Article 87as amended by Laws No. 79-VIII of 28 December 2014, No. 2233-VIII of 07 December 2017}

c) sanatorium and rehabilitation assistance (national sanatoriums for patients with tuberculosis, national specialised sanatoriums for children and adolescents, specialised sanatoriums for war veterans, persons covered by the laws of Ukraine "On the Status of War Veterans, Guarantees of Their Social Protection", "On Victims of Nazi Persecution ", and persons with disabilities, national rehabilitation institutions and complexes for persons with disabilities in accordance with the list approved by the Cabinet of Ministers of Ukraine);

d) sanitary and epidemiological surveillance (labouratory centers, measures to combat epidemics);

{Sub-clause "d", clause 8, part 1 of Article 87 as amended by Law No. 212-VIII of 02 March 2015}

e) other programmes in the field of health care that ensure the performance of national functions, according to the list approved by the Cabinet of Ministers of Ukraine;

e) primary medical care, except for the costs of utilities and energy by public health facilities;

{Clause, part 1 of Article 87 has been supplemented with sub-clause "e" under Law No. 2233-VIII of 07 December 2017}

f) public programmes of public health and measures to combat epidemics;

{Clause, part 1 of Article 87 has been supplemented with sub-clause "f" under Law No. 2233-VIII of 07 December 2017}

g) state programmes for the development and support of state-owned health care facilities, according to the list approved by the Cabinet of Ministers of Ukraine;

{Clause, part 1 of Article 87 has been supplemented with sub-clause "g" under Law No. 2233-VIII of 07 December 2017}

h) the programme of state guarantees related to medical care for the population;

{Clause 8, part 1 of Article 87 has been supplemented with sub-clause "h" under Law No. 2233-VIII of 07 December 2017}

9) social protection and social security:

a) payment of pensions to servicemen of the private, sergeant and non-commissioned officer of conscript service and members of their families, pensions to servicemen and persons of chief and rank and file of internal affairs bodies, other persons specified by law; payment of insurance premiums to the Pension Fund of Ukraine for certain categories of persons provided by law; payment of surcharges, allowances, increases to pensions, supplementary pensions, pensions for special services to Ukraine established by law, state social assistance for the care of persons specified in clauses 1-3, part one, Article 7 of the Law of Ukraine "On State Social Assistance to Persons Not have the right to a pension and persons with disabilities ", as well as to cover the difference between the pension calculated in accordance with the first and third paragraphs, part one, part three, Article 28 of the Law of Ukraine" On Compulsory State Pension Insurance" and the amount of pension, calculated in accordance with Article 27 of the Law of Ukraine "On Compulsory State Pension Insurance";

{Sub-clause "a", clause 9, part 1 of Article 87 as amended by Law No. 2150-VIII of 03 October 2017}

b) state social assistance programmes (financial assistance to persons recognised as refugees or persons in need of additional protection and persons granted temporary protection; compensation for medicines; prosthetics programme; programmes and measures for social protection of persons with disabilities, including programmes and measures of the Fund for Social Protection of Persons with Disabilities, compensation for damages caused to citizens, measures related to the return to Ukraine of the Crimean Tatar people and persons of other nationalities who were illegally deported from Ukraine, and accommodation of foreigners and stateless persons illegally staying on the territory of Ukraine, annual one-time financial assistance to war veterans and victims of Nazi persecution, lifelong state scholarships, funds transferred to the funds of compulsory state social insurance, social protection programmes for citizens affected by the Chornobyl disaster, other types of targeted financial assistance, by law);

{Sub-clause "b", clause 9, part 1 of Article 87as amended by Laws No. 5290-VI of 18 September 2012, No. 2233-VIII of 07 December 2017, No. 1081-IX of 15 December 2020}

c) state support of public associations of persons with disabilities and veterans for the implementation of national programmes (projects, activities) in accordance with the procedure established by the Cabinet of Ministers of Ukraine;

{Sub-clause "c", clause 9, part 1 of Article 87 as amended by Law No. 1789-VIII of 20 December 2016; as revised by LawNo. 2621-VIII of 22 November 2018}

d) state programmes and activities for children, youth, women, families;

e) state support of youth and children's public organisations for the implementation of national programmes and activities for children, youth, women, families in accordance with the list approved by the Cabinet of Ministers of Ukraine;

e) state programmes supporting the construction (reconstruction) of housing for certain categories of citizens;

f) operation of state rehabilitation institutions for persons with disabilities, children with disabilities belonging to the sphere of management of the central executive body, which implements state policy in the field of social protection, in the manner prescribed by the Cabinet of Ministers of Ukraine;

{Sub-clause "f", clause 9, part 1 of Article 87 as revised by LawNo. 1081-IX of 15 December 2020}

g) other programmes in the field of social protection and social security ensuring the performance of national functions, according to the list approved by the Cabinet of Ministers of Ukraine;

h) compensation of the deficit of the Pension Fund of Ukraine to finance the payment of pensions in the solidarity system of compulsory state pension insurance (excess of expenditures over income, including taking into account the reserve of the Pension Fund of Ukraine);

{Clause 9, part 1 of Article 87 has been supplemented with sub-clause "h" under Law No. 3668-VI of 08 July 2011; as revised by Law No. 2150-VIII of 03 October 2017}

i) state support of public associations for the implementation of measures for national-patriotic education;

{Clause 9, part 1 of Article 87 has been supplemented with sub-clause "i" under Law No. 1789-VIII of 20 December 2016}

j) housing subsidies to the population and benefits for housing and communal services, purchase of solid and liquid stove fuel, liquefied gas to certain categories of citizens, provided to: war veterans; persons covered by the Law of Ukraine "On the status of war veterans, guarantees of their social protection"; persons who have special merits before the Motherland; widows (widowers) and parents of deceased (deceased) persons who have special merits before the Motherland; affected participants of the Revolution of Dignity; persons who have special labour merits before the Motherland; widows (widowers) and parents of deceased (deceased) persons who have special labour merits before the Motherland; victims of Nazi persecution; veterans of military service; veterans of internal affairs bodies; veterans of the National Police; veterans of the tax police; veterans of the state fire service; veterans of the State Penitentiary Service; veterans of the civil protection service; veterans of the State Service for Special Communications and Information Protection of Ukraine; widows (widows) of deceased (deceased) military service veterans, veterans of internal affairs bodies, veterans of the National Police, veterans of the tax police, veterans of the State Fire Service, veterans of the State Penitentiary Service, veterans of the Civil Defense Service and veterans of the State Special Communications Service and protection of information of Ukraine; discharged from service due to age, illness or years of service to servicemen of the Security Service of Ukraine; persons dismissed from the civil protection service due to age, illness or years of service, and who became persons with disabilities in the line of duty; discharged from military service to persons who became persons with disabilities during military service; parents and family members of servicemen, servicemen of the State Service for Special Communications and Information Protection of Ukraine who were killed in action (died) or went missing during military service; parents and family members of members of the rank and file and senior staff of the Civil Defense Service who were killed in action (died) or went missing in the line of duty; rehabilitated citizens who have become disabled as a result of repression or are retired; deportees who have returned to Ukraine for permanent residence; citizens affected by the Chornobyl disaster; wives (husbands) and guardians (at the time of guardianship) of children of deceased citizens whose death is related to the Chernobyl disaster; pensioners from among plant protection specialists in accordance with part four, Article 20 of the Law of Ukraine "On Plant Protection"; citizens in accordance with paragraph "j", part one, Article 77 of the Fundamentals of Legislation of Ukraine on Health, part five, Article 29 of the Law of Ukraine "On Culture", part two, Article 30 of the Law of Ukraine "On Libraries and Librarianship", paragraph ten, part two, Article 28 of the Law of Ukraine "On Museums and Museum Affairs", paragraph one, part three, Article 57 of the Law of Ukraine "On Education"; children of war; large families, family-type orphanages and foster families in which three or more children live for at least a year, as well as families (except large families) in which three or more children live for at least a year, including those under guardianship or trusteeship; delivery to citizens of notifications of provision (non-provision), refusal to assign a housing subsidy.

Marginal indicators of cost and minimum norms of solid and liquid furnace household fuel and liquefied gas, on the basis of which benefits and housing subsidies are provided to the population, are determined by the Cabinet of Ministers of Ukraine;

{Clause 9, part 1 of Article 87 has been supplemented with sub-clause "i" under Law No. 293-IX of 14 November 2019}

i) assistance to families with children, low-income families, persons with disabilities from childhood, children with disabilities, temporary state assistance to children, assistance in caring for persons with disabilities of group I or II due to mental disorder, state social assistance to persons who do not have the right to a pension, and persons with disabilities, state social assistance for care (except for state social assistance for care of persons specified in clauses 1-3, Article 7 of the Law of Ukraine "On state social assistance to persons not entitled to pension and persons with disability"), monthly compensation payment to an unemployed able-bodied person caring for a person with a group I disability, as well as for a person who has reached the age of 80, temporary state social assistance to an unemployed person who has reached general retirement age for pension payment, payment of state social assistance for orphans and children deprived of parental care in family orphanages type and foster families, financial support for foster parents and foster parents for the provision of social services in family-type orphanages and foster families on the principle of "money follows the child", payment for child care services and social assistance for the maintenance of the child in the family of the foster parent, support of small group houses;

{Clause 9, part 1 of Article 87 has been supplemented with sub-clause "j" under Law No. 293-IX of 14 November 2019}

10) culture and art:

a) state cultural and educational programmes (national museums, national and state libraries, reserves, national and state cultural and educational centres, international cultural relations, state cultural and educational events, state support of national theatres, artistic groups and their directorates, concert, national and state circus organisations of the state form of ownership, cultural and artistic events of national creative unions) according to the list approved by the Cabinet of Ministers of Ukraine;

{Sub-clause "a", clause 10, part 1 of Article 87 as revised by LawNo. 79-VIII of 28 December 2014; as amended by Law No. 1789-VIII of 20 December 2016}

{Sub-clause "b", clause 10, part 1 of Article 87 has been deleted under Law No. 79-VIII of 28 December 2014}

{Sub-clause "c", clause 10, part 1 of Article 87 has been deleted under Law No. 79-VIII of 28 December 2014}

d) state support of cinematography;

{Sub-clause "d", clause 10, part 1 of Article 87 as revised by Laws No. 79-VIII of 28 December 2014, No. 76-IX of 12 September 2019}

e) state archives and insurance fund of documentation;

{Sub-clause "e", clause 10, part 1 of Article 87 as revised by LawNo. 79-VIII of 28 December 2014}

11) programmes supporting national and state television and radio companies, public television and radio broadcasting, the press, book publishing, state news agencies;

{Clause 11, part 1 of Article 87 as revised by Law No. 79-VIII of 28 December 2014}

12) physical culture and sports:

a) state programmes for the development of physical culture and sports (ensuring the activities of national teams, holding sporting events of national and international level, training and participation of national teams in international competitions in Olympic and non-Olympic sports, including the Olympic Games, European Games , Youth Olympic Games, World Games in non-Olympic sports, ensuring the activities of physical culture and sports institutions of all-Ukrainian level, financial support of Olympic training bases and all-Ukrainian public associations of physical culture and sports in accordance with the lists approved by the Cabinet of Ministers of Ukraine);

{Sub-clause "a", clause 12, part 1 of Article 87 as revised by LawNo. 79-VIII of 28 December 2014; as amended by Law No. 1081-IX of 15 December 2020}

b) state programmes for the development of physical culture, sports, physical culture and sports rehabilitation of persons with disabilities (centers of state importance for physical culture and sports of persons with disabilities, training camps, all-Ukrainian competitions in sports for persons with disabilities, physical culture and sports rehabilitation of persons with disabilities, maintenance of national sports teams for persons with disabilities, ensuring their training and participation in international competitions (including the Paralympic and Deaflympic Games), financial support of the Paralympic movement and bases of Paralympic and Deaflympic training according to the list approved The Cabinet of Ministers of Ukraine);

{Sub-clause "c", clause 12, part 1 of Article 87 has been deleted under Law No. 79-VIII of 28 December 2014}

13) state programmes to support regional development and priority sectors of the economy;

14) programmes of architectural monuments restoration, construction (creation) of significant sites and monuments of state importance;

15) state programmes for the development of transport, road management, communications, telecommunications and informatics;

16) state investment projects;

17) state programmes for liquidation of the Chornobyl catastrophe consequences, protection of the natural environment and nuclear safety, prevention of occurrence and liquidation of emergencies and consequences of natural disasters;

18) creation and replenishment of state reserves and reserves;

19) public debt service;

20) holding elections in cases provided by law and all-Ukrainian referendums;

{Clause 20-1, part 1 of Article 87 has been deleted under Law No. 79-VIII of 28 December 2014}

20-2) payments on government derivatives;

{Part 1, Article 87 has been supplemented with paragraph 20-2 under Law No. 700-VIII of 17 September 2015}

20-3) state financial support for political parties in the forms prescribed by law;

{Part 1, Article 87 has been supplemented with paragraph 20-3 under Law No. 732-VIII of 08 October 2015}

21) other programmes with exclusively state significance.

{Article 88 has been deleted under Law No. 914-VIII of 24 December 2015}

Article 89. Expenditures made from the budgets of rural, settlement, urban territorial communities

{Title of Article 89as amended by Laws No. 79-VIII of 28 December 2014, No. 907-IX of 17 September 2020; as revised by Law No. 1081-IX of 15 December 2020}

1. Expenditures made from the budgets of rural, settlement, urban territorial communities include expenditures on:

{Paragraph one, part 1 of Article 89 as amended by Law No. 907-IX of 17 September 2020; as revised by Law No. 1081-IX of 15 December 2020}

{Clause 1, part 1 of Article 89 has been deleted under Law No. 79-VIII of 28 December 2014}

2) education:

a) preschool education;

{Sub-clause "a", clause 2, part 1 of Article 89 as amended by Law No. 79-VIII of 28 December 2014}

b) general secondary education:

lyceums (founded by the city council with a population of more than 50 thousand), primary schools, gymnasiums;

{Paragraph 2, sub-clause "b", clause 2, part 1 of Article 89 as revised by Law No. 1081-IX of 15 December 2020}

interschool resource centers;

institutions of specialised education: art, sports, military (naval, military-sports), scientific lyceums, lyceums with enhanced military physical training (except for the institutions specified in subclause "a", clause 7, part one, Article 87 and in subclause "a", clause 2, part one, Article 90 of this Code);

{Paragraph 4, sub-clause "b", clause 2, part 1 of Article 89 as revised by Law No. 1081-IX of 15 December 2020}

orphanages, educational and rehabilitation centers (if at least 70 per cent of the number of students in orphanages, educational and rehabilitation centers falls on the territory of the relevant territorial community), inclusive resource centers;

{Paragraph 5, sub-clause "b", clause 2, part 1 of Article 89 as amended by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Sub-clause "b", clause 2, part 1 of Article 89as amended by Laws No. 5428-VI of 16 October 2012, No. 398-VII of 04 July 2013, No. 79-VIII of 28 December 2014, No. 212-VIII of 02 March 2015; as revised by Law No. 293-IX of 14 November 2019}

c) professional higher education (to pay for training services on the terms of a regional order in institutions of professional higher education of communal property, the founder of which is the city, village or town council);

{Sub-clause "c", clause 2, part 1 of Article 89as amended by Laws No. 1794-VIII of 20 December 2016, No. 2233-VIII of 07 December 2017, No. 2621-VIII of 22 November 2018; as revised by Law No. 293-IX of 14 November 2019; as amended by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

d) other state educational programmes;

e) higher education (for the payment of services related to the training of specialists, scientific and scientific-pedagogical personnel on the terms of a regional order in higher education institutions of municipal property, which founder is a city, village or settlement council);

{Sub-clause "e", clause 2, part 1 of Article 89as amended by Laws No. 293-IX of 14 November 2019, No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

e-1) postgraduate education (to pay for professional development and retraining services on the terms of the regional order);

{Clause 2, part 1 of Article 89 has been supplemented with sub-clause "e-1" under Law No. 293-IX of 14 November 2019}

f) out-of-school education;

{Sub-clause "f", clause 2, part 1 of Article 89 as amended by Law No. 79-VIII of 28 December 2014}

f) professional (vocational) education from the budgets of city territorial communities with the administrative centre in the city of regional significance – the regional centre (for the payment of training services on the terms of the regional order in professional (vocational) education and other educational institutions of state and/or municipal property located on the territory of the specified territorial communities);

{Clause 2, part 1 of Article 89 has been supplemented with sub-clause "е" under Law No. 914-VIII of 24 December 2015; as revised by Law No. 1789-VIII of 20 December 2016; as amended by Law No. 2233-VIII of 07 December 2017; as revised by Law No. 293-IX of 14 November 2019; as amended by Laws No. 907-IX of 17 September 2020 – enters into force on 1 January 2021, No. 1081-IX of 15 December 2020}

3) health care:

a) outpatient and inpatient care (general hospitals, specialised medical units, maternity hospitals, clinics and outpatient clinics, general dental clinics, district hospitals);

{Sub-clause "а", clause 3, part 1 of Article 89 as amended by Law No. 3612-VI of 07 July 2011 – the change is valid until 31 December 2014; as amended by Laws No. 5081-VI of 05 July 2012, No. 79-VIII of 28 December 2014; as revised by Laws No. 176-VIII of 10 February 2015, No. 212-VIII of 02 March 2015, No. 2233-VIII of 07 December 2017}

а-1) primary medical care (medical dispensaries, medical and obstetric points, primary medical (health care) centers and other health care facilities providing primary care);

{Clause 3, part 1 of Article 89 has been supplemented with sub-clause "a-1" under Law No. 2233-VIII of 07 December 2017}

b) health education programmes (health centers and health education activities);

{Sub-clause "b", clause 3, part 1 of Article 89 as amended by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

c) other state programmes of medical and sanitary care (territorial medical associations, centers of medical statistics, automobile enterprises of sanitary transport, other programmes and measures);

{Clause 3, part 1 of Article 89 has been supplemented with sub-clause "c" under Law No. 212-VIII of 02 March 2015}

d) payment for utilities and energy by communal health care institutions providing primary health care, local programmes for the development and support of communal health care institutions providing primary health care, and local programmes for providing medical services for primary health care to the population;

{Clause 3, part 1 of Article 89 has been supplemented with sub-clause "d" under Law No. 2233-VIII of 07 December 2017}

e) payment for utilities and energy of communal health care facilities owned by the respective territorial communities to ensure the provision of medical services under the state guarantees programme of medical care for the population;

{Clause 3, part 1 of Article 89 has been supplemented with sub-clause "e" under Law No. 2233-VIII of 07 December 2017; as amended by Law No. 907-IX of 17 September 2020; as revised by Law No. 1081-IX of 15 December 2020}

e) local programmes of development and support for municipal health care institutions, which belong to the respective territorial communities, local programmes of providing medical services to the population in excess of the amount provided by the state guarantees programme of medical care;

{Clause 3, part 1 of Article 89 has been supplemented with sub-clause "e" under Law No. 2233-VIII of 07 December 2017; as amended by Law No. 907-IX of 17 September 2020; as revised by Law No. 1081-IX of 15 December 2020}

f) local public health programmes;

{Clause 3, part 1 of Article 89 has been supplemented with sub-clause "f" under Law No. 2233-VIII of 07 December 2017}

4) social protection and social security:

a) state social security programmes: shelters for children, centers for social and psychological rehabilitation of children and social dormitories for orphans and children deprived of parental care (if at least 70 per cent of the number of children in these institutions falls on the territory of the relevant territorial communities), small group houses; territorial centers of social services (social services provision); social rehabilitation centers for children with disabilities; vocational rehabilitation centers for people with disabilities, family-type orphanages, foster families; compensation to individuals who provide social services to the elderly, people with disabilities, children with disabilities, patients who are unable to self-care and need outside help;

{Sub-clause "a", clause 4, part 1 of Article 89as amended by Laws No. 2621-VIII of 22 November 2018, No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Sub-clause "c", clause 4, part 1 of Article 89 has been deleted under Law No. 293-IX of 14 November 2019}

c) state programmes supporting the construction (reconstruction) of housing for certain categories of citizens;

d) rural, township and city programmes and measures for the implementation of state policy regarding children, youth, women, families, including the maintenance and programmes of social service centers;

{Sub-clause "d", clause 4, part 1 of Article 89 as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

5) state cultural-educational and theatrical-entertainment programmes (rural, settlement and city palaces and houses of culture, clubs, leisure centres, other club establishments and libraries; theatres, village, settlement, city libraries, museums, exhibitions, palaces and houses of culture, schools of aesthetic education of children, including institutions and establishments of communal property, which have been granted the status of academic, national, municipal property zoos);

{Clause 5, part 1 of Article 89 as revised by Law No. 79-VIII of 28 December 2014; as amended by Laws No. 914-VIII of 24 December 2015, No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

6) physical culture and sports: maintenance and training work of children's and youth sports schools of all types (except for schools of the Republican Autonomous Republic of Crimea and regional significance), events on physical culture and sports and financial support of local branches of all-Ukrainian public associations of physical culture and sports. sports orientation and sports facilities of local significance.

{Clause 6, part 1 of Article 89as amended by Laws No. 79-VIII of 28 December 2014, No. 1081-IX of 15 December 2020}

{Part one of Article 89 as amended by Law No. 79-VIII of 28 December 2014}

Article 90. Expenditures made from the budget of the Autonomous Republic of Crimea and regional budgets

{Title of Article 90 as amended by Law No. 79-VIII of 28 December 2014}

1. Expenditures made from the budget of the Autonomous Republic of Crimea and regional budgets include expenditures on:

{Paragraph one, part 1 of Article 90 as amended by Law No. 79-VIII of 28 December 2014}

1) public administration:

a) representative and executive power of the Autonomous Republic of Crimea;

{Sub-clause "b", clause 1, part 1 of Article 90 has been deleted under Law No. 79-VIII of 28 December 2014}

2) education:

a) general secondary education:

special schools, sanatorium schools, lyceums (founded by the regional council);

{Paragraph 2, sub-clause "a", clause 2, part 1 of Article 90 as revised by Law No. 1081-IX of 15 December 2020}

orphanages, training and rehabilitation centers (except for orphanages, training and rehabilitation centers defined in sub-clause "b", clause 2, part one, Article 89 of this Code);

state property institutions of general secondary education (except for the institutions specified in sub-clause "a", clause 7, part one, Article 87 of this Code);

specialised education institutions: art, sports, military (naval, military-sports), scientific lyceums, lyceums with enhanced military and physical training (if not less than 70 per cent of the number of students studying in the relevant educational institution are residents of settlements , located on the territory of the Autonomous Republic of Crimea or region (except for the relevant territorial community where such an institution is located);

{Sub-clause "a", clause 2, part 1 of Article 90as amended by Laws No. 1794-VIII of 20 December 2016, No. 2621-VIII of 22 November 2018; as revised by Laws No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

{Sub-clause "a-1", clause 2, part 1 of Article 90 has been deleted under Law No. 293-IX of 14 November 2019}

b) vocational (vocational) education (for the payment of training services on the terms of a regional order in vocational (vocational) education institutions and other educational institutions of state and / or communal property (except for the institutions specified in sub-clause "f", clause 2, parts one, Article 89 of this Code));

{Sub-clause "b", clause 2, part 1 of Article 90as amended by Laws No. 79-VIII of 28 December 2014, No. 212-VIII of 02 March 2015, No. 914-VIII of 24 December 2015, No. 1789-VIII of 20 December 2016, No. 2233-VIII of 07 December 2017; as revised by Law No. 293-IX of 14 November 2019}

б-1) professional higher education (for the payment of training services on the terms of state and/or regional order in institutions of professional higher education of state and/or municipal property (except for institutions specified in sub-clause "c", clause 2, part one, Article 89 of this Code);

{Clause 2, part 1 of Article 90 has been supplemented with sub-clause "b-1" under Law No. 293-IX of 14 November 2019}

c) higher education (for the payment of services related to the training of specialists, scientific and scientific-pedagogical staff on the terms of a regional order in institutions of higher education of communal property (except for the institutions specified in sub-clause "e", clause 2, part one, Article 89 of this Code);

{Sub-clause "c", clause 2, part 1 of Article 90 as revised by Laws No. 79-VIII of 28 December 2014, No. 293-IX of 14 November 2019}

d) postgraduate education (to pay for professional development and retraining services on the terms of the regional order);

{Sub-clause "d", clause 2, part 1 of Article 90 as amended by Law No. 3614-VI of 07 July 2011}

e) out-of-school education (activities and institutions of the national, state, republican Autonomous Republic of Crimea and regional significance in extracurricular work with children);

{Sub-clause "e", clause 2, part 1 of Article 90 as amended by Law No. 79-VIII of 28 December 2014}

e) other state educational programmes;

3) health care:

a) consultative outpatient and inpatient care (hospitals of the Republican Autonomous Republic of Crimea and regional significance), centers of emergency medical care and disaster medicine, emergency (ambulance) stations;

{Sub-clause "a", clause 3, part 1 of Article 90 as amended by Law No. 5081-VI of 05 July 2012}

b) specialised outpatient and inpatient care (specialised hospitals, clinics, including dental, centers, dispensaries, hospitals for war veterans, orphanages, blood transfusion stations);

{Sub-clause "b", clause 3, part 1 of Article 90 as amended by Law No. 79-VIII of 28 December 2014}

c) sanatorium-and-spa care (sanatoriums for patients with tuberculosis, sanatoriums for children and teenagers, sanatoriums for medical rehabilitation);

d) other state programmes of medical and sanitary care (medical and social expert commissions, forensic bureaus, medical statistics centers, territorial medical associations, sanitary transport enterprises, special medical supply bases, health centers and sanitary education measures, regional measures to implement state programmes, other programmes and activities);

{Sub-clause "d", clause 3, part 1 of Article 90 as amended by Law No. 212-VIII of 02 March 2015}

e) payment for utilities and energy of municipal health care facilities, which are objects of common property of territorial communities in villages, settlements, cities managed by regional councils, to ensure the provision of medical services under the programme of state guarantees of medical care;

{Clause 3, part 1 of Article 90 has been supplemented with sub-clause "e" under Law No. 2233-VIII of 07 December 2017; as revised by Law No. 1081-IX of 15 December 2020}

e) regional programmes of development and support for municipal health care institutions, which are objects of common property of territorial communities in villages, settlements, cities, managed by regional councils, and regional programmes of providing medical services to the population in excess of the programme of state guarantees of medical care for the population;

{Clause 3, part 1 of Article 90 has been supplemented with sub-clause "f" under Law No. 2233-VIII of 07 December 2017}

f) regional public health programmes;

{Clause 3, part 1 of Article 90 has been supplemented with sub-clause "g" under Law No. 2233-VIII of 07 December 2017}

g) other institutions and measures in the health care system (orphanages, blood service institutions, medical and social expert commissions, forensic bureau, special medical supply bases);

{Clause 3, part 1 of Article 90 has been supplemented with sub-clause "h" under Law No. 293-IX of 14 November 2019}

4) social protection and social security:

a) state programmes of social protection and social security: payment of compensation to the rehabilitated; orphanages; training and employment of persons with disabilities; nursing homes for the elderly and people with disabilities; orphanages for children with disabilities; centers for accrual and implementation of social benefits; shelters for children, centers for social and psychological rehabilitation of children and social dormitories for orphans and children deprived of parental care (except for the relevant shelters, centers and dormitories defined in subclause "a", clause 4, part one, Article 89 of this Code); preferential medical care for citizens affected by the Chornobyl disaster; compensation payments to persons with disabilities for gasoline (fuel), repairs, maintenance of vehicles and transport services, as well as for the installation of telephones for persons with disabilities of groups I and II; reimbursement of burial expenses of combatants and persons with disabilities as a result of the war; centers of social rehabilitation of children with disabilities, centers of professional rehabilitation of persons with disabilities;

{Sub-clause "a", clause 4, part 1 of Article 90 as amended by Law No. 79-VIII of 28 December 2014}

b) republican Autonomous Republic of Crimea and regional programmes and measures for implementation of state policy regarding children, youth, women, family, including maintenance and programmes of the republican Autonomous Republic of Crimea and regional centers of social services;

{Sub-clause "b", clause 4, part 1 of Article 90 as amended by Law No. 1081-IX of 15 December 2020}

c) other state social programmes;

5) culture and art:

a) state cultural and educational programmes (national, state, republican of the Autonomous Republic of Crimea and regional reserves, libraries, museums and exhibitions, including institutions and establishments of communal property, which obtained the status of national);

{Sub-clause "a", clause 5, part 1 of Article 90 as revised by LawNo. 79-VIII of 28 December 2014}

b) state theatre and entertainment programmes (philharmonics, artistic, musical groups and ensembles, theatres, concert and circus organisations, palaces, houses of culture, other institutions of national, state, republican Autonomous Republic of Crimea and regional significance, other institutions and events in the field of art, including institutions and establishments of communal property, which obtained the status of national);

{Sub-clause "b", clause 5, part 1 of Article 90 as revised by LawNo. 79-VIII of 28 December 2014}

c) other state cultural and artistic programmes;

6) physical culture and sports:

a) programmes for the development of physical culture and sports (maintenance and training of children's and youth sports schools of all types of the Republican Autonomous Republic of Crimea and regional significance (except for schools defined in sub-clause "b" of this clause), schools of higher sportsmanship, centres Olympic training, physical health centres of the Republican Autonomous Republic of Crimea and regional significance, regular sports teams of reserve sports, physical culture and sports activities of the Republican Autonomous Republic of Crimea and regional significance, including preparation of national teams of the region to participate in state competitions, financial support of the Republican Autonomous Republic of Crimea and regional centres of all-Ukrainian public associations of physical culture and sports orientation and sports facilities of the Republican Autonomous Republic of Crimea and regional significance);

{Sub-clause "a", clause 6, part 1 of Article 90 as amended by Law No. 1081-IX of 15 December 2020}

b) programmes for the development of physical culture, sports, physical culture and sports rehabilitation of persons with disabilities (centres of the Republican Autonomous Republic of Crimea and regional importance for the development of physical culture and sports for persons with disabilities, children's and youth sports schools for persons with disabilities of all types; on physical culture and sports rehabilitation of persons with disabilities, training camps and competitions of the Republican Autonomous Republic of Crimea and regional importance on physical culture and sports of persons with disabilities, preparation of national teams of the region to participate in state-level sports competitions);

{Clause 6, part 1 of Article 90 as amended by Law No. 79-VIII of 28 December 2014; as revised by Law No. 2011-VIII of 12 April 2017}

7) programmes of nature protection measures of local significance, projects of restructuring and liquidation of objects of enterprises of mining chemistry, underground iron ore mining, mercury production conservation, drainage complexes maintenance.

{Part 1, Article 90 has been supplemented with paragraph 7 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 914-VIII of 24 December 2015, No. 2233-VIII of 07 December 2017; as revised by Law No. 2621-VIII of 22 November 2018}

Article 91. Expenditures of local budgets that can be made from all local budgets

{Title of Article 91 as amended by Law No. 79-VIII of 28 December 2014}

1. Expenditures of local budgets, which can be carried out from all local budgets, include expenditures on:

1) local fire protection;

1-1) municipal formations for the public order protection;

{Part 1, Article 91 has been supplemented with paragraph 1-1 under Law No. 79-VIII of 28 December 2014}

2) local governments;

{Clause 2, part 1 of Article 91 as revised by Law No. 79-VIII of 28 December 2014}

3) social protection and social security:

a) programmes of local significance for children, youth, women, families, including for supporting activities of youth centers;

{Sub-clause "a", clause 3, part 1 of Article 91 as amended by Law No. 2233-VIII of 07 December 2017}

b) local programmes of social protection for certain categories of the population;

c) social protection programmes for low-income students of professional (vocational) education institutions;

{Sub-clause "c", clause 3, part 1 of Article 91 as amended by Law No. 293-IX of 14 November 2019}

d) registration centres and institutions of social protection for the homeless, centers of social adaptation of persons released from penitentiary institutions;

{Sub-clause "d", clause 3, part 1 of Article 91 as amended by Law No. 4318-VI of 12 January 2012}

e) compensation payments for travel privilege of certain categories of citizens;

f) compensation to individuals who provide social services to the elderly, persons with disabilities, children with disabilities, patients who are unable to self-care and need outside help;

f) providing financial support to public associations of veterans for the implementation of programmes (projects, activities) at the appropriate administrative-territorial level;

{Sub-clause "f", clause 3, part 1 of Article 91 as revised by LawNo. 2621-VIII of 22 November 2018}

{Clause 4, part 1 of Article 91 has been deleted under Law No. 79-VIII of 28 December 2014}

5) local programmes for the development of housing and communal services and settlements improvement;

6) cultural and artistic programmes of local significance;

{Clause 6, part 1 of Article 91 as amended by Law No. 79-VIII of 28 December 2014}

7) programmes supporting cinematography and mass media;

{Clause 7, part 1 of Article 91 as amended by Law No. 79-VIII of 28 December 2014}

8) local programmes for the development of physical culture and sports;

9) typical design, restoration and protection of architectural monuments;

{Clause 9, part 1 of Article 91 as amended by Law No. 79-VIII of 28 December 2014}

10) transport, road management:

a) regulation of prices (tariffs) for the carriage of passengers in passenger transport by the decision of the local executive body and local government body in accordance with the powers granted;

b) operation of the local significance road system (including works carried out by specialised installation and maintenance units);

c) construction, reconstruction, repair and maintenance of roads of local significance, streets and roads of communal property in settlements, as well as capital and current repair of streets and roads of settlements and other roads that are part of roads of state importance (as co-financing on a contractual basis );

{Sub-clause "c", clause 10, part 1 of Article 929 as amended by Laws No. 79-VIII of 28 December 2014, No. 491-VIII of 02 June 2015}

11) measures on organising sea rescue;

12) local debt service;

13) programmes of nature protection measures of local significance, measures of programmes in the field of housing and communal services for construction and reconstruction of water and sewage treatment plants, drinking water treatment, modernisation of heating systems, replacement of natural gas with alternative fuels, modernization and repair of elevators and reconstruction, reconstruction residential buildings, equipping the housing stock with household means of energy metering and water consumption, overhaul, reconstruction, construction of outdoor street lighting networks, overhaul of dormitories transferred to the ownership of local communities, introduction of energy-saving technologies;

{Clause 13, part 1 of Article 91 as revised by Law No. 79-VIII of 28 December 2014; as amended by Law No. 118-VIII of 15 January 2015}

14) municipal property management;

15) regulation of land relations;

16) measures in the field of protection of the population and territories from emergencies of man-caused and natural nature within the powers established by law;

17) measures and works on territorial defence and mobilisation training of local significance;

{Clause 17, part 1 of Article 91 as revised by Law No. 2621-VIII of 22 November 2018}

18) holding local elections in cases provided by law and republican Autonomous Republic of Crimea and local referendums;

19) membership fees to associations of local governments and their voluntary associations;

20) advanced training of local councils deputies and local self-government officials;

{Clause 20, part 1 of Article 91 as amended by Law No. 79-VIII of 28 December 2014}

{Clause 20-1, part 1 of Article 91 has been deleted under Law No. 79-VIII of 28 December 2014}

20-2) implementation of assistance programmes and grants of the European Union, governments of foreign states, international organisations, donor institutions;

{Part 1, Article 91 has been supplemented with paragraph 20-2 under Law No. 79-VIII of 28 December 2014; as revised by Law No. 2233-VIII of 07 December 2017}

20-3) programmes supporting the construction (reconstruction) of housing for certain categories of citizens;

{Part 1, Article 91 has been supplemented with paragraph 20-3 under Law No. 79-VIII of 28 December 2014}

20-4) benefits from communication services, other benefits provided by law, provided to war veterans; persons covered by the Law of Ukraine "On the status of war veterans, guarantees of their social protection"; persons who have special merits before the Motherland; widows (widowers) and parents of deceased (deceased) persons who have special merits before the Motherland; affected participants of the Revolution of Dignity; persons who have special labour merits before the Motherland; widows (widowers) and parents of deceased persons who have special labour merits before the Motherland; labour veterans; victims of Nazi persecution; veterans of military service; veterans of internal affairs bodies; veterans of the National Police; veterans of the tax police; veterans of the state fire service; veterans of the State Penitentiary Service; veterans of the civil protection service; veterans of the State Service for Special Communications and Information Protection of Ukraine; widows (widows) of deceased (deceased) military service veterans, veterans of internal affairs bodies, veterans of the National Police, veterans of the tax police, veterans of the State Fire Service, veterans of the State Penitentiary Service, veterans of the Civil Defense Service and veterans of the State Special Communications Service and protection of information of Ukraine; persons discharged from military service who became persons with disabilities during military service; persons with disabilities, children with disabilities and persons accompanying persons with disabilities of group I or children with disabilities (not more than one attendant); rehabilitated citizens who have become disabled as a result of repression or are retired; citizens affected by the Chornobyl disaster; wives (husbands) and guardians (at the time of guardianship) of children of deceased citizens whose death is related to the Chernobyl disaster; large families, family-type orphanages and foster families in which three or more children live for at least a year, as well as families (except large families) in which three or more children live for at least a year, including those under guardianship or trusteeship;

{Part 1, Article 91 has been supplemented with paragraph 20-4 under Law No. 1789-VIII of 20 December 2016;as amended by Laws No. 2233-VIII of 07 December 2017, No. 2621-VIII of 22 November 2018}

20-5) local programmes supporting the acquisition of professional (vocational), professional higher and higher education on the terms of a regional order in the relevant educational institutions;

{Part 1, Article 91 has been supplemented with paragraph 20-5 under Law No. 293-IX of 14 November 2019}

20-6) local programmes supporting automobile enterprises of sanitary transport;

{Part 1, Article 91 has been supplemented with paragraph 20-6 under Law No. 1081-IX of 15 December 2020}

21) other programmes related to the exercising their powers, approved by the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council in accordance with the law.

{Part one of Article 91 as amended by Law No. 79-VIII of 28 December 2014}

{Article 92 has been deleted under Law No. 79-VIII of 28 December 2014}

Article 93. Transfer of funds between local budgets for the implementation of local budget expenditures

{Title of Article 93 as amended by Law No. 79-VIII of 28 December 2014}

1. A local council may transfer funds for the implementation of certain expenditures of local budgets to another local council in the form of intergovernmental transfer to the relevant local budget, including if there are not enough budget institutions and other public property entities providing public services in the territorial community. , defined in clause 2, part one, Article 86 of this Code.

{Part one of Article 93 as revised by Laws No. 79-VIII of 28 December 2014, No. 837-VIII of 26 November 2015; as amended by Law No. 1081-IX of 15 December 2020}

{Part 2 of Article 93 has been deleted under Law No. 837-VIII of 26 November 2015}

3. The transfer of funds between local budgets is carried out based on the decisions of the relevant local councils adopted by each of the parties and the conclusion of the agreement.

{Part 3 of Article 93 as amended by Law No. 2233-VIII of 07 December 2017}

{Part four of Article 93 has been deleted under Law No. 79-VIII of 28 December 2014}

{Part 5 of Article 93 has been deleted under Law No. 1081-IX of 15 December 2020}

Chapter 15. {Chapter 15 has been deleted under Law No. 1081-IX of 15 December 2020}

Chapter 16. INTERBUDGETARY TRANSFERS

Article 96. Types of intergovernmental transfers

1. Intergovernmental transfers are divided into:

1) basic subsidy (transfer provided from the state budget to local budgets for horizontal equalisation of tax capacity of territories);

{Clause 1, part 1 of Article 96 as revised by Law No. 79-VIII of 28 December 2014}

2) subventions;

3) reverse subsidy (funds transferred to the state budget from local budgets for horizontal equalisation of tax capacity territories);

{Clause 3, part 1 of Article 96 as revised by Law No. 79-VIII of 28 December 2014}

4) additional subsidies.

Article 97. Transfers provided from the State Budget of Ukraine to local budgets

1. The State Budget of Ukraine may provide for the following transfers to local budgets:

1) basic subsidy;

{Clause 1, part 1 of Article 97 as revised by Law No. 79-VIII of 28 December 2014}

{Clause 2, part 1 of Article 97 has been deleted under Law No. 79-VIII of 28 December 2014}

3) subventions for the implementation of state social protection programmes;

4) additional subsidy to compensate for the loss of local budget revenues due to the provision of benefits established by the state;

{Clause 4, part 1 of Article 97 as amended by Law No. 79-VIII of 28 December 2014}

{Clause 4-1, part 1 of Article 97 has been deleted under Law No. 79-VIII of 28 December 2014}

4-2) additional subsidy for the implementation of expenditures transferred from the state budget for the maintenance of educational and health care institutions;

{Part 1, Article 97 has been supplemented with paragraph 4-2 under Law No. 2233-VIII of 07 December 2017}

5) subvention for the implementation of investment projects;

6) educational subvention;

{Clause 6, part 1 of Article 97 as amended by Law No. 3614-VI of 07 July 2011; as revised by Law No. 79-VIII of 28 December 2014}

6-1) subvention for the provision of state support to persons with special educational needs;

{Part 1, Article 97 has been supplemented with paragraph 6-1 under Law No. 2621-VIII of 22 November 2018}

{Clause 7, part 1 of Article 97 has been deleted under Law No. 914-VIII of 24 December 2015}

8) medical subvention;

{Clause, part 1 of Article 97 as revised by Law No. 79-VIII of 28 December 2014}

{Clause 9, part 1 of Article 97 has been deleted under Law No. 914-VIII of 24 December 2015}

10) a subvention to finance measures of socio-economic risk compensation for the population living in the territory of the surveillance zone;

{Clause, part 1 of Article 97 as revised by Law No. 79-VIII of 28 December 2014}

{Clause 11, part 1 of Article 97 has been deleted under Law No. 1081-IX of 15 December 2020}

11-1) subvention for financial support of construction, reconstruction, repair and maintenance of public roads of local significance, streets and roads of municipal property in settlements;

{Part 1, Article 97 has been supplemented with paragraph 11-1 under Law No. 1763-VIII of 17 November 2016}

12) other additional subsidies and other subventions.

{Clause, part 1 of Article 97 as revised by Law No. 79-VIII of 28 December 2014}

2. The procedure and conditions for providing subventions from the state budget to local budgets shall be determined by the Cabinet of Ministers of Ukraine.

The procedure and conditions for granting a subvention from the state budget to local budgets, which is first defined by the law on the State Budget of Ukraine, shall be approved by the Cabinet of Ministers of Ukraine no later than 30 days from the date of its entry into force.

{Procedure and conditions for granting a subvention: Resolutions of the Cabinet of Ministers of Ukraine No. 179 of 03 March 2020, No. 250 of 25 March 2020, No. 420 of 20 May 2020, No. 426 of 27 May 2020, No. 550 of 01 July 2020, No. 687 of 05 August 2020, No. 974 of 21 October 2020, No. 1043 of 04 November 2020, No. 1044 of 04 November 2020, No. 1045 of 04 November 2020, No. 1046 of 04 November 2020, No. 1047 of 04 November 2020, No. 1055 of 04 November 2020, No. 1058 of 04 November 2020, No. 1060 of 04 November 2020, No. 1061 of 04 November 2020, No. 1223 of 09 December 2020}

The distribution of additional subsidies between local budgets is carried out based on the criteria defined by the Cabinet of Ministers of Ukraine.

{Part 2 of Article 97 has been supplemented with paragraph 3 under Law No. 3614-VI of 07 July 2011}

3. The State Budget of Ukraine shall approve the amount of inter-budget transfers separately for each of the relevant local budgets, if there are grounds for granting and receiving the relevant inter-budget transfers.

{Part 3 of Article 97 as amended by Law No. 79-VIII of 28 December 2014}

{Part four of Article 97 has been deleted under Law No. 79-VIII of 28 December 2014}

Article 98. Horizontal equalisation of tax capacity for regional budgets

1. Horizontal equalisation of the tax capacity for regional budgets is carried out separately for the income tax of enterprises and personal income tax, taking into account the following parameters:

1) population;

2) receipt of corporate income tax, defined in clause 1-1, part one, Article 66 of this Code, for the last reporting budget period;

3) receipt of personal income tax, as defined in clause 1, part one, Article 66 of this Code, for the last reporting budget period;

4) tax capacity indices of the relevant regional budget, which are determined separately by the revenues of corporate income tax and personal income tax.

2. The tax capacity index of the relevant regional budget is a coefficient determining the level of tax capacity of such a budget compared to a similar average for all regional budgets of Ukraine per capita.

3. When implementing equalisation, the value of the tax capacity index for the relevant regional budget is taken into account.

If the index value is:

in the range of 0.9-1.1 – alignment is not carried out;

less than 0.9 – a basic subsidy is provided to the relevant regional budget in the amount of 80 per cent of the amount required to achieve the value of such an index of security for the relevant budget 0.9;

more than 1.1 – a reverse subsidy is transferred from the relevant regional budget in the amount of 50 per cent of the amount exceeding the value of such an index 1.1.

{Article 98 as amended by Laws No. 5428-VI of 16 October 2012, No. 1592-VII of 04 July 2014; as revised by Law No. 79-VIII of 28 December 2014}

Article 99. Horizontal equalisation of tax capacity for local government budgets, except for budgets of Kyiv and Sevastopol cities and districts in cities

{Title of Article 99as amended by Laws No. 837-VIII of 26 November 2015, No. 2233-VIII of 07 December 2017; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

1. Horizontal equalisation of tax capacity for local government budgets, except for the budgets of the cities of Kyiv and Sevastopol and districts in cities, is carried out taking into account the following parameters:

{Paragraph one, part 1 of Article 99 as amended by Law No. 837-VIII of 26 November 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

1) population;

2) receipt of personal income tax, as defined in clause 1, part one, Article 64 of this Code, for the last reporting budget period;

3) tax capacity index of the relevant budget.

{Part one of Article 99 as amended by Law No. 2233-VIII of 07 December 2017}

2. The tax capacity index is a coefficient determining the level of taxability of the local self-government budget in comparison with a similar average indicator for all budgets of local self-government in Ukraine (except for the budgets of cities in Kyiv and Sevastopol) per person.

{Part 2 of Article 99as amended by Laws No. 837-VIII of 26 November 2015, No. 2233-VIII of 07 December 2017; as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

3. When implementing equalisation, the value of the tax capacity index for the relevant budget is taken into account.

If the index value is:

in the range of 0.9-1.1 – alignment is not carried out;

less than 0.9 – a basic subsidy is provided to the relevant budget in the amount of 80 per cent of the amount required to achieve the value of such an index of security for the relevant budget 0.9;

more than 1.1 – a reverse subsidy is transferred from the relevant budget in the amount of 50 per cent of the amount exceeding the value of such an index 1.1.

{Article 99 as revised by Law No. 79-VIII of 28 December 2014}

Article 100. Index of local budget tax capacity

1. Local budget tax capacity indexes can not change and review more often than once a year, except for the following cases:

allocation of new or changes in the status of existing administrative-territorial units;

changes in the location of business entities – taxpayers;

changes in tax legislation.

The change in income tax revenues and personal income tax revenues for the relevant budget period should be confirmed by the collection bodies.

{Article 100 as revised by Law No. 79-VIII of 28 December 2014}

Article 101. Interbudgetary transfers between local budgets

{Part 1, Article 101 has been deleted under Law No. 79-VIII of 28 December 2014}

2. The Verkhovna Rada of the Autonomous Republic of Crimea and local councils may include the following types of intergovernmental transfers in relevant budgets:

1) subventions for the maintenance of common amenities or elimination of negative consequences related to the activities of common amenities;

{Paragraph 2, part 2 of Article 101 has been deleted under Law No. 79-VIII of 28 December 2014}

{Paragraph 3, part 2 of Article 101 has been deleted under Law No. 79-VIII of 28 December 2014}

4) subventions for investment projects, including construction or reconstruction of common amenities;

5) subsidies and other subventions.

{Paragraph 5, part 2 of Article 101 as amended by Law No. 79-VIII of 28 December 2014}

The terms for the subventions provision referred to in this part of the article are determined by the relevant agreement of the parties unless otherwise installed in this Code.

{Part 3 of Article 101 has been deleted under Law No. 79-VIII of 28 December 2014}

{Part four of Article 101 has been deleted under Law No. 79-VIII of 28 December 2014}

{Article 102 has been deleted under Law No. 293-IX of 14 November 2019}

Article 103. Additional subsidy to compensate local budget revenue losses as a result of tax privileges provided by the state

{Title of Article 103 as amended by Law No. 79-VIII of 28 December 2014}

1. Providing tax privileges reducing the local budgets revenues shall be accompanied by providing additional subsidies from the state budget to local budgets to compensate for relevant losses of local budget revenues.

{Part one of Article 103 as amended by Law No. 79-VIII of 28 December 2014}

{Article 103-1 has been deleted under Law No. 79-VIII of 28 December 2014}

Article 103-1. Subvention from the state budget to local budgets for financial support related to the construction, reconstruction, repair and maintenance of highways of general use of local significance, streets and roads in municipal property within settlements

1. Subvention from the state budget to local budgets for financial support related to the construction, reconstruction, repair and maintenance of general use highways of local significance, streets and roads in municipal property within settlements is provided at the expense of the sources of the formation of a special fund of the state budget specified in clause 1, part 2, Article 24-2 of this Code, taking into account the provisions of part four, Article 24-2 of this Code.

{Paragraph one, part 1 of Article 103-1 as amended by Law No. 1081-IX of 15 December 2020}

The Law on the State Budget of Ukraine approves the scope of the specified subvention separately for the budget of the Autonomous Republic of Crimea, regional budgets, budgets of cities of Kyiv and Sevastopol.

2. Subvention from the state budget to local budgets for financial support related to the construction, reconstruction, repair and maintenance of highways of general use of local significance, streets and roads in municipal property within settlements in the following way:

90 per cent of the total subventions are distributed among the corresponding local budgets (except for the budget of Kyiv), depending on the length of general use highways of local importance in the relevant administrative-territorial unit as of 1 January of the year preceding the planned. The above funds may be directed to the construction, reconstruction, repair and maintenance of streets and municipal services in settlements in the amount of no more than 20 per cent of such a subvention approved by the Law on the State Budget of Ukraine for the relevant local budget, as well as repayment and maintenance of local debt for local borrowings involved in the implementation of repair and construction works on general use highways of local importance and municipal property, in the amount of no more than 30 per cent of such a subvention approved by the Law on the State Budget of Ukraine for the relevant local budget. Amounts and directions of use for funds at the expense of such local borrowings are approved by the relevant regional state administration with subsequent agreement with the Verkhovna Rada Committee on Budget;

{Paragraph 2, part 2 of Article 103-1 as amended by Law No. 2621-VIII of 22 November 2018; as revised by Law No. 677-IX of 04 June 2020}

10 per cent of the total subvention is granted to the budget of Kyiv on financial support for the construction, reconstruction, repair and maintenance of streets and municipal services in Kyiv.

{Part 2 of Article 103-1 as revised by LawNo. 2233-VIII of 07 December 2017}

3. List of construction, reconstruction, capital and current average repair facilities of general use highways of local significance, streets and roads of municipal property in settlements, indicating the amount of budget funds for financial provision of such objects is approved by the Council of Ministers of the Autonomous Republic of Crimea, relevant regional state administration, Kyiv and Sevastopol city state administrations in agreement with the central executive body implementing state policy in the field of public road system.

{Part 3 of Article 103-1 as amended by Law No. 2233-VIII of 07 December 2017}

4. Subvention from the state budget to local budgets for financial support for the construction, reconstruction, repair and maintenance of general use highways of local importance, streets and roads of municipal property in settlements shall be recalculated at the expense of the actual revenues of the State Budget Fund, which are the subvention source.

{Article 103-1 has been included in the Code under Law No. 1763-VIII of 17 November 2016}

Article 103-2. Educational Subvention

1. Educational subvention is aimed at remuneration for pedagogical workers in the following types of educational institutions:

1) elementary schools, gymnasium (except for preschool units in these institutions), lyceum;

{Clause 1, part 1 of Article 103-2 as revised by Law No. 1081-IX of 15 December 2020}

2) special schools;

{Clause 2, part 1 of Article 103-2 as amended by Law No. 1081-IX of 15 December 2020}

3) specialised education establishments: artistic, sports, military (naval, military sports), scientific lyceums, lyceums with enhanced military-physical training;

{Clause 3, part 1 of Article 103-2 as revised by Law No. 1081-IX of 15 December 2020}

4) orphanages, educational and rehab centers, inclusive resource centers;

5) establishments of professional (vocational) education of state and municipal property in terms of providing expenditures for obtaining complete general secondary education;

6) establishments of the professional education before obtaining higher education and college of state and municipal property in order to provide expenditures for complete general secondary education.

{Part one of Article 103-2as amended by Laws No. 1789-VIII of 20 December 2016, No. 1794-VIII of 20 December 2016, No. 2233-VIII of 07 December 2017, No. 2621-VIII of 22 November 2018; as revised by Law No. 293-IX of 14 November 2019}

2. The Law on the State Budget of Ukraine approves the amount of educational subvention separately for the budget of the Autonomous Republic of Crimea, regional budgets and local self-government budgets.

{Part 2 of Article 103-2 as revised by LawNo. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

3. The educational subvention is distributed among the relevant budgets based on the formula, which is developed by the central executive body ensuring formation and implements of state policy in the field of education, and approved by the Cabinet of Ministers of Ukraine and shall take into account, in particular, the following parameters:

1) number of students of general secondary education institutions, students who are obtaining complete general secondary education in institutions of professional (vocational) education of state and municipal property, students who are obtaining complete general secondary education in the institutions of professional education and colleges of the state and municipal property, in urban and countryside, mountain settlements;

{Paragraph 2, part 3 of Article 103-2as amended by Laws No. 1789-VIII of 20 December 2016, No. 2621-VIII of 22 November 2018; as revised by Law No. 293-IX of 14 November 2019}

2) the estimated filling of classes;

{Clause 2, part 3 of Article 103-2 as revised by Law No. 2233-VIII of 07 December 2017}

3) educational plans.

{Paragraph 4, part 3 of Article 103-2 as amended by Law No. 1789-VIII of 20 December 2016; Clause 3, part 3 of Article 103-2 as revised by Law No. 2233-VIII of 07 December 2017}

The financial standards of budget security used for the educational subvention distribution are determined by the Cabinet of Ministers of Ukraine taking into account the above parameters.

{Part 3 of Article 103-2 has been supplemented with a new paragraph under Law No. 1081-IX of 15 December 2020}

In this case, the specified subventions provides a reserve of funds, which amount can not exceed 1 per cent of the total subvention.

{Paragraph of part 3, Article 103-2 as amended by Law No. 1789-VIII of 20 December 2016}

The Cabinet of Ministers of Ukraine carries out the distribution of the reserve for educational subvention and can determine the directions for the use of such funds.

{Part 3 of Article 103-2 has been supplemented with a paragraph under Law No. 1789-VIII of 20 December 2016; as amended by Law No. 2233-VIII of 07 December 2017}

4. The balance of funds on an educational subvention at the end of the budget period are stored on the accounts of relevant local budgets and are used in the next budget period, taking into account the purpose of the subvention and updating the material and technical base of educational institutions of state and communal property established in part one of this Article.

{Part 4 of Article 103-2 as amended by Law No. 293-IX of 14 November 2019}

{The Code has been supplemented with Article 103-2 under Law No. 79-VIII of 28 December 2014}

{Article 103-3 has been deleted under Law No. 914-VIII of 24 December 2015}

Article 103-3. Subvention for the provision of state support to persons with special educational needs

1. The subvention for the provision of state support to individuals with special educational needs is aimed at providing state support to educate children with blind and reduced vision, deaf and reduced hearing, with severe speech disorders, with a delay in mental development, with violations of the musculoskeletal system, with violation of intellectual development, with complex developmental disorders (including the autistic spectrum disorders) in institutions and educational institutions in accordance with part two of this Article.

2. Within the subvention for providing state support to individuals with special educational needs, expenditures are carried out for:

1) payment for specialists (which list is approved by the Cabinet of Ministers of Ukraine) based on the concluded civil contracts for:

conducting (providing) psychological and pedagogical and corrective and development classes (services) in accordance with individual development programmes for individuals with special educational needs, which are educated in inclusive classes (groups) of preschool and general secondary education institutions (except for preschool education institutions (day care centres and gardens) of the compensating type, child care centers, pre-school boarding school (orphanages), special schools, sanatorium schools, educational and rehabilitation centers);

providing psychological and pedagogical and corrective and development services ensuring the educational process of persons with special educational needs educated in the inclusive and special classes (groups) of out-of-school, professional (vocational) and professional preliminary education institutions of state and municipal property;

{Paragraph 3, clause 1, part 2 of Article 103-2 as amended by Law No. 293-IX of 14 November 2019}

2) acquisition of special correction means for psychophysical development enabling mastering the curriculum, for individuals with special educational needs, which are educated in the inclusive and special classes (groups) of preschool and general secondary education institutions (except for preschool education institutions (day care centres and gardens) of compensating type, child care centres, preschool boarding schools (orphanages), special schools, sanatorium schools, educational and rehabilitation centers), out-of-school, professional (vocational) and professional preliminary education institutions of state and municipal property. A typical list of special means of correction for psychophysical development is approved by the central executive authority, which provides formation and implements state policy in education;

{Paragraph 2, part 2 of Article 103-2 as amended by Law No. 293-IX of 14 November 2019}

3) equipping cabinets and/or resource rooms in relevant education institutions and inclusive resource centers for the provision of psychological and pedagogical and corrective services to persons with special educational needs (acquisition of methodological, educational equipment and software, objects, materials and equipment, including for long-term use).

3. In the Law on the State Budget of Ukraine, the volumes of the specified subvention are approved separately for the budget of the Autonomous Republic of Crimea, regional budgets, budgets of cities of Kyiv and Sevastopol in accordance with the number of persons with special educational needs.

Distribution of subventions for providing state support to persons with special educational needs is carried out between local budgets in accordance with the procedure established by the Council of Ministers of the Autonomous Republic of Crimea, regional state administrations in accordance with the number of persons with special educational needs, and approves a decision on the budget of the Autonomous Republic of Crimea, a decision on the regional budget.

4. The balances of subvention for the provision of state support to persons with special educational needs at the end of the budget period are stored in the accounts of relevant local budgets and are used in the next budget period, taking into account the intended purpose of subvention.

{Article 103-3 has been included to the Code under Law No. 2621-VIII of 22 November 2018}

Article 103-4. Medical subvention

1. The medical subvention shall be directed at the expenditures of local budgets envisaged in clause 3, Article 89 (in addition to sub-clause "d") and clause 3, part one, Article 90 of this Code, to pay current expenditures, except for public utilities and energy charges.

{Part one of Article 103-4 as revised by Laws No. 914-VIII of 24 December 2015, No. 1789-VIII of 20 December 2016; as amended by Law No. 2233-VIII of 07 December 2017}

2. The Law on the State Budget of Ukraine approves the scope of medical subvention separately for the budget of the Autonomous Republic of Crimea, regional budgets and district budgets, city (cities of Kyiv and Sevastopol, cities of the Republican Autonomous Republic of Crimea and regional significance) budgets and budgets of united territorial communities.

3. The medical subventions are distributed between the relevant budgets based on the formula, which is developed by the central executive body ensuring the formation and implementation of state health policy, and is approved by the Cabinet of Ministers of Ukraine and shall take into account, in particular, the following parameters:

1) population of the corresponding administrative-territorial unit;

2) corrective factors taking into account differences in the cost of providing medical care;

3) features of providing medical care in mountain settlements.

In this case, the specified subventions provides a reserve of funds, which amount can not exceed 1 per cent of the total subvention.

{Paragraph 5, part 3 of Article 103-4 as amended by Law No. 1789-VIII of 20 December 2016}

The Cabinet of Ministers of Ukraine carries out the distribution of the reserve for a medical subvention and may determine the directions for using such funds.

{Part 3 of Article 103-4 has been supplemented with a paragraph 6 under Law No. 1789-VIII of 20 December 2016; as amended by Law No. 2233-VIII of 07 December 2017}

4. Remaining balance for medical subvention at the end of the budget period are stored on accounts of relevant local budgets and can be used in the next budget period, taking into account the intended purpose of subvention and updating the material and technical base at health facilities.

{Part 4 of Article 103-4 as amended by Law No. 1789-VIII of 20 December 2016}

{The Code has been supplemented with Article 103-4 under Law No. 79-VIII of 28 December 2014}

{Article 103-5 has been deleted under Law No. 914-VIII of 24 December 2015}

Article 103-6. Additional subsidy for the implementation of expenditures transferred from the state budget for the maintenance of educational and health care institutions

Additional subsidy for the implementation of expenditures transferred from the state budget for the maintenance of educational and health care institutions is directed for:

1) expenditures of educational institutions defined in part one, Article 103-2 of this Code (except for labour expenditures for payments to the teaching staff of educational institutions specified in clauses 1-4, part one, Article 103-2 of this Code, as well as educational institutions specified by clauses 5 and 6, part one, Article 103-2 of this Code, in terms of obtaining complete general secondary education);

{Clause 1, part 1 of Article 103-6 as revised by Law No. 293-IX of 14 November 2019}

2) expenditures of health facilities specified in clause 3, part one, Article 89 and in clause 3, part three, Article 90 of this Code to pay for utilities and energy.

2. The Law on the State Budget of Ukraine approves the amount of additional subsidies for the implementation of expenditures and health care facilities for regional budgets transferred from the State Budget.

3. Additional subsidies for the implementation of expenditures transferred from the state budget for the maintenance of educational and health care institutions are distributed between the regional budgets, taking into account the following parameters:

1) population;

2) the local budgets revenues of the region specified in clause 1, part one, Articles 64 and 66 of this Code, for the relevant reporting period of the year preceding the planned;

3) the relative tax capacity index for the consolidated regional budget;

4) the number of students of general secondary and professional education (vocational) institutions.

The distribution of additional subsidies for the transfer of deposits from the state budget for the maintenance of educational and healthcare institutions is carried out in the following proportions:

10 per cent of the amount – in proportion to the share in the number of existing population in the region as of 1 January of the year preceding the planned;

40 per cent of its amount – in proportion to the share of the reduced relative tax capacity index of the consolidated regional budget;

50 per cent of the amount – in proportion to the share of the number of students in the general secondary and professional (vocational) educational institutions as of 1 January of the year preceding the planned.

{Part 3 of Article 103-6 as revised by Law No. 293-IX of 14 November 2019}

4. The reduced relative taxability index is a coefficient defined as the sum of the average tax capacity index of the regional budgets, which value is equal to 1, and an indicator reflecting the difference between the average tax capacity index of the consolidated regional budgets and the tax capacity index of the relevant consolidated regional budget.

The tax capacity index of the relevant consolidated regional budget is a coefficient determining the level of tax capacity of the consolidated budget for such a region compared to a similar average of consolidated regional budgets per person.

5. Distribution of additional subsidies for the implementation of expenditures transferred from the state budget for the maintenance of educational institutions and health services is carried out between local budgets in accordance with the procedure established by regional state administrations, in agreement with the Cabinet of Ministers of Ukraine and is approved by a decision on the regional budget.

{Part 5 of Article 103-6 as amended by Law No. 2621-VIII of 22 November 2018}

{The Code has been supplemented with Article 103-6 under Law No. 2233-VIII of 07 December 2017}

Article 104. Subventions for the maintenance of common amenities or elimination of negative consequences related to the activities of common amenities

1. Subvention for the maintenance of common amenities or elimination of negative consequences of the common amenities activities is provided from one local budget to another for compensation for relevant expenditures.

2. Terms of maintenance for common amenities or liquidation of negative consequences of the common amenities activities and subvention are determined on a contractual basis between the subvention provider and its recipient.

Article 105. Subvention for the implementation of investment projects

1. Providing subventions to implement investment projects is based on the following main principles:

1) the principle of objectivity and openness – the subvention recipient is determined by transparent procedures;

2) the principle of unity – the distribution of funds shall ensure the implementation of the national values and tasks system of innovation development and contribute to reducing the differences in living standards of different regions of the country;

3) the principle of balanced development – providing state support to territories taking into account their potential;

4) the principle of targeted use of funds – the subvention is used exclusively to the purpose defined by its provider, taking into account the forecast and software documents of the country's economic and social development and the relevant territory, the prediction of the local budget.

{Clause 4, part 1 of Article 105 as amended by Law No. 2646-VIII of 06 December 2018}

2. Subventions for investment projects are provided from the state budget to local budgets, taking into account such basic principles:

1) economic efficiency of achieving the investment project objectives involving the minimum budget funds for investment projects;

2) subsequent subventions exclusively for the creation, growth or updating of fixed assets being in municipal ownership (primarily on the completion of construction and reconstruction of objects with a degree of construction readiness of more than 70 per cent);

{Paragraph 2, part 2 of Article 105 as amended by Law No. 4318-VI of 12 January 2012}

3) financial provision of investment projects, which timeframe is longer than the budget period, necessary financial resources of local budgets, credits (loans) involved in state and/or local guarantees, and subvention funds for their implementation throughout the implementation period;

4) the level of saturation with objects of industrial, communication and social infrastructure, which increases the investment attractiveness of the territory;

{Paragraph 3, part 2 of Article 105 as revised by LawNo. 4318-VI of 12 January 2012}

{Paragraph 5, part 2 of Article 105 has been deleted under Law No. 4318-VI of 12 January 2012}

6) budget participation – subventive recipient:

{Paragraph 2, clause 6, part 2 of Article 105 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

for the budget of the Autonomous Republic of Crimea, regional budgets and local self-government budgets, except for the budget of the city of Kyiv, is not less than 3 per cent of such a subvention amount;

{Paragraph 3, clause 6, part 2 of Article 105as amended by Laws No. 5428-VI of 16 October 2012, No. 176-VIII of 10 February 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

For the budget of Kyiv, not less than 5 per cent of the scope of such a subvention;

{Paragraph 4, clause 6, part 2 of Article 105 as amended by Law No. 5428-VI of 16 October 2012}

{Paragraph 6, part 2 of Article 105 as revised by Law No. 4318-VI of 12 January 2012}

7) substantiation for the capacity of further maintenance for municipal property objects at the expense of local budgets.

3. Distribution of subventions to implement investment projects is carried out in accordance with the procedure established by the Cabinet of Ministers of Ukraine, taking into account the tasks and measures of the State Strategy for Regional Development, Regional Development Strategies based on the formalised parameters based on actual and forecast indicators of economic and social development of the relevant territory (the main of which are indicators of industrial production volume, gross agricultural production volume, capital investments volume, population density, level of unemployment, population revenues in payments per person, average monthly salary of employees).

{Part 3 of Article 105 as amended by Law No. 4318-VI of 12 January 2012}

{Article 106 has been deleted under Law No. 79-VIII of 28 December 2014}

{Article 107 has been deleted under Law No. 79-VIII of 28 December 2014}

Article 108. Procedure for the allotment of intergovernmental transfers

1. Intergovernmental transfers from the state budget to local budgets are carried out from state budget accounts by the Treasury of Ukraine to the budget of the Autonomous Republic of Crimea, regional budgets, budgets of Kyiv and Sevastopol, other local government budgets for which intergovernmental transfers are determined in the state budget.

{Part one of Article 108 as amended by Laws No. 79-VIII of 28 December 2014, No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

2. The procedure for transferring interbudgetary transfers from the state budget to local budgets, reverse subsidies, as well as the procedure for transferring interbudgetary transfers between local budgets shall be determined by the Cabinet of Ministers of Ukraine and shall ensure timeliness, uniformity, guarantee and completeness of transfers.

According to the schedule of the State Budget of Ukraine, the Treasury of Ukraine transfers the basic subsidy and reverse subsidy every decade, educational and medical subventions – twice a month, and subventions to provide state support to people with special educational needs – once a month.

{Paragraph 2, part 2 of Article 108 as revised by Law No. 212-VIII of 02 March 2015; as amended by Laws No. 914-VIII of 24 December 2015, No. 2621-VIII of 22 November 2018}

{Part 2 of Article 108 as revised by Law No. 79-VIII of 28 December 2014}

{Part 3 of Article 108 has been deleted under Law No. 79-VIII of 28 December 2014}

{Part four of Article 108 has been deleted under Law No. 79-VIII of 28 December 2014}

{Part 5 of Article 108 has been deleted under Law No. 79-VIII of 28 December 2014}

6. The Cabinet of Ministers of Ukraine in coordination with the Committee of the Verkhovna Rada of Ukraine on Budget may distribute and redistribute the amount of subventions and additional subsidies from the state budget to local budgets between local budgets within the total amount of relevant subventions and additional subsidies. At the same time, the amounts of subventions from the state budget to local budgets for elections of deputies of the Verkhovna Rada of the Autonomous Republic of Crimea, local councils and village, settlement, city mayors are distributed in the manner prescribed by the relevant law on local elections. Features of the distribution for the amounts of the educational subvention and the medical subvention regarding the reserve of funds and the redistribution for the amounts of such subventions between local budgets may be determined by the law on the State Budget of Ukraine.

{Part 6 of Article 108as amended by Laws No. 2592-VI of 07 October 2010, No. 2856-VI of 23 December 2010, No. 5428-VI of 16 October 2012; as revised by Law No. 79-VIII of 28 December 2014;as amended by Laws No. 212-VIII of 02 March 2015, No. 595-VIII of 14 July 2015, No. 914-VIII of 24 December 2015, No. 293-IX of 14 November 2019}

7. The local state administration may decide on the distribution and redistribution of transfers from the state budget to local budgets between sessions of the relevant local council, provided it delegates such powers to the local state administration, followed by amendments to the decision on the local budget.

{Article 108 has been supplemented with part 7 under Law No. 5428-VI of 16 October 2012}

SECTION V.
CONTROL OVER COMPLIANCE WITH BUDGETARY LEGISLATION AND RESPONSIBILITY FOR VIOLATIONS OF BUDGETARY LEGISLATION

Chapter 17. CONTROL OVER COMPLIANCE WITH BUDGETARY LEGISLATION

Article 109. Powers of the Verkhovna Rada of Ukraine to monitor compliance with budget legislation

1. The Verkhovna Rada of Ukraine monitors compliance with budget legislation in the process of:

1) consideration of the Budget Declaration;

{Clause 1, part 1 of Article 109 as amended by Law No. 4731-VI of 17 May 2012; as revised by Law No. 2646-VIII of 06 December 2018}

2) consideration of the draft and adoption of the law on the State Budget of Ukraine;

3) amending the law on the State Budget of Ukraine

4) implementation of the law on the State Budget of Ukraine, including by hearing reports on the implementation of the State Budget of Ukraine (including reports of the key spending units on their use of budget funds and the results of relevant budget programmes implementation);

5) consideration of the Annual Report on the Implementation of the Law on the State Budget of Ukraine;

6) use of credits (loans) involved by the state from foreign states, foreign financial institutions and international financial organisations.

{Clause 6, part 1 of Article 109 as amended by Law No. 2646-VIII of 06 December 2018}

The Verkhovna Rada of Ukraine exercises control over the activities of the Accounting Chamber in the exercise of its powers defined by law.

{Paragraph of part 1, Article 109 as amended by Laws No. 2592-VI of 07 October 2010; as revised by Law No. 176-VIII of 10 February 2015}

2. The powers of the Committee of the Verkhovna Rada of Ukraine on Budget include:

1) preparation of the Budget Declaration issue and preliminary consideration of the draft law on the State Budget of Ukraine;

{Paragraph 1, part 2 of Article 109 as amended by Laws No. 4731-VI of 17 May 2012, No. 2646-VIII of 06 December 2018}

2) submission of conclusions to the draft laws submitted to the Verkhovna Rada of Ukraine on their impact on budget indicators and compliance with the laws governing budgetary relations;

3) preliminary consideration of the annual report on the implementation of the law on the State Budget of Ukraine and preparation of a draft decision on this report for consideration by the Verkhovna Rada of Ukraine;

4) preliminary consideration for the information of the Cabinet of Ministers of Ukraine, the Ministry of Finance of Ukraine, the Treasury of Ukraine, other central executive bodies on the state of implementation of the law on the State Budget of Ukraine during the relevant budget period;

5) interaction with the Accounting Chamber (including preliminary consideration of the conclusions and proposals of the Accounting Chamber on the results of control over compliance with budget legislation).

{Paragraph 5, part 2 of Article 109 as amended by Law No. 2592-VI of 07 October 2010; as revised by Law No. 176-VIII of 10 February 2015}

At the request of the Committee of the Verkhovna Rada of Ukraine on Budget, the executive authorities and local self-government bodies shall provide the information on the state budget and local budgets necessary for the preparation and preliminary consideration of budget issues.

3. Committees of the Verkhovna Rada of Ukraine participate in the preliminary consideration of the Budget Declaration and the draft law on the State Budget of Ukraine, as well as preliminarily consider the implementation of the State Budget of Ukraine (including the conclusions and proposals of the Accounting Chamber on the results of control over compliance with budget legislation) in the part falling within the competence of the committees.

{Part 3 of Article 109 as revised by Law No. 2592-VI of 07 October 2010; as amended by Law No. 4731-VI of 17 May 2012; as revised by Law No. 176-VIII of 10 February 2015; as amended by Law No. 2646-VIII of 06 December 2018}

Article 110. Powers of the Accounting Chamber to monitor compliance with budget legislation

1. The powers of the Accounting Chamber include control over the receipt and use of funds of the State Budget of Ukraine, including the formation, servicing and repayment of public debt, efficient management of state budget funds, use of local budgets in terms of transfers from the state budget, as well as on the receipt of national taxes and fees assigned to local budgets or their share and on the use of local budgets in part of the expenditures provided for clause 2, part one, Article 82 of this Code, which are determined by the functions of the state and transferred to the Autonomous Republic of Crimea and local self-government.

{Part one of Article 110 as amended by Law No. 2621-VIII of 22 November 2018}

2. Following the results of each quarter, the Accounting Chamber shall submit conclusions on the state of implementation of the law on the State Budget of Ukraine to the Verkhovna Rada of Ukraine, as well as proposals on elimination of violations identified in the reporting budget period.

{Article 110 as revised by Laws No. 2592-VI of 07 October 2010, No. 176-VIII of 10 February 2015}

Article 111. Powers of the Ministry of Finance of Ukraine and local financial authorities to monitor compliance with budget legislation

1. The Ministry of Finance of Ukraine monitors compliance with budget legislation at each stage of the budget process for both the state budget and local budgets, unless otherwise provided by the legislation of Ukraine.

The Ministry of Finance of Ukraine, within its powers, ensures the implementation of a unified state policy in the field of control over compliance with budget legislation, coordinates and directs the activities of executive bodies authorised to control compliance with budget legislation, unless otherwise provided by law.

{Paragraph 2, part 1 of Article 111 as amended by Law No. 2646-VIII of 06 December 2018}

2. Local financial authorities monitor compliance with budget legislation at each stage of the budget process for local budgets.

3. The Ministry of Finance of Ukraine and local financial authorities receive explanations, materials and information on issues arising during the compilation, consideration, approval and implementation of budgets and reporting on their implementation from central and local executive authorities, enterprises, institutions and organisations, banks and other financial institutions of all forms of ownership in the manner prescribed by law.

Article 112. Powers of the Treasury of Ukraine to monitor compliance with budget legislation

1. The powers of the Treasury of Ukraine to control compliance with budget legislation include control over:

1) keeping records of all revenues and expenditures of the state budget and local budgets, except as provided in paragraphs three and four, part two, Article 78 of this Code, financial and budgetary reports preparation and submission;

{Clause 1, part 1 of Article 112 as amended by Law No. 79-VIII of 28 December 2014}

2) budgetary powers when crediting budget revenues;

3) compliance of the of budget managers' estimates with the budget description indicators;

4) compliance of the budget commitments made by the managers of budget funds with the relevant budget allocations, the budget programme passport;

{Clause 4, part 1 of Article 112 as amended by Law No. 2646-VIII of 06 December 2018}

5) compliance of payments with the budget commitment and the corresponding budget allocation.

The Treasury of Ukraine, within its powers, ensures the arrangement and coordination for the activities of the chief accountants of budgetary institutions and control over the implementation of their powers by evaluating their activities.

{Paragraph 7, part 1 of Article 112 as amended by Law No. 2856-VI of 23 December 2010}

Article 113. Powers of state financial control bodies to control compliance with budget legislation

{Title of Article 113 as amended by Laws No. 3614-VI of 07 July 2011, No. 5463-VI of 16 October 2012}

1. The powers of the state financial control bodies to control compliance with budget legislation include control over:

{Paragraph one, part 1 of Article 113 as amended by Law No. 3614-VI of 07 July 2011}

1) targeted, efficient and effective use of funds from the state budget and local budgets (including the state financial audit);

{Clause 1, part 1 of Article 113 as amended by Law No. 2646-VIII of 06 December 2018}

2) targeted use and timely repayment of loans obtained under state (local) guarantees;

3) the reliability of determining the need for budget funds in the preparation of planned budget indicators;

4) compliance of the budget commitments made by the managers of budget funds with the relevant budget allocations, the budget programme passport;

{Clause 4, part 1 of Article 113 as amended by Law No. 2646-VIII of 06 December 2018}

4-1) compliance of the long-term obligations under the service approved by the budget funds managers with the conditions for the purchase of energy service approved in the prescribed manner;

{Part 1, Article 113 has been supplemented with paragraph 4-1 under Law No. 328-VIII of 09 April 2015}

5) accounting, as well as preparation of financial and budgetary reports, passports of budget programmes and reports on their implementation, estimates and other documents used in the process of budget execution;

{Clause 5, part 1 of Article 113 as amended by Law No. 2646-VIII of 06 December 2018}

6) the state of internal control and internal audit at budget managers.

{Part one of Article 113 as amended by Law No. 5463-VI of 16 October 2012}

2. The central executive body implementing the state policy in the field of state financial control shall submit monthly to the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine and the Ministry of Finance of Ukraine reports on the generalised results of control over compliance with budget legislation.

{Part 2 of Article 113as amended by Laws No. 3614-VI of 07 July 2011, No. 5463-VI of 16 October 2012}

Article 114. Powers of the Verkhovna Rada of the Autonomous Republic of Crimea and relevant local councils to monitor compliance with budget legislation

1. The Verkhovna Rada of the Autonomous Republic of Crimea and the relevant local councils for monitoring compliance with budget legislation shall carry out:

1) control over the implementation of the decision on the local budget;

2) other powers provided by this Code, the law on the State Budget of Ukraine and the decision on the local budget.

Article 115. Powers of the Council of Ministers of the Autonomous Republic of Crimea, local state administrations and executive bodies of the relevant local councils to control compliance with budget legislation

1. Control over compliance with budget legislation for indicators of approved budgets, budget description, budget estimates of budgetary institutions and other documents used in the budget process is carried out:

1) by the Council of Ministers of the Autonomous Republic of Crimea – concerning the budgets of local self-government and district budgets of the Autonomous Republic of Crimea;

{Clause 1, part 1 of Article 115 as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021; as amended by Law No. 1081-IX of 15 December 2020}

2) regional state administrations – in relation to local government budgets and district budgets;

{Clause 2, part 1 of Article 115 as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

3) city state administrations in the cities of Kyiv and Sevastopol – in relation to district budgets in these cities;

{Clause 4, part 1 of Article 115 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

5) executive bodies of city councils – concerning budgets of districts in cities.

{Clause 1, part 1 of Article 115 as amended by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

Chapter 18. RESPONSIBILITY AND MEASURES OF INFLUENCE FOR COMMITTED VIOLATIONS OF BUDGETARY LEGISLATION

Article 116. Violation of budget legislation

1. Violation of budget legislation is a violation by a participant in the budget process of the norms established by this Code or other budget legislation on drafting, reviewing, approving, amending, executing the budget and reporting on its implementation, namely:

1) inclusion of unreliable data in budget requests;

2) violation of the established deadlines for submission of budget requests or their non-submission;

3) determination of unreliable amounts of budget funds when planning budget indicators;

4) planning of revenues or expenditures of the state budget (local budget), not referred to as such by this Code or the law on the State Budget of Ukraine;

5) violation of the established procedure or deadlines for submission of the draft law on the State Budget of Ukraine (draft decision on the local budget) for consideration by the Verkhovna Rada of Ukraine (Verkhovna Rada of the Autonomous Republic of Crimea, local council);

6) violation of the established procedure or terms of consideration for the project and adoption of the law on the State Budget of Ukraine (decision on the local budget);

7) making a decision on the local budget in violation of the requirements in this Code or the law on the State Budget of Ukraine (including the preparation of the budget in terms of intergovernmental transfers);

{Clause 7, part 1 of Article 116 as amended by Law No. 79-VIII of 28 December 2014}

8) violation of the requirements in this Code regarding the approval of the state budget (local budget) with a deficit or surplus;

9) inclusion in the special fund of the budget of revenues from sources not referred to such by this Code or the law on the State Budget of Ukraine;

10) crediting budget revenues to any accounts, except for the single treasury account (taking into account the features specified in part nine, Article 13 of this Code), as well as their accumulation in the accounts of bodies controlling the collection of budget revenues;

{Clause 10, part 1 of Article 116 as amended by Law No. 79-VIII of 28 December 2014; as revised by LawNo. 2646-VIII of 06 December 2018}

11) crediting budget revenues to a budget other than specified by this Code or the Law on the State Budget of Ukraine, including as a result of the taxes and fees and other revenues division between budgets in violation for certain amounts;

12) implementation of state (local) borrowings, provision of state (local) guarantees in violation of the requirements of this Code;

13) making decisions leading to the excess of the maximum amount of state (local) debt or the maximum amount of state (local) guarantees;

14) placement of temporarily free budget funds in violation of the requirements of this Code;

15) creation of extra-budgetary funds, violation of the requirements of this Code regarding the opening of extra-budgetary accounts for the placement of budget funds;

16) violation of the procedure or deadlines for submission, consideration and approval of estimates and other documents used in the process of budget implementation, approval in estimates for indicators not confirmed by calculations and economic justifications;

16-1) violation of the requirements of this Code regarding the development and provision of the approval on the procedures for the use of budget funds by the key spending units;

{Part 1, Article 116 has been supplemented with paragraph 16-1 under Law No. 79-VIII of 28 December 2014; as revised by Law No. 1081-IX of 15 December 2020}

17) violation of the procedure or deadlines for submission and approval on budget programmes passports;

{Clause 17, part 1 of Article 116 as amended by Law No. 2646-VIII of 06 December 2018}

18) violation of the established terms of informing about documents on the amounts of budget allocations to the managers of budget funds of the lower level or recipients of budget funds;

19) violation of the procedure and terms for opening (closing) accounts in the bodies of the Treasury of Ukraine;

20) making commitments without appropriate budget allocations or in excess of the powers established by this Code or the law on the State Budget of Ukraine;

21) violation of the procedure for registration and accounting of budget commitments, including unreasonable refusal to register or late registration of budget commitments;

22) violation of the requirements of this Code when making advance payment for goods, works and services at the expense of budget funds, as well as violation of the procedure and terms of such payment;

23) making payments at the expense of budget funds without registration of budget commitments, in the absence of supporting documents or with the inclusion of inaccurate information in payment documents, as well as unreasonable refusal to make payments by the Treasury of Ukraine;

24) misuse of budget funds;

25) violation of the requirements of this Code in the implementation of state budget expenditures (local budget) in case of untimely entry into force of the law on the State Budget of Ukraine (untimely decision-making on the local budget);

26) granting loans from the budget or returning loans to the budget in violation of the requirements of this Code and/or the established conditions of budget lending;

27) borrowing by budgetary institutions in any form or granting loans by budgetary institutions to legal entities or individuals from the budget contrary to this Code;

28) implementation of expenditures, crediting of the local budget, which shall be carried out from another budget in accordance with this Code;

29) making budget expenditures or providing loans from the budget without established budget allocations or with their excess contrary to this Code or the law on the State Budget of Ukraine;

30) violation of the requirements of this Code regarding the allocation of funds from the reserve fund of the budget;

31) violation of the established requirements for the application of budget classification;

32) inclusion of unreliable data in reports on the execution of the state budget (local budget), annual report on the implementation of the law on the State Budget of Ukraine (decision on the local budget), as well as violation of the procedure and deadlines for submitting such reports;

33) violation of the established requirements for accounting and reporting on the budgets implementation;

34) violation of the established procedure or deadlines for submission of financial and budgetary reports of budgetary institutions, as well as partial submission of such reports;

35) inconsistency of the data provided in the financial and budgetary reporting of budgetary institutions with the accounting data;

36) inclusion of unreliable data in reports on the implementation of budget programmes passports, as well as violation of the procedure and deadlines for submitting such reports;

{Clause 36, part 1 of Article 116 as amended by Law No. 2646-VIII of 06 December 2018}

37) issuance of regulatory legal acts reducing budget revenues or increasing budget expenditures contrary to the law;

38) implementation of expenditures for the maintenance of a budgetary institution simultaneously from different budgets contrary to this Code or the law on the State Budget of Ukraine;

39) violation of the requirements of Article 28 of this Code regarding the disclosure and availability of information on the budget;

40) other cases of violation of budget legislation by a participant in the budget process.

Article 117. Measures of influence for violation of budget legislation

1. The following measures of influence may be applied to participants in the budget process for violation of budget legislation:

1) warning about improper implementation of budget legislation with the requirement to eliminate violations of budget legislation – is applied in all cases of detecting violations of budget legislation. Identified violations of budget legislation shall be eliminated within 30 calendar days;

2) suspension of operations with budget funds – is used for violations of budget legislation, defined by clauses 1-3, 10, 11, 14-29, 32-36, 38 and 40, part one, Article 116 of this Code, under the procedure established in Article 120 of thi Code;

3) suspension of budget allocations – applied for violations of budget legislation, defined by clausses 20, 22-29, 38 and 40, part one, Article 116 of this Code.

Suspension of budget allocations provides for the termination of the authority to make a budget commitment for an appropriate amount for a period of one to three months within the current budget period by amending the budget (estimate) in the manner prescribed by the Ministry of Finance of Ukraine;

4) reduction of budget allocations – applied for violations of budget legislation, defined by clause 24 (in relation to budget managers), clause 29 and clause 38, part one, Article 116 of this Code.

Reduction of budget allocations provides for deprivation of the authority to make a budget commitment for the appropriate amount until the end of the current budget period by amending the budget description (estimate) and, if necessary, with further amendments to the law on the State Budget of Ukraine (decision on a local budget) ) under the procedure established by the Cabinet of Ministers of Ukraine;

5) return of budget funds to the relevant budget – applied for violation of budget legislation specified in clause 24 (for subventions and funds provided to budget recipients), part one, Article 116 of this Code, under the procedure prescribed by the Cabinet of Ministers of Ukraine;

6) suspension of the decision on the local budget – is applied for violation of the budget legislation defined by clause 7, part one, Article 116 of this Code, under the procedure established in Article 122 of this Code;

7) indisputable withdrawal of funds from local budgets – is applied for violation of budget legislation, defined by clause 28, part one, Article 116 of this Code.

Indisputable withdrawal of funds from local budgets involves the recovery of funds from local budgets to the state budget, including by reducing the amount of transfers (basic subsidies) to local budgets by the appropriate amount, in the manner prescribed by the Cabinet of Ministers of Ukraine;

{Paragraph 2, clause 7, part 1 of Article 117 as amended by Law No. 79-VIII of 28 December 2014}

8) other measures of influence which may be determined by the law on the State Budget of Ukraine – are applied for violation of budget legislation in accordance with such law.

Article 118. Application of measures of influence for violation of budget legislation

1. A warning on improper implementation of budget legislation with a requirement to eliminate violations of budget legislation may be applied by participants in the budget process authorised by this Code to monitor compliance with budget legislation.

2. The decision to apply measures of influence for violation of budget legislation, defined by clauses 2-5 and 7, part one, Article 117 of this Code, shall be made by the Ministry of Finance of Ukraine, Treasury bodies, state financial control bodies, local financial bodies, key spending units within the limits of the powers established by them based on the protocol on violation of the budgetary legislation or the act of audit and the materials attached to them. The decision enters into force from the date of its signing.

{Paragraph one, part 2 of Article 118 as amended by Laws No. 3614-VI of 07 July 2011, No. 5463-VI of 16 October 2012}

The form and procedure for drawing up a report on violations of budget legislation shall be established by the Ministry of Finance of Ukraine.

3. It is not allowed to apply measures of influence for violations of budget legislation, defined by Article 117 of this Code, for previously identified and eliminated violations of budget legislation.

4. Information on the results of control over compliance with budget legislation shall be published by the bodies authorised to control compliance with budget legislation, unless otherwise provided by law.

Article 119. Improper use of budget funds

1. Improper use of budget funds is their spending for purposes not meeting:

budget purpose established by the law on the State Budget of Ukraine (decision on the local budget);

directions of use for budget funds, specified in the passport of the budget programme or under the procedure for using budget funds (including the procedure and conditions of granting subventions);

{Paragraph 3, part 1 of Article 119as amended by Laws No. 3614-VI of 07 July 2011, No. 2621-VIII of 22 November 2018, No. 2646-VIII of 06 December 2018}

budget allocation (budget description, estimate, plan for the use of budget funds).

Article 120. Transactions termination for budget funds

1. Transactions termination for budget funds is a suspension for any operations of making payments from the account of the violator of budget legislation. The mechanism for transactions termination for budget funds is determined by the Cabinet of Ministers of Ukraine.

2. Transactions termination for budget funds is possible for a period of up to 30 days within the current budget period unless otherwise provided by law.

Article 121. Responsibility for violation of budget legislation

1. Officials due to whose fault the budget legislation has been violated shall bear civil, disciplinary, administrative or criminal liability in accordance with the law.

2. Violation of budget legislation committed by the administrator or recipient of budget funds may be grounds for prosecution under the laws of Ukraine of its head or other responsible officials, depending on the nature of their actions.

Article 122. Monitoring compliance with budget legislation in terms of intergovernmental transfers

{Title of Article 122 as amended by Law No. 79-VIII of 28 December 2014}

1. In case of violation of the requirements of this Code and the law on the State Budget of Ukraine on drawing up the relevant budget in terms of interbudgetary transfers, the Cabinet of Ministers of Ukraine has the right to apply to the court with a simultaneous request for immediate suspension of the decision on the relevant local budget until the end of the trial within one month from the date of entry into force of the decision on the budget of the Autonomous Republic of Crimea, regional budget, budgets of Kyiv and Sevastopol. The Council of Ministers of the Autonomous Republic of Crimea, region, Kyiv and Sevastopol city state administrations shall send it to the Ministry of Finance of Ukraine before the introduction of the institution of a representative of the President of Ukraine the day after the Chairman of the Verkhovna Rada of the Autonomous Republic of Crimea or the relevant local council has signed a decision on the local budget or amended it, it shall be sent to the Ministry of Finance of Ukraine.

{Part one of Article 122 as amended by Law No. 79-VIII of 28 December 2014}

2. In case of violation of the requirements for budgeting in accordance with this Code and the law on the State Budget of Ukraine regarding intergovernmental transfers, the Chairman of the Council of Ministers of the Autonomous Republic of Crimea, the head of regional, Kyiv and Sevastopol city state administrations shall be granted the right to apply to the court with a simultaneous request for immediate suspension of the decision on the relevant local budget until the end of the trial within a month from the date of entry into force of the decision on the district budget, local government budget. District state administrations prior to the introduction of the institution of a representative of the President of Ukraine, executive bodies of the village, settlement, city, district councils in Kyiv and Sevastopol shall send it to the Council of Ministers of the Autonomous Republic of Crimea, region, Kyiv and Sevastopol city state administrations the day after the head of the relevant local council signs or amends the decision on the local budget.

{Part 2 of Article 122 as amended by Law No. 79-VIII of 28 December 2014; as revised by Law No. 837-VIII of 26 November 2015; as amended by Law No. 2233-VIII of 07 December 2017; as revised by Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

{Part 3 of Article 122 has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

4. In case of suspension for the decision on the local budget, the expenses of the local budget shall be carried out in accordance with the procedure established in Article 79 of this Code.

{Text of Article 122 as amended by Law No. 79-VIII of 28 December 2014}

Article 123. Responsibility of the Treasury of Ukraine

1. Treasury bodies of Ukraine are responsible for:

1) non-compliance with the requirements for accounting and reporting on the implementation of budgets;

2) late submission of reports on budget execution;

3) implementation of expenditures in excess of the indicators approved by the budget;

4) violation in the process of control over budgetary powers in crediting budget revenues and making payments on budgetary obligations of budget funds managers in accordance with budget allocations;

5) non-compliance with the procedure for treasury servicing of state and local budgets.

2. The heads of the bodies of the Treasury of Ukraine shall bear personal responsibility in case of their violation of the budget legislation and non-fulfilment of the requirements for the treasury service of the state and local budgets established by this Code.

Article 124. Appeal against the decision to apply an influence measure for violation of budget legislation

1. The decision to apply a measure of influence for violation of budget legislation may be appealed in the manner prescribed by law. The decision may be appealed to the body issued it, or in court within 10 days from the date of its issuance, unless otherwise provided by law.

2. An appeal against a decision to apply a measure of influence for violation of budget legislation shall not suspend the execution of the said decision.

3. If the court finds a decision to apply a measure of influence for violation of budget legislation completely or partially illegal to the person in respect of whom it was issued, the rights limited by such a decision shall be restored.

4. The decision of the court may be appealed in the manner prescribed by law.

SECTION VI
FINAL AND TRANSITIONAL PROVISIONS

1. This Code shall enter into force on 1 January 2011, except for:

clause 20-1, part 1 of Article 87 та clause 20-1, part 1 of Article 91 (as revised by Law of Ukraine of 16 October 2012 No. 5428-VI) of this Code, which enter into force on 1 January 2014;

{Paragraph 2, clause 1, Section VI as amended by Law No. 1081-IX of 15 December 2020}

clause 2, part two, Article 60 and clause 5, part two, Article 61, which shall enter into force on 1 January 2018.

{Paragraph 3, clause 1, Section VIas amended by Laws No. 914-VIII of 24 December 2015, No. 1789-VIII of 20 December 2016}

{Clause 1, Section VI as amended by Law No. 2856-VI of 23 December 2010; as revised by LawNo. 5428-VI of 16 October 2012}

1-1. It shall further be established that due to the implementation of the Law of Ukraine of 19 October 2017 "On state financial guarantees of medical care" certain provisions of this Code are applied as follows:

1) in clause 8, part one, Article 87 of this Code:

sub-clauses "a", "b", "c" and "d" valid until 1 January 2020;

sub-clause "f" enters into force on 1 July 2018 and is valid until 1 January 2020;

sub-clauses "g", "h" and "i" enter into force on 1 January 2020;

2) in clause 3, par one, Article 89 of this Code:

sub-clause "a-1" is valid until 1 July 2018;

sub-clauses "a", "b" and "c" are valid until 1 April 2020;

sub-clause "d" enters into force on 1 July 2018 and is valid until 1 April 2020;

sub-clauses "e" and "f" enter into force on 1 April 2020;

sub-clause "g" enters into force on 1 January 2020;

{Subclause 2, clause 1-1, Section VI as revised by LawNo. 293-IX of 14 November 2019}

3) in clause 3, part 1, Article 90 of this Code:

sub-clauses "a", "b", "c" and "d" are valid until 1 April 2020;

sub-clauses "e" and "f" enter into force on 1 April 2020;

sub-clause "g" enters into force on 1 January 2020;

sub-clause "h" enters into force on 1 April 2020;

{Subclause 3, clause 1-1, Section VI as revised by LawNo. 293-IX of 14 November 2019}

3-1) clause 20-6, part one, Article 91 of this Code is valid until 1 January 2023;

{Clause 1-1, Section VI has been supplemented with sub-clause 3-1 under Law No. 1081-IX of 15 December 2020}

4) clause 8, part one, Article 97 and Article 103-4 of this Code are valid until 1 April 2020;

{Sub-clause 4, clause 1-1, Section VI as revised by Law No. 293-IX of 4 November 2019}

5) from 1 July 2018 to 1 January 2020, the budgets of administrative-territorial units which public health facilities have not concluded contracts for medical care under the programme of state guarantees of medical care for primary health care, a medical subvention is provided in the manner prescribed by the Cabinet of Ministers of Ukraine as an exception to the provisions of sub-clause "f", clause 8, part one, Article 87 of this Code;

6) from 1 April 2019 to 1 January 2020, pilot projects on providing state guarantees of medical care for the population under the programme of medical guarantees for relevant types of medical services, certain health care facilities, settlements or regions, as well as reimbursement of medicines for the treatment of certain diseases are implemented in the manner prescribed by the Cabinet of Ministers of Ukraine as an exception to the provisions of clause 8, part one, Article 87, clause 3, part one, Article 89, clause 3, part one, Article 90 and part one, Article 103-4 of this Code.

{Clause 1-1, Section VI has been supplemented with sub-clause 6 under Law No. 2621-VIII of 22 November 2018}

{Section VI has been supplemented with paragraph 1-1 under Law No. 2233-VIII of 07 December 2017}

2. Recognise as invalid the Budget Code of Ukraine (The Official Bulletin of the Verkhovna Rada of Ukraine, 2001, Nos. 37–38, Article 189, as amended).

3. It shall further be established that the provisions of part four, Article 17 of this Code do not apply to the provision of state guarantees for credits (loans) of economic entities ensuring the implementation of the international project "Cyclone-4".

{Clause 3, Section VI as amended by Laws No. 3172-VI of 05 April 2011, No. 163-VII of 04 April 2013, No. 79-VIII of 28 December 2014, No. 176-VIII of 10 February 2015}

3-1. It shall further be established that the provisions of part thirteen, Article 17 of this Code do not apply in case of instalment payment for the debt of the State Enterprise "?Production Association Southern Machine-Building Plant named after O.M. Makarov" to the state on a loan raised on 2 February 2004, in Colvis Finance Limited (Great Britain) under the state guarantee, as well as the Antonov State Enterprise to the state for performance of obligations under the bonds issued by the state enterprise Antonov Serial Production Plant in 2009 under the state guarantees At the same time, the number of fines and other penalties accrued due to the non-fulfilment of such obligations by the State Enterprise "?Production Association Southern Machine-Building Plant named after O.M. Makarov" and the Antonov State Enterprise for the restructured amount of debt is written off.

{Section VI has been supplemented with paragraph 3-1 under Law No. 3396-VI of 19 May 2011; as revised by Law No. 1702-VIII of 20 October 2016}

3-2. It shall further be established that the provisions of paragraphs two and three, part one and part five, Article 16 of this Code shall not apply to credits (loans) involved based on the international agreements of Ukraine.

{Section VI has been supplemented with paragraph 3-2 under Law No. 3614-VI of 07 July 2011}

3-3. It shall further be established that the debt of Ukraine to the International Monetary Fund for the purposes of this Code:

on loans received by the Cabinet of Ministers of Ukraine and on the distribution of special drawing rights used by the Cabinet of Ministers of Ukraine, belongs to the state debt;

on loans obtained by the National Bank of Ukraine in order to maintain the balance of payments and monetary policy, and on the distribution of special borrowing rights belongs to the state-guaranteed debt.

{Section VI has been supplemented with paragraph 3-3 under Law No. 3614-VI of 07 July 2011}

3-4. It shall further be established that until 1 January 2018, the provisions of this Code do not apply to the provision of state guarantees for the purpose of forming a stabilisation (reserve) energy fund. The provision of such state guarantees is carried out exclusively within the limits and in the areas defined by the law on the State Budget of Ukraine.

{Paragraph one, clause 3-4, Section VI as amended by Law No. 1789-VIII of 20 December 2016}

Guarantee obligations arising due to the implementation of this paragraph belong to the state-guaranteed debt.

{Section VI has been supplemented with paragraph 3-4 under Law No. 937-VIII of 26 January 2016}

3-5. The Ministry of Finance of Ukraine exercises the powers and functions of managing public debt and state-guaranteed debt until the Debt Agency of Ukraine becomes operational.

{Section VI has been supplemented with paragraph 3-5 under Law No. 293-IX of 14 November 2019}

3-6. It shall further be established that the central executive body implementing state policy in the field of road management, in order to finance the development of the network and maintenance of public roads of state importance has the right to borrow under state guarantees in the manner prescribed by the Cabinet of Ministers of Ukraine as an exception to the provisions of part four Article 17 of this Code, if the relevant provision is provided in the law on the State Budget of Ukraine.

{Section VI has been supplemented with paragraph 3-6 under Law No. 467-IX of 16 January 2020}

4. It shall further be established that the Verkhovna Rada of the Autonomous Republic of Crimea, the city council is obliged to take measures to bring the debt in accordance with Code for the next three budget periods in case of excess for the maximum size defined by paragraph one, part three, Article 18 of this Code, as of 1 January 2011.

4-1. It shall further be established that:

redistribution of expenditures between lower-level budget managers in the system of the State Judicial Administration of Ukraine within the total amount of budget allocations for the relevant budget programme separately for general and special funds of the state budget is carried out by the State Judicial Administration of Ukraine;

{Paragraph 2, clause 4-1, Section VIas amended by Laws No. 914-VIII of 24 December 2015, No. 1789-VIII of 20 December 2016}

{Paragraph 3, clause 4-1, Section VI has been deleted under Law No. 914-VIII of 24 December 2015}

redistribution of expenses, which is carried out in accordance with the paragraph two of this clause and leads to a change in the amount of court expenses, shall be agreed by the State Judicial Administration of Ukraine with the High Council of Justice.

{Clause 4-1, Section VI been supplemented with paragraph 4 under Law No. 1081-IX of 15 December 2020}

{Section VI has been supplemented with paragraph 4-1 under Law No. 2856-VI of 23 December 2010}

{Clause 5, Section VI has been deleted under Law No. 79-VIII of 28 December 2014}

{Clause 5-1, Section VI has been deleted under Law No. 79-VIII of 28 December 2014}

6. It shall further be established that the Cabinet of Ministers of Ukraine the amount of intergovernmental transfers created units in the draft law on the State Budget of Ukraine after completion of administrative-territorial reform in terms of consolidation of administrative-territorial units and entry into force of relevant amendments to laws on local self-government determines.

7. It shall further be established that the Cabinet of Ministers of Ukraine, the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils provide benefits to certain categories of citizens by introducing social cards and spending in accordance with the legislation of Ukraine in accordance with this Code exclusively using the Unified State Automated Register of Persons Entitled to Privileges.

8. The Cabinet of Ministers of Ukraine has the right to set the amount of social benefits, not determined by law, in absolute amounts within the budget allocations established by the relevant budget programmes, until the legislative settlement of such an issue.

9. It shall further be established that before the legislative settlement of the indisputable write-off of budget funds and compensation for losses caused to the budget:

1) the court decision on recovery (seizure) of state budget (local budgets) funds is executed exclusively by the Treasury of Ukraine. These decisions are transferred for execution to the Treasury of Ukraine.

Undisputed write-off of state budget (local budgets) funds is carried out by the Treasury of Ukraine in the manner prescribed by the Cabinet of Ministers of Ukraine, in the order of receiving such decisions on budget expenditures – within the relevant budget allocations and budget assignments.

Expenditures of budgetary institutions, in which respect a decision has been made to seize them, may be made in the part of expenditures defined as protected by Article 55 of this Code, if indicated in a court decision;

2) compensation in accordance with the law for damage caused to a natural or legal person as a result of illegally adopted decisions, actions or inaction of public authorities (authorities of the Autonomous Republic of Crimea, local governments), as well as their officials and officials in the exercise of their powers the state (Autonomous Republic of Crimea, local governments) at the expense of the state budget (local budgets) within the budget allocations by court decision in the amount not exceeding the amount of real losses, in the manner prescribed by the Cabinet of Ministers of Ukraine.

If additional funds in excess of budget allocations are required to compensate for such damage, appropriate proposals on making amendments to the Law on the State Budget of Ukraine (decision on the local budget) and/or allocation of funds from the reserve fund of the state budget (local budget) shall be submitted;

3) in the case of indisputable write-off of state budget (local budgets) funds, the Treasury of Ukraine shall reflect the relevant budgetary obligations in the accounting of the budget funds manager, due to whose fault such obligations arose. Repayment of such budget commitments shall be made exclusively at the expense of the budget allocations of this budget manager. At the same time, the budget manager is obliged to bring other budget commitments into line with budget allocations;

4) write-off of funds by the relevant court decision in favor of employees, servicemen, privates and officers, police officers of budgetary institutions who are entitled to free or preferential material and household support, is carried out by the Treasury of Ukraine from the accounts of the relevant budget manager within its budget allocations;

{Sub-clause 4, clause 9, Section VI as amended by Law No. 2233-VIII of 07 December 2017}

5) write-off of funds from the budget by a court decision to return to the taxpayer overpaid and/or erroneously paid taxes and fees and other budget revenues is carried out within the limits of excessively and/or erroneously paid to the budget funds;

6) return by court decision of the value of property confiscated or turned into state revenue by the court is carried out in the amount of funds received by the budget from the sale of this property, less and except taxes and fees accrued in accordance with law but not paid at the time of sale .

Assessment of property confiscated or turned into state revenue by the court is carried out in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

The sale of property confiscated or turned over to the state revenue is carried out in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

Reimbursement of expenses related to transportation, storage, expert assessment, certification of property confiscated or turned into state revenue by the court is carried out at the expense of budget appointments of authorised public authorities in the manner prescribed by the Ministry of Finance of Ukraine.

Heads of institutions, responsible officials, officials who keep records, orders, storage and sale of property confiscated or turned into state revenue by the court, in exercising such powers are responsible for actions or omissions in accordance with the law;

7) return of confiscated (excluded) national and foreign currency by the court decision is carried out by the Treasury of Ukraine in the currency of payment, which was credited to the state budget, or at the request of the recipient in hryvnia equivalent at the official exchange rate of the National Bank of Ukraine;

8) court decisions providing for the write-off of funds for expenditures, budget allocations for which are not defined by the law on the State Budget of Ukraine (decision on the local budget), are subject to appeal by public authorities (authorities of the Autonomous Republic of Crimea, local governments) in appellate, cassation order.

Write-off of state budget funds (local budgets) for the execution of court decisions is carried out from the time of the establishment of budget expenditures for such expenditures in the law on the State Budget of Ukraine (decision on the local budget) or in amendments thereto;

9) funds reimbursed by the state from the state budget (the Autonomous Republic of Crimea, local governments from local budgets) in accordance with this paragraph, are considered losses of the state budget (local budgets). At the request of the Treasury of Ukraine, the prosecutor's office applies to the court in the interests of the state with claims for damages to the state budget (local budgets);

10) officials and public officials of state authorities (authorities of the Autonomous Republic of Crimea, local governments), whose actions caused damage, which is reimbursed from the budget, bear civil, administrative and criminal liability in accordance with the law.

In the case of establishing in the actions of officials, public officials of state authorities (authorities of the Autonomous Republic of Crimea, local governments) the composition of a criminal offence on a court conviction against him/her, which has entered into force, only such a person can be subject to physical and legal entities for compensation of lost property gain and non-pecuniary damage in the prescribed manner.

{Paragraph 2, sub-clause 10, clause 9, Section VI as amended by Law No. 704-IX of 16 June 2020}

In case of establishment signs of a criminal offence according to the court conviction concerning it which has come into force in actions of the officials, public officials of state authorities (authorities of the Autonomous Republic of Crimea, local governments), state authorities (authorities of the Autonomous Republic of Crimea, local authorities) exercise the right of recourse to this person for compensation for damages to the state budget (local budgets) in the manner prescribed by law, in the amount of compensation paid, unless otherwise provided by law.

{Paragraph 3, sub-clause 10, clause 9, Section VI as amended by Law No. 704-IX of 16 June 2020}

Public authorities (authorities of the Autonomous Republic of Crimea, local governments) conduct an official investigation into the official persons of these bodies after the execution of court decisions on the recovery of funds from accounts on which the state budget (local budgets) are accounted, in the cases specified in this paragraph, if the decision of the court is not established of the criminal offence in the actions of officials, public officials.

{Paragraph 3, sub-clause 10, clause 9, Section VI as amended by Law No. 704-IX of 16 June 2020}

Based on the results of the official investigation, state authorities (authorities of the Autonomous Republic of Crimea, local governments) and bodies of the Treasury of Ukraine may apply to the court with a claim for damages to the state budget (local budgets) within a month with the presentation of a counterclaim (recourse) in the amount of compensation paid to officials, public officials of these bodies, guilty of damages (except for compensation related to labour relations and compensation for non-pecuniary damage).

{Paragraph 5, sub-clause 10, clause 9, Section VI as amended by Law No. 1697-VII of 14 October 2014}

If the damage caused to the state budget (local budget) is the result of joint actions or inaction of several officials and public officials who caused damage to individuals or legal entities, such officials are jointly and severally liable in accordance with the Civil Code of Ukraine and other legislation Of Ukraine.

9-1. It shall further be established that the State Enterprise "National Atomic Energy Generating Company "Energoatom" transfers the funds of the financial reserve for decommissioning of nuclear units formed in accordance with the Law of Ukraine "On streamlining issues related to nuclear safety" to a special fund of the State Budget of Ukraine . To credit these funds, the Treasury of Ukraine opens an appropriate budget account for revenues.

{Section VI has been supplemented with paragraph 9-1 under Law No. 2856-VI of 23 December 2010}

10. The Cabinet of Ministers of Ukraine shall ensure by 1 March 2020:

{Paragraph one, clause 10, Section VI as amended by Laws No. 1789-VIII of 20 December 2016, No. 2233-VIII of 07 December 2017, No. 2621-VIII of 22 November 2018}

{Clause 1-1, Section VI has been supplemented with sub-clause 6 under Law No. 2621-VIII of 22 November 2018}

conducting an inventory of all regulations governing the application of sectoral standards in the implementation of local budget expenditures, in particular on the network of budgetary institutions, pedagogical workload, standards of expenditures of budgetary institutions, and establishing the minimum and maximum value of such standards depending on financial resources;

approval of state social standards and norms in accordance with Article 94 of this Code in a descriptive and cost form for each of the powers delegated by the state to local self-government in terms of the average administrative-territorial unit. Make appropriate changes to the regulations governing the application of industry standards for the provision of social services and standards for expenditures from local budgets, in particular for the network, staffing standards, workload, standards of expenditures of budgetary institutions, providing for the possibility of annual adjustment of state social standards depending on changes in prices and other conditions of their formation.

{Paragraph 10, Section VI as revised by Laws No. 5428-VI of 16 October 2012, No. 79-VIII of 28 December 2014}

11. The Cabinet of Ministers of Ukraine shall develop draft laws of Ukraine on health care during the year, providing for the implementation of measures to:

transfer of departmental institutions and health care institutions (except for institutions and establishments of the Armed Forces of Ukraine, other military formations and law enforcement bodies formed in accordance with the laws of Ukraine, institutions (establishments) of health care of the State Administration, the National Academy of Sciences of Ukraine, clinics of research institutes of the National Academy of Medical Sciences of Ukraine) to the sphere of management of the central executive body to ensure the implementation of state policy in the field of health care;

{Paragraph 2, clause 11, Section VI as amended by Laws No. 212-VIII of 02 March 2015, No. 288-VIII of 07 April 2015, No. 914-VIII of 24 December 2015}

transition from the maintenance of state and municipal treatment and prevention facilities to the payment of relevant medical services in the use of budget funds (with a change in the organisational and legal forms of management for such institutions);

introduction of a new mechanism for financial support of primary health care;

preparation of conditions for the transition to a health insurance model.

{Clause 12, Section VI has been deleted under Law No. 1081-IX of 15 December 2020}

12-1. The Cabinet of Ministers of Ukraine shall establish a list of quasi-fiscal operations and authorities (management) responsible for assessing the possible impact of such operations on budget indicators by 1 January 2013.

{Section VI has been supplemented with paragraph 12-1 under Law No. 3614-VI of 07 July 2011}

{Clause 13, Section VI has been deleted under Law No. 3828-VI of 06 October 2011}

14. It shall further be established that:

1) The Cabinet of Ministers of Ukraine shall ensure the submission of draft budgets and estimates of funds for compulsory state social and pension insurance for the planned year to the Verkhovna Rada of Ukraine and the President of Ukraine no later than September 15 of the previous year, together with the materials attached to the draft law on the State Budget of Ukraine in accordance with Article 38 of this Code;

{Subclause 1-1, clause 14, Section VI has been deleted under Law No. 914-VIII of 24 December 2015}

1-1) approval for the budgets of the obligatory state pension and social insurance funds is carried out by the Cabinet of Ministers of Ukraine within a month from the date of entry into force of the law on the State Budget of Ukraine;

{Subclause 1-1has been added to clause 14, Section VI under Law No. 1789-VIII of 20 December 2016; as amended by Law No. 2233-VIII of 07 December 2017}

2) the funds of the compulsory state social and pension insurance funds are serviced by the bodies of the Treasury of Ukraine in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

Payments are made in the following priority:

social benefits to insured persons (members of their families, other persons) who have the right to receive social security defined by law;

remuneration of employees of funds, accruals for remuneration of labour, payment for utilities and energy;

other payments;

{Subclause 2, clause 14, Section VI as revised by Law No. 79-VIII of 28 December 2014}

3) funds of compulsory state social and pension insurance shall submit reports on the implementation of budgets and estimates of the relevant funds to the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, the Accounting Chamber, the Ministry of Finance of Ukraine, and the Treasury of Ukraine quarterly and in the manner and terms established by the Ministry of Finance of Ukraine.

{Section VI has been supplemented with paragraph 14 under Law No. 4318-VI of 12 January 2012}

15. To allow the Kyiv City Council to borrow from the general fund of the budget of the city of Kyiv to repay debts on promissory notes to reimburse the difference in heat tariffs in 2012 as an exception to the provisions of Articles 72 and 74 of this Code.

{Section VI has been supplemented with paragraph 15 under Law No. 5428-VI of 16 October 2012}

15-1. To allow the Ministry of Finance of Ukraine to carry out government borrowing within the total cost of servicing and repayment of public debt in the relevant period in the first quarter of 2016 as an exception to the provisions of Article 41 of this Code.

{Section VI has been supplemented with paragraph 15-1 under Law No. 914-VIII of 24 December 2015}

16. It shall further be established that the norms of this Code applicable to the Autonomous Republic of Crimea and the city of Sevastopol are applied in a special manner for the period of the Law of Ukraine "On Ensuring the Rights and Freedoms of Citizens and the Legal Regime in the Temporarily Occupied Territory of Ukraine".

It shall further be established that the Cabinet of Ministers of Ukraine may determine the use of budget funds for support programmes of television and radio companies operating in the Autonomous Republic of Crimea and Sevastopol and providing information services as an exception to the provisions of clause 11, part one, Article 87 of this Code.

{Clause 16, Section VI has been supplemented with paragraph 2 under Law No. 1759-VIII of 17 November 2016; as amended by Laws No. 2241-VIII of 07 December 2017, No. 2233-VIII of 07 December 2017}

It shall further be established that before the return of the temporarily occupied territory of Ukraine under the general jurisdiction of Ukraine:

{Clause 16, Section VI has been supplemented with paragraph 3 under Law No. 1081-IX of 15 December 2020}

The Treasury of Ukraine opens accounts for revenues to the local budgets of the Autonomous Republic of Crimea and the city of Sevastopol to credit payments for local taxes and fees incurred before the date of temporary occupation, defined by the Law of Ukraine "On Ensuring the Rights and Freedoms of Citizens and occupied territory of Ukraine ", by taxpayers – residents who have taxable objects located in the temporarily occupied territory of Ukraine, based on the information and data of the central executive body implementing tax policy;

{Clause 16, Section VI has been supplemented with paragraph 4 under Law No. 1081-IX of 15 December 2020}

as an exception to the provisions of clause 3, part two, Article 67-1 and paragraph two, part two, Article 78 of this Code, the Treasury of Ukraine refunds funds erroneously or excessively credited to the local budgets of the Autonomous Republic of Crimea and Sevastopol to such accounts, controlling the collection of budget revenues.

{Clause 16, Section VI has been supplemented with paragraph 5 under Law No. 1081-IX of 15 December 2020}

{Section VI has been supplemented with paragraph 16 under Law No. 1636-VII of 12 August 2014}

17. It shall further be established that:

1) receipt of accrued amounts for the last reporting (tax) period of 2014, tax debt, return of erroneously or overpaid amounts from:

excise tax on securities disposal transactions and derivative transactions,

fees for the development of viticulture, horticulture and hop growing,

fees for certain types of business activities,

{Paragraph 5, sub-clause 1, clause 17, Section VI has been deleted under Law No. 176-VIII of 10 February 2015}

{Paragraph 6, sub-clause 1, clause 17, Section VI has been deleted under Law No. 176-VIII of 10 February 2015}

are credited (carried out) to/from the state and/or local budgets in the manner and under the conditions in force until 1 January 2015.

In case of insufficiency of the special fund of local budgets for the return of erroneously or overpaid amounts from the fee for carrying out certain types of business activities, such return is made at the expense of the general fund of the relevant local budget;

{Sub-clause 1, clause 17, Section VI has been supplemented with paragraph 8 under Law No. 2233-VIII of 07 December 2017}

2) receipt of accrued amounts for the last reporting (tax) period of 2014, tax debt, return of erroneously or overpaid amounts from:

collection in the form of a target surcharge to the current tariff for electricity and heat, except for electricity produced by qualified co-generation units – as an excise tax on excisable goods (products) produced in Ukraine for electricity,

environmental tax for air emissions of pollutants from mobile sources of pollution from:

– trade in the customs territory of Ukraine with fuel of own production and/or produced from toll raw materials – as an excise tax on excisable goods (products) produced in Ukraine from other oil products,

– import of fuel into the customs territory of Ukraine – as an excise tax on excisable goods (products) imported from the customs territory of Ukraine from other oil products,

subsoil use fees – as rent for subsoil use,

fee for the use of radio frequency resource of Ukraine – as a rent for the use of radio frequency resource of Ukraine,

fee for special use of water – as a rent for special use of water,

fee for special use of forest resources – as a rent for special use of forest resources,

fee for the first registration of a vehicle – as an excise tax on excisable goods (products) produced in Ukraine or imported into the customs territory of Ukraine,

payment for land – as a property tax,

fixed agricultural tax – as a single tax for agricultural producers

are credited (carried out) to/from the state and/or local budgets in the proportions established by the norms of this Code, effective from 1 January 2015.

{Section VI has been supplemented with paragraph 17 under Law No. 79-VIII of 28 December 2014}

17-1. It shall further be established that the receipt of accrued amounts for the last reporting (tax) period of 2015, tax debt, return of erroneously or overpaid amounts from rent for the transit transportation of natural gas pipelines through Ukraine and collection in the form of a target surcharge to the current tariff for natural gas for consumers all forms of ownership are credited (carried out) to/from the state budget in the manner and on the terms that were in effect until 1 January 2016.

{Section VI has been supplemented with paragraph 17-1 under Law No. 914-VIII of 24 December 2015}

17-2. It shall further be established that the receipt of accrued amounts for the last reporting (tax) period of 2017, tax debt and return of erroneously or overpaid amounts until 31 December 2017 from the rent for the use of subsoil for the extraction of natural gas, oil and gas condensate (except overpaid amounts) defined in paragraph two of this clause) are credited (carried out) to/from the state budget in the manner and under the conditions in force until 1 January 2018 as an exception to the provisions of clause 5-1, part two, Article 29, clause 4-2, part one, Article 64 and clause 4-1, part one, Article 66 of this Code.

{Paragraph one, clause 17-2, Section VI as amended by Law No. 1081-IX of 15 December 2020}

Overpaid amounts until 31 December 2017 for tax liabilities on rent for the use of subsoil for the extraction of natural gas, oil and gas condensate, which will be accrued for the reporting (tax) periods starting from 1 January 2018, are subject to distribution between state and local budgets in accordance with the standards set by this Code, in the manner prescribed by the Cabinet of Ministers of Ukraine.

{Section VI has been supplemented with paragraph 17-2 under Law No. 2233-VIII of 07 December 2017}

17-3. It shall further be established that the return of funds erroneously or excessively credited to the state and/or local budgets from a single account due to technical and/or methodological errors when forming the register of payments from the single account in the context of a single-payer as part of the consolidated register of payments from the single account in accordance with the Tax Code of Ukraine, carried out by the Treasury of Ukraine upon notification of the central executive body implementing state tax policy (without the approval of relevant local financial authorities in case of refund from local budgets) as an exception to the provisions of part two, Article 45 and part two, Article 78 of this Code.

{Section VI has been supplemented with paragraph 17-3 under Law No. 1081-IX of 15 December 2020}

18. It shall further be established that the programme-target method in the budget process at the level of local budgets, which have a relationship with the state budget, is used, starting with the drafting of local budgets for 2017.

The programme-target method in the budget process at the level of local budgets, which have no relationship with the state budget, is used starting from the drafting of such local budgets for 2019.

{Clause 18, Section VI has been supplemented with paragraph 2 under Law No. 2233-VIII of 07 December 2017}

{Section VI has been supplemented with paragraph 18 under Law No. 79-VIII of 28 December 2014}

19. Provide a stabilisation subsidy (as an additional subsidy from the state budget to local budgets) in the law on the State Budget of Ukraine until the completion of the unification process of territorial communities in accordance with the Law of Ukraine "On Voluntary Association of Territorial Communities".

{Paragraph one, clause 19, Section VI as amended by Law No. 176-VIII of 10 February 2015; as revised by Law No. 2233-VIII of 07 December 2017}

The procedure and conditions for granting a stabilisation subsidy are determined by the Cabinet of Ministers of Ukraine.

{Paragraph 2, clause 19, Section VI as amended by Law No. 2233-VIII of 07 December 2017}

{Section VI has been supplemented with paragraph 19 under Law No. 79-VIII of 28 December 2014}

{Clause 20, Section VI has been deleted under Law No. 907-IX of 17 September 2020 – enters into force on 1 January 2021}

20-1. It shall further be established that the expenditures specified in sub-clause "e", clause 2, part one, Article 89 of this Code may be carried out from regional budgets in terms of staff training on the terms of a regional order for the needs of the entire region.

{Paragraph one, clause 20-1, Section VI as amended by Law No. 2233-VIII of 07 December 2017}

At the request of the city council of the city territorial community with the administrative center in the city of regional significance – the regional center, the regional council decides to transfer funds for such expenditures to the city council of the city territorial community with the administrative center in the city of regional significance – the regional center and approves intergovernmental budget transfers from the regional budget of the budget of the city territorial community with the administrative center in the city of regional value – the regional center. The amounts of the specified interbudgetary transfers are defined according to the formula which is confirmed by the corresponding regional council in the annexe to the decision on the regional budget.

{Paragraph 2, clause 20-1, Section VI as amended by Law No. 293-IX of 14 November 2019; as revised by Laws No. 907-IX of 17 September 2020, No. 1081-IX of 15 December 2020}

In some regions (according to the list determined by the Cabinet of Ministers of Ukraine) for the period of the pilot project implementation on regarding the expenditures from regional budgets for training services on the terms of regional order in vocational (technical) education institutions and other state and/or communal property located on the territory of city territorial communities with an administrative center in cities of regional significance – regional centers, as an exception to the provision of sub-clause "e", clause 2, part one, Article 89 of this Code, the city council of a city territorial community with an administrative center – the regional center decides on the transfer of funds for such expenditures to the regional council (in amounts determined in proportion to the number of students whose place of registration is the city territorial community with the administrative center in the city of regional importance – the regional center, based on average costs per student) and approves the amounts of inter-budget transfers in the city budget from the budget of the city territorial community with the administrative center in the city of regional significance – the regional center of the regional budget.

{Clause 20-1 Section VI, has been supplemented with paragraph 3 under Law No. 293-IX of 14 November 2019; as revised by Laws No. 907-IX of 17 September 2020, No. 1081-IX of 15 December 2020}

{Section VI has been supplemented with paragraph 20-1 under Law No. 1789-VIII of 20 December 2016}

21. It shall further be established that repayment of arrears on medium-term loans (except for arrears of budgets of the Autonomous Republic of Crimea) to the state budget, which is registered in the Treasury of Ukraine, is not carried out until the legislative settlement of this issue.

{Section VI has been supplemented with paragraph 21 under Law No. 79-VIII of 28 December 2014}

22. It shall further be established that in the conditions of martial law:

1) the following provisions of this Code are not applied:

paragraph three, part one, Article 4;

Article 23 in respect to the obligation to agree with the Committee of the Verkhovna Rada of Ukraine on Budget on the decision of the Cabinet of Ministers of Ukraine on the redistribution of budget expenditures and the loans provision from the budget;

part three, Article 24;

part three, Article 27;

part one, Article 52;

part two, Article 54;

Article 55;

2) The Cabinet of Ministers of Ukraine may make decisions:

in agreement with the Supreme Commander-in-Chief of the Armed Forces of Ukraine on reducing expenditures and lending to the state budget and directing them to the reserve fund of the state budget for use by the Armed Forces of Ukraine, other military formations, law enforcement and other state bodies involved in repelling armed aggression, ensuring the inviolability of the state border and protection of the state (before the beginning of the work of Verkhovna Rada of Ukraine);

on the procedure for application and size of state social standards and guarantees, based on the available financial resources of the state and local budgets and funds of the obligatory state social and pension insurance;

3) inter-budgetary relations are regulated in accordance with the law on the State Budget of Ukraine for the relevant period based on the principles ensuring the implementation by public authorities, authorities of the Autonomous Republic of Crimea, local governments of tasks and functions assigned to them in such period;

4) the exercise of powers by the bodies of the Treasury of Ukraine in the relevant territory of Ukraine may be carried out in a special regime in the manner prescribed by the Cabinet of Ministers of Ukraine.

{Section VI has been supplemented with paragraph 22 under Law No. 79-VIII of 28 December 2014}

23. It shall further be established that part three, Article 24 of this Code is not applied in the case of implementation in accordance with the law of measures for partial mobilisation.

{Section VI has been supplemented with paragraph 23 under Law No. 79-VIII of 28 December 2014}

23-1. It shall further be established that the provisions of part two, Article 18 of this Code are not applied in the following cases:

1) the imposition of martial law in Ukraine or in some of its localities;

2) introduction of a state of emergency in Ukraine or in some of its localities;

3) conducting an anti-terrorist operation and/or a Joint Forces Operation on the territory of Ukraine.

{Sub-clause 3, clause 23-1, Section VI as amended by Law No. 2621-VIII of 22 November 2018}

{Section VI has been supplemented with paragraph 23-1 under Law No. 1789-VIII of 20 December 2016}

24. It shall further be established that the implementation of the state budget and local budgets in the settlements of Donetsk and Luhansk regions, on which territory public authorities temporarily do not exercise their powers, which list is approved by the Cabinet of Ministers of Ukraine, is carried out taking into account the following features:

{Paragraph one, clause 24, Section VI as amended by Law No. 714-VIII of 06 October 2015}

1) expenditures of the state budget, including part of transfers from the state budget to local budgets, are carried out after the return of territories under the control of state authorities;

2) making transfers to local budgets provided for in the law on the State Budget of Ukraine shall be carried out in accordance with the procedure approved by the Cabinet of Ministers of Ukraine;

3) by decisions of the President of Ukraine, relevant public authorities or their officials, a special procedure for the activities of participants in the budget process in the relevant territory of Ukraine may be introduced and/or their activities may be suspended, resumed, relocated, reorganised, liquidated;

4) temporarily, until the return of settlements under the control of state authorities, the balances of local budgets of such settlements, which are accounted for as of 1 January 2016 on accounts in the Treasury of Ukraine, are credited to the special fund of relevant regional budgets of Donetsk and Luhansk regions. Balances of funds are transferred by the bodies of the Treasury of Ukraine and are reflected by them in accounting and reporting on the local budgets implementation according to the budget financing classification. The balances of funds credited to the regional budgets are directed to:

restoration of social and transport infrastructure, housing, livelihood systems, including their maintenance, and socio-economic development of Donetsk and Luhansk regions;

repayment from the regional budget of the Donetsk region of the local debt of the Donetsk City Council arising on a loan obtained from the public joint-stock company "State Export-Import Bank of Ukraine" (loan agreement No. 151110К26 of 5 November 2010). To authorize Donetsk Regional State Administration, the Donetsk Regional Military-Civil Administration to ensure the repayment of the debt of the Donetsk City Council on such a loan.

Lists of facilities and activities that will be carried out at the expense of these balances are approved by the relevant regional state administrations, regional military-civil administrations. However, such lists may not include facilities and activities in certain areas, cities, towns and villages, where public authorities are temporarily not exercising their powers, and in settlements located on the confrontation line. The lists of objects and measures to be carried out at the expense of the specified balances of funds approved by the relevant regional state administrations, regional military-civil administrations shall be agreed by the Cabinet of Ministers of Ukraine.

{Paragraph 8, clause 24, Section VI as amended by Law No. 2233-VIII of 07 December 2017}

Starting from 1 January 2017, the balances of local budgets of such settlements, which are accounted for as of each reporting date on the accounts in the Treasury of Ukraine, are credited to the special fund of the respective regional budgets of Donetsk and Luhansk regions. Balances are transferred by the Treasury of Ukraine on a monthly basis (by the 10th day of the month following the reporting month), reflected by them in accounting and reporting on the implementation of local budgets according to the classification of budget financing and sent to facilities and activities formed taking into account paragraphs two and four of this sub-clause.

{Sub-clause 4, clause 24, Section VI has been supplemented with paragraph 5 under Law No. 1789-VIII of 20 December 2016}

{Clause 24, Section VI has been supplemented with sub-clause 4 under Law No. 714-VIII of 06 October 2015; as revised by Law No. 1406-VIII of 02 June 2016}

{Section VI has been supplemented with paragraph 24 under Law No. 79-VIII of 28 December 2014}

24-1. It shall further be established that the bodies of the Treasury of Ukraine carry out the return (transfer) of funds erroneously or excessively credited to the local budgets of settlements in Donetsk and Luhansk regions, on which territory public authorities temporarily do not exercise their powers, which list is approved by the Cabinet of Ministers of Ukraine upon submission (conclusion) of the bodies controlling the collection of budget revenues, agreed with the Donetsk and Luhansk regional military-civil administrations, respectively.

{Paragraph one, clause 24-1, Section VI as amended by Law No. 1081-IX of 15 December 2020}

Transfer between types of revenues and budgets of funds erroneously and/or excessively credited to local budgets of settlements of Donetsk and Luhansk regions, on which territory of public authorities temporarily do not exercise their powers, which list is approved by the Cabinet of Ministers of Ukraine according to the conclusion of the tax authorities (without appropriate agreement with the Donetsk and Luhansk regional military-civil administrations), submitted on the date of formation for the register of payments from a single account in the context of a separate payer as part of the consolidated register of payments from a single account in accordance with the Tax Code of Ukraine.

{Clause 24-1, Section VI has been supplemented with paragraph 2 under Law No. 1081-IX of 15 December 2020}

It shall further be established that the return of funds erroneously or excessively credited to the local budgets of settlements of Donetsk and Luhansk regions, on which territory public authorities temporarily do not exercise their powers, which list is approved by the Cabinet of Ministers of Ukraine, from a single account due to technical and/or methodological errors when forming the register of payments from the single account in the context of a separate payer as part of the consolidated register of payments from the single account in accordance with the Tax Code of Ukraine, the Treasury of Ukraine notifies the central executive body implementing state tax policy (without appropriate agreement with Donetsk and Luhansk regional military-civil administrations).

{Clause 24-1, Section VI has been supplemented with paragraph 2 under Law No. 1081-IX of 15 December 2020}

{Section VI has been supplemented with paragraph 24-1 under Law No. 1789-VIII of 20 December 2016; as amended by Law No. 293-IX of 14 November 2019}

24-2. Temporarily, until the settlements of Donetsk and Luhansk oblasts return under the control of the state authorities, in the horizontal equalization of tax capacity of local budgets (in accordance with Articles 98 and 99 of this Code) and in the calculation of additional subsidies for state budget expenditures for education and security institutions health (in accordance with Article 103-6 of this Code) the population additionally takes into account the number of registered internally displaced persons according to the central executive body, which ensures the formation and implementation of state policy in the areas of social policy, labour relations, social protection.

{Section VI has been supplemented with paragraph 24-2 under Law No. 2233-VIII of 07 December 2017; as amended by Law No. 293-IX of 14 November 2019}

25. Control over the use of budget funds for own revenues of state and municipal institutions of special professional and higher education, research institutions and cultural institutions received as payment for services provided by them in accordance with the main activity, charitable contributions and grants shall be carried out in the manner approved by the Cabinet of Ministers of Ukraine.

{Section VI has been supplemented with paragraph 25 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 293-IX of 14 November 2019}

26. {A separate provision of clause 26, Section VI in the part which provides that the rules and regulations of Article 81 of the Law of Ukraine "On the Prosecutor's Office" of 14 October 2014 No. 1697-VІІ ammended in the manner and amounts established by the Cabinet of Ministers of Ukraine, based on available financial resources of state and local budgets and budgets of compulsory state social insurance, recognised as not complying with the Constitution of Ukraine (as unconstitutional) in accordance with the Decision of the Constitutional Court No. 6-р/2020 of 26 March 2020} {A separate provision of clause 26, Section VI in the part which provides that the rules and regulations of Articles 12, 13, 14, 15 and 16 Law of Ukraine "On the status of war veterans, guarantees of their social protection" are applied in the manner and amounts established by the Cabinet of Ministers of Ukraine, based on available financial resources of state and local budgets and budgets of compulsory state social insurance, recognised as not complying with the Constitution of Ukraine (as unconstitutional) in accordance with the Decision of the Constitutional Court No. 3-р/2020 of 27 February 2020} It shall further be established that provisions of Articles 20, 21, 22, 23, 30, 31, 37, 39, 48, 50, 51, 52 and 54 of the Law of Ukraine"On the Status and Social Protection of Citizens Affected by the Chornobyl Accident" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1992, No. 13, Article 178); Articles 5 and 6 of the Law of Ukraine "On the social protection of children of war" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2005, No. 4, Article 94); Law of Ukraine "On the indexation of monetary income of the population" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2003, No. 15, Article 111); parts one and two of Article 9, Articles 14, 22, 36, 37 and 43 of the Law of Ukraine "On the pension provision of persons discharged from military service and certain other persons" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1992, No. 29, Article 399); part 2, Article 12, clause "j", part 1, Article 77 Fundamentals of the legislation of Ukraine on health care (The Official Bulletin of the Verkhovna Rada of Ukraine, 1993 р., No. 4, ст. 19); Articles 12, 13, 14, 15 and 16 of the Law of Ukraine "On the status of war veterans, guarantees of their social protection" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1993, No. 45, Article 425); Article 9 of the Law of Ukraine "On the basic principles of social protection of labour veterans and other elderly citizens in Ukraine" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1994, No. 4, Article 18); Article 43 of the Mining Law of Ukraine (The Official Bulletin of the Verkhovna Rada of Ukraine, 1999 р., No. 50, ст. 433); Articles 61, 62, 63 and 64 Law of Ukraine "On the Victims of Nazi Persecution" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2000, No. 24, Article 182); Article 4 of the Law of Ukraine "On the establishment of state aid to victims of mass protests and members of their families" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2014, No. 12, Article 187); Law of Ukraine "On Higher Education" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2014, No. 37-38, Article 2004); Law of Ukraine "On education" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2017, No. 38-39, Article 380); paragraphs two and three, part 2 of Article 24, part six of Article 27, part five of Article 54, part 1 of Article 63, part 1 of Article 66, Articles 67, 68, 72, sub-clause 16, clause 2, Section XIV "Final and transitional provisions" of the Law of Ukraine "On professional initial higher education" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2019, No. 30, Article 119); Law of Ukraine "On complete general secondary education" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2020, No. 31, Article 226); paragraph one, part two, paragraphs two, four and five, part 3 of Article 18, paragraph three, five, part 4 of Article 21, paragraph one, part one,, part 3 of Article 22 of the Law of Ukraine "On extracurricular education" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2000, No. 46, Article 393); part 2 of Article 14, paragraph two, part 3 of Article 30, part five of Article 35 of the Law of Ukraine "On Preschool Education" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2001, No. 49, Article 259); paragraph two, part 1 of Article 26 of the Law of Ukraine "On employment" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2013, No. 24, Article 243); Article 5 of the Law of Ukraine "On increasing the prestige of mining" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2008, No. 42-43, Article 293); part 3 of Article 22, paragraph two, part one, part 3 of Article 29 of the Law of Ukraine "On Culture" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2011, No. 24, Article 168); Article 14 of the Law of Ukraine "On Public Television and Radio Broadcasting of Ukraine" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2014, No. 27, Article 904); Article 10 of the Law of Ukraine "On the system of foreign broadcasting of Ukraine" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2016, No. 4, Article 37); Article 44 of the Law of Ukraine "On trade unions, their rights and guarantees of activity" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1999, No. 45, Article 397); part 3 of Article 119, Article 250 Code of Labour Laws of Ukraine (Bulletin of Verkhovna Rada of the UkrSSR, 1971, Annex to No. 50, Article 375);, part 2 of Article 13, part 1 of Article 14, paragraph seven, part 2 of Article 21 of the Law of Ukraine "On theaters and theatrical work" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2005, No. 26, Article 350); paragraphs eight and nine, part 2 of Article 28 of the Law of Ukraine "On Museums and Museum Affairs" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1995, No. 25, Article 191);, part 4 of Article 19 of the Law of Ukraine "On labour protection" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2003, No. 2, Article 10); Law of Ukraine "On scientific and scientific-technical activity" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2016, No. 3, Article 25); parts three, four and five of Article 26 of the Law of Ukraine "On Physical Culture and Sports" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2010, No. 7, Article 50); clause 6, Section VI "Final and Transitional Provisions" of the Law of Ukraine "On Free Legal Aid" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2011, No. 51, Article 577); paragraph five, part 3 of Article 5, part five Article 19 Law of Ukraine "On the protection of childhood" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2001, No. 30, Article 142); paragraph two, clause 30, part 1 of Article 26 of the Law of Ukraine "On local self-government in Ukraine" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1997, No. 24, Article 170); the second sentence part five, Article 6 of the Law of Ukraine "On the priority of social development of the village and agro-industrial complex in the national economy" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1992, No. 32, Article 453); paragraph three, part 2 of Article 47 Law of Ukraine "On vocational education" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1998, No. 32, Article 215);, part 3 of Article 15, part six, Article 30 of the Law of Ukraine "On Libraries and Library Affairs" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2000, No. 23, Article 177); parts four, five, six, Article 14 of the Law of Ukraine "On state support of mass media and social protection of journalists" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1997, No. 50, Article 302);, part 1, Article 25 of the Law of Ukraine "On the recovery and recreation of children" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2008, No. 45, Article 313);, part 1, Article 21 of the Law of Ukraine "On Military Duty and Military Service" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2006, No. 38, Article 324); paragraphs three and four, sub-clause 8, clause 8, Section I of the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Concerning the Improvement of Defence and Mobilisation Issues During Mobilisation" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2014, No. 29, Article 942); Article 91, first and second paragraphs,"On Amendments to Certain Legislative Acts of Ukraine Concerning the Improvement of Defense and Mobilization Issues During Mobilization" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2014, No. 29, Article 942); Article 91, paragraphs one and two of the Law of Ukraine "On social and legal protection of servicemen and members of their families" (The Official Bulletin of the Verkhovna Rada of Ukraine, 1992, No. 15, Article 190); part seven, Article 21 of the Law of Ukraine "On the National Guard of Ukraine" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2014, No. 17, Article 594), paragraph six, part 3, Article 6 of the Law of Ukraine "On Mobilisation Training and Mobilisation" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2005, No. 16, Article 255); Articles 6 and 7 of the Law of Ukraine "On the renewal of the rights of persons deported on national grounds" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2014, No. 26, Article 896); Article 81, parts sixteen, seventeen, eighteen Article 86, Clauses 13, 14, Section XIII The "Transitional Provisions" of the Law of Ukraine of 14 October 2014 "On the Prosecutor's Office" are applied in the manner and amounts established by the Cabinet of Ministers of Ukraine, based on available financial resources of state and local budgets and budgets of compulsory state social insurance.

{Section VI has been supplemented with paragraph 26 under Law No. 79-VIII of 28 December 2014; as amended by Laws No. 1789-VIII of 20 December 2016, No. 2233-VIII of 07 December 2017, No. 293-IX of 14 November 2019, No. 1081-IX of 15 December 2020}

27. It shall further be established that in 2015, in case of formation of new state bodies, which activities are directed and coordinated by the Cabinet of Ministers of Ukraine directly, the Cabinet of Ministers of Ukraine may designate such state bodies as the main managers of state budget funds (responsible executors of budget programmes) and open new budget programmes unless otherwise provided by the law on the State Budget of Ukraine.

{Section VI has been supplemented with paragraph 27 under Law No. 79-VIII of 28 December 2014; as amended by Law No. 212-VIII of 02 March 2015}

28. It shall further be established that:

{Paragraph 2, clause 28, Section VI has been deleted under Law No. 2646-VIII of 06 December 2018}

{Paragraph 3, clause 28, Section VI has been deleted under Law No. 2646-VIII of 06 December 2018}

provisions of paragraphs five to fifteen, part three, Article 2, paragraph five, part one, Article 8, Articles 12-1, 13, 15 and 17 of the Law of Ukraine "On Investment Activity" to investment projects implemented with state loans (loans ) from foreign states, foreign financial institutions and international financial organizations are not applied;

{Clause 28, Section VI has been supplemented with paragraph 4 under Law No. 2646-VIII of 06 December 2018}

the procedure for preparation, implementation of investment projects implemented by the state attracting loans from foreign countries, foreign financial institutions and international financial organizations is determined by the Cabinet of Ministers of Ukraine taking into account the provisions of laws of Ukraine governing the conclusion, implementation and termination of international agreements of Ukraine.

{Clause 28, Section VI has been supplemented with paragraph 5 under Law No. 2646-VIII of 06 December 2018}

{Section VI has been supplemented with paragraph 28 under Law No. 288-VIII of 07 April 2015}

28-1. It shall further be established that the encumbrance of property or other security for the fulfilment of obligations provided by business entities on loans (borrowings) involved by the state or state guarantees in accordance with part five, Article 17 of this Code is public. State registration of such encumbrances on movable property and change of information about them is carried out in the manner prescribed by law, at the request of the Ministry of Finance of Ukraine or other central executive body receiving property provided by economic entities in accordance with this Code.

{Section VI has been supplemented with paragraph 28-1 under Law No. 293-IX of 14 November 2019}

29. The Cabinet of Ministers of Ukraine, the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils shall include indicators of reduction by the key spending units of utilities and energy consumption due to the implementation of energy saving measures within the revenues of the budget, as well as the implementation of energy service in energy-saving programmes.

{Section VI has been supplemented with paragraph 29 under Law No. 328-VIII of 09 April 2015}

30. It shall further be established that the provision on decisions of the Authorized Body on State Aid, defined in part four, Article 35 of this Code, applies from the formation of the draft State Budget of Ukraine for 2019.

{Section VI has been supplemented with paragraph 30 under Law No. 416-VIII of 14 May 2015}

31. It shall further be established that part six, Article 16, part seven, Article 17 and part seven, Article 74 of this Code do not apply to debt obligations specified in Articles 1 and 2 of the Law of Ukraine "On Peculiarities of Transactions with State, State-Guaranteed Debt and Local debt ", during the validity of the decision of the Cabinet of Ministers of Ukraine or the city council, adopted in accordance with Articles 1 and 2 of this Law.

{Section VI has been supplemented with paragraph 31 under Law No. 437-VIII of 19 May 2015}

32. Part nine, Article 45 of this Code shall apply from the drafting of the State Budget of Ukraine for 2016.

{Section VI has been supplemented with paragraph 32 under Law No. 542-VIII of 18 June 2015}

{Clause 33, Section VI has been deleted under Law No. 1081-IX of 15 December 2020}

34. It shall further be established that the state or city territorial community carries out their:

1) the obligation to make payments (hereinafter – payment obligations) arising from transactions with public debt on public external borrowings, state-guaranteed debt on external credits (loans) or with local debt on local external borrowings according to the list in accordance with Annex to the Law of Ukraine "On Peculiarities of Transactions with State Debt Guaranteed and Local Debt" on exchange (change of terms of existing loans), issuance and sale of relevant debt obligations, if the terms of relevant debt obligations are changed due to such transactions; and

2) payment obligations of the state on state external borrowings and state-guaranteed debt or on local debt in the case of a city territorial community, not included in the list in accordance with the Annexe to the Law of Ukraine "On Peculiarities of Transactions with State, State-Guaranteed Debt and Local Debt";

before fulfilment of payment obligations of the state on state external borrowings and the state-guaranteed debt or payment obligations of the city territorial community on local debt which are included in the list according to the annexe to the Law of Ukraine "On Peculiarities of Transactions with State, State-Guaranteed Debt and Local Debt", in respect of which no transactions have been made to exchange (change the terms of existing loans), issue or sell the relevant debt obligations and not changed the terms of the relevant debt obligations (hereinafter – lower priority obligations), provided that payments on relevant obligations with lower priority are temporarily suspended in accordance with the legislation of Ukraine.

If any existing or future payment obligation of the state on the state external borrowing, the state guarantee or the city territorial community on the local borrowing provides a condition that the payment obligations of the state or the city territorial community have the same priority as other unsecured and non-subordinated payment obligations of the state or, accordingly, the city territorial community, such a condition does not oblige the state or the city territorial community to carry out:

payments in equal or proportional parts under such payment obligation of the state or city territorial community and other payment obligations of the state or city territorial community;

payments under any payment obligation of the state or city territorial community at the same time as payment or as a precondition for payment under any other payment obligation of the state or city territorial community.

{Section VI has been supplemented with paragraph 34 under Law No. 700-VIII of 17 September 2015}

35. The right to place government derivatives and/or make transactions with government derivatives, including their exchange, issue, purchase, redemption and sale, belongs to the state in the person of the Head of the Debt Agency of Ukraine in agreement with the Minister of Finance of Ukraine. The terms for placement of government derivatives and transactions with government derivatives are determined by the Cabinet of Ministers of Ukraine.

{Paragraph one, clause 35, Section VI as amended by Law No. 293-IX of 14 November 2019; as revised by Law No. 1081-IX of 15 December 2020}

During the placement of government derivatives and/or transactions with government derivatives, the Chairman of the Debt Agency of Ukraine in agreement with the Minister of Finance of Ukraine has the right to undertake obligations on behalf of Ukraine related to such placement of government derivatives and/or such transactions with government derivatives, including the waiver of sovereign immunity in possible lawsuits related to the payment of government derivatives in accordance with the terms of their placement.

{Paragraph 2, clause 35, Section VI as amended by Law No. 293-IX of 14 November 2019; as revised by Law No. 1081-IX of 15 December 2020}

Expenditures on payments on government derivatives, as well as expenses related to transactions with government derivatives, are made by the Debt Agency of Ukraine in accordance with the terms of placement for government derivatives and/or transactions with government derivatives, as well as regulations approving the terms of placement government derivatives and/or transactions with government derivatives, regardless of the amount of funds specified for this purpose in the law on the State Budget of Ukraine.

{Paragraph 3, clause 35, Section VI as amended by Law No. 293-IX of 14 November 2019; as revised by Law No. 1081-IX of 15 December 2020}

If the expected amount of expenditures on payments on government derivatives exceeds the amount specified in the law on the State Budget of Ukraine for this purpose, the Ministry of Finance of Ukraine shall immediately inform the Cabinet of Ministers of Ukraine and the Accounting Chamber. The Cabinet of Ministers of Ukraine shall immediately inform the Verkhovna Rada of Ukraine of the expected excess of such expenditures and submit proposals for making amendments tothe Law on the State Budget of Ukraine within two weeks.

{Paragraph 4, clause 35, Section VI as revised by Law No. 293-IX of 14 November 2019}

{Section VI has been supplemented with paragraph 35 under Law No. 700-VIII of 17 September 2015}

36. It shall further be established that the sum (amount) of net profit (income) for the purpose of a net profit (income) payment provided for in Article 29 of this Code and Articles 5, 11-1 of the Law of Ukraine "On Management of State Property" shall be reduced by the amount determined in accordance with clause 36, sub-section 4, Section XX of the Tax Code of Ukraine during transactions with the state debt on the state external borrowings and the debt guaranteed by the state on external credits (loans) according to the conditions approved by the Cabinet of Ministers of Ukraine.

{Section VI has been supplemented with paragraph 36 under Law No. 700-VIII of 17 September 2015}

{Clause 37, Section VI has been deleted under Law No. 293-IX of 14 November 2019}

38. It shall further be established that the provisions of part one, Article 79 of this Code on the formation and implementation of the budget of the rural, settlement, city territorial community and the district budget for 2021 are applied taking into account the following features:

1) if no decision on the local budget for 2021 is made by 31 December 2020, the executive body of the local council, the district state administration has the right to spend local budget only for the purposes specified in the draft decision on the local budget for 2021 approved by the executive body local council, the district state administration and submitted to the local council. At the same time, the monthly budget allocations of the local budget may not exceed 1/12 of the budget expenditures provided for in the draft decision on the local budget for 2021, approved by the executive body of the local council, district state administration and submitted to the local council (except for cases provided for in part six Article 16 and part four, Article 23 of this Code, as well as taking into account the need for protected local budget expenditures), taking into account intergovernmental transfers defined by the Law of Ukraine "On State Budget of Ukraine for 2021" (in case of untimely entry into force of such law – draft law on the State Budget of Ukraine for 2021, submitted by the Cabinet of Ministers of Ukraine to the Verkhovna Rada of Ukraine);

2) until the acquisition of powers by the village, settlement, city council, elected territorial community, which territory is approved by the Cabinet of Ministers of Ukraine in 2020 in accordance with the Law of Ukraine "On Local Self-Government in Ukraine" (hereinafter – the formed territorial community), functions on drafting the budget of the formed territorial community for 2021 and execution of such budget are carried out by the executive body of the local council of the territorial community, on the territory of which the administrative centre of the formed territorial community is located. The expenditures of the budget at the formed territorial community are carried out for the purposes specified in the draft decision on the budget of the formed territorial community for 2021, approved by the executive body of the local council of the territorial community, on which territory the administrative centre of the formed territorial community is located, in compliance with the requirements of sub-clause 1 of this clause and clause 39 of this section.

{Section VI has been supplemented with paragraph 38 under Law No. 837-VIII of 26 November 2015; as amended by Law No. 2233-VIII of 07 December 2017; as revised by LawNo. 1081-IX of 15 December 2020}

{Clause 33, Section VI has been deleted under Law No. 1081-IX of 15 December 2020}

{Clause 39, Section VI has been deleted under Law No. 907-IX of 17 September 2020}

39. District councils shall transfer from the joint ownership of territorial communities of villages, settlements, cities to the ownership of rural, settlement, city territorial communities of institutions and establishments located on their territory, in accordance with the division of expenditures between budgets defined by this Code. From 1 January 2021, expenditures for the operation of these institutions and establishments are planned and carried out from the budgets of such territorial communities.

{Clause 39 has been added to, Section VI under Law No. 1081-IX of 15 December 2020}

39-1. It shall further be established that the return (transfer) of taxes and fees and other income erroneously or excessively credited before 1 January 2021 (except as specified in clause 39-2 of this section) to:

district budget of the liquidated district, which territorial communities are included in several newly formed districts, is carried out by the Treasury of Ukraine from the district budget of the newly formed district, where the largest number of the available population of the liquidated district lived as of 1 January 2020, upon submission (conclusion) of the bodies controlling the collection of budget revenues, agreed with the relevant local financial authorities;

budgets of territorial communities of villages, their associations, settlements, cities, budgets of united territorial communities, which territories are disbanded and included in the territories of several formed territorial communities, are carried out by the Treasury of Ukraine from the budget of the formed territorial community, on which territory the administrative centre of the disbanded territorial community is located, upon submission (conclusion) of the bodies controlling the collection of budget revenues, agreed with the relevant local financial bodies.

{Section VI has been supplemented with paragraph 39-1 under Law No. 1081-IX of 15 December 2020}

39-2. Establish that taxes, fees and other income (except for personal income tax, defined in the paragraph two of this clause), erroneously or excessively credited to the district budget until 1 January 2021, which from 1 January 2021 do not belong to the district budget, are subject to return (transfer) by the Treasury of Ukraine from the budget of the territorial community, which from January 1, 2021 includes such types of income, upon submission (conclusion) of the bodies controlling the collection of budget revenues, agreed with the relevant local financial authorities.

Reimbursement (transfer) of overpaid amounts of personal income tax, which are credited to the district budget before 1 January 2021 and are subject to refund to an individual based on tax return for 2020 based on the recalculation of its total annual taxable income, is carried out by the Treasury Ukraine from the budget of the territorial community on which territory the tax address of such natural person is located, upon submission (conclusion) of the bodies controlling the collection of budget revenues, agreed with the relevant local financial authorities.

{Section VI has been supplemented with paragraph 39-2 under Law No. 1081-IX of 15 December 2020}

40. It shall further be established that the Ministry of Finance of Ukraine has the right to receive free information containing bank secrecy, personal data, and access to automated information and reference systems, registers and data banks, which holder (administrator) are state bodies or local governments, during the exercise of powers to control compliance with budget legislation in terms of verification and monitoring of pensions, benefits, privileges, subsidies, other social benefits, which are carried out at the expense of the state, local budgets, funds of mandatory state social and pension insurance, in order to ensure the targeting and prevention of appointment, accrual and/or illegal social benefits.

To receive and process such personal data, the Ministry of Finance of Ukraine does not require the consent of individuals, and the processing and protection of personal data is carried out in compliance with the legislation on personal data protection and in the manner prescribed by the Cabinet of Ministers of Ukraine.

The procedure for verification and monitoring of pensions, benefits, privileges, subsidies and other social benefits is determined by the Cabinet of Ministers of Ukraine.

{Section VI has been supplemented with paragraph 40 under Law No. 914-VIII of 24 December 2015; as amended by Law No. 1789-VIII of 20 December 2016; as revised by Law No. 2621-VIII of 22 November 2018}

41. To establish that the excise tax on fuel and vehicles produced in Ukraine, the excise tax on fuel and vehicles imported into the customs territory of Ukraine and the import duty on petroleum products and vehicles and tires to them, as an exception to the provisions of clauses 1-3, part three, Article 29 of this Code, are credited to the special fund of the state budget in 2018 in the amount of 50 per cent, and in the amount of 75 per cent in 2019.

{Section VI has been supplemented with paragraph 41 under Law No. 1763-VIII of 17 November 2016}

42. To establish that the annual amount of funds of the State Budget of Ukraine, which is directed to the state support of agricultural producers, is not more than 1 per cent of agricultural output in 2017-2021.

{Paragraph one, clause 42, Section VI as amended by Law No. 293-IX of 14 November 2019}

{Paragraph 2, clause 42, Section VI has been deleted under Law No. 293-IX of 14 November 2019}

{Section VI has been supplemented with paragraph 42 under Law No. 1789-VIII of 20 December 2016}

43. To establish that 13.44 per cent of excise tax on fuel produced in Ukraine and 13.44 per cent of excise tax on fuel imported into the customs territory of Ukraine, but not less than the amount of charges in 2016, the excise tax on the sale of fuel by retail trade entities, in the manner prescribed by the Cabinet of Ministers of Ukraine, are automatically credited to local government budgets in 2017 as an exception to the clauses 7 and 8, part two, Article 29 of this Code:

1) in the first half of 2017 – in proportion to the share of accruals according to the declarations of excise tax on sales of retail fuel for 2016 in the relevant territory in the total amount of such accruals for 2016 in Ukraine as a whole;

2) in the second half of 2017 – in proportion to the amount of fuel sold by retail trade entities in the relevant territory for the first half of 2017 in the total amount of such fuel sold in Ukraine as a whole for the first half of 2017.

{Section VI has been supplemented with paragraph 43 under Law No. 1789-VIII of 20 December 2016}

43-1. To establish that in 2018 and 2019, as an exception to the provisions of clauses 7 and 8, part two, Article 29 of this Code, 13.44 per cent of excise tax on fuel produced in Ukraine and 13.44 per cent of excise tax on fuel imported into the customs territory of Ukraine in the manner, determined by the Cabinet of Ministers of Ukraine, are credited to the general fund of local government budgets automatically:

1) in the first half of 2018 – in proportion to the amount of fuel sold by retail trade entities in the relevant territory for the second half of 2017 in the total amount of such fuel sold in Ukraine as a whole for the second half of 2017;

2) in the second half of 2018 – in proportion to the amount of fuel sold by retail trade entities in the relevant territory for the first half of 2018 in the total amount of such fuel sold in Ukraine as a whole for the first half of 2018.

3) in the first half of 2019 – in proportion to the amount of fuel sold by retail trade entities in the relevant territory for the second half of 2018 in the total amount of such fuel sold in Ukraine as a whole for the second half of 2018;

2) in the second half of 2019 – in proportion to the amount of fuel sold by retail trade entities in the relevant territory for the first half of 2019 in the total amount of such fuel sold in Ukraine as a whole for the first half of 2019.

{Section VI has been supplemented with paragraph 43-1 under Law No. 2233-VIII of 07 December 2017}

43-2. To establish that in 2020, as an exception to the provisions of clauses 1 and 2, part three, Article 29 of this Code, 13.44 per cent of excise tax on fuel produced in Ukraine and 13.44 per cent of excise tax on fuel imported into the customs territory of Ukraine in the manner, determined by the Cabinet of Ministers of Ukraine, are credited to the general fund of local government budgets automatically:

1) in the first half of 2020 – in proportion to the amount of fuel sold by retail trade entities in the relevant territory for the second half of 2019 in the total amount of such fuel sold in Ukraine as a whole for the second half of 2019;

2) in the second half of 2020 – in proportion to the amount of fuel sold by retail trade entities in the relevant territory for the first half of 2020 in the total amount of such fuel sold in Ukraine as a whole for the first half of 2020.

{Section VI has been supplemented with paragraph 43-2 under Law No. 293-IX of 14 November 2019}

44. It shall further be established that in 2017 in order to implement measures to introduce medium-term budget planning, as an exception to the provisions of paragraph 9, part 1 of Article 21, parts 1 and 3, Article 33 of this Code and, part 1 of Article 152 Rules of Procedure of the Verkhovna Rada of Ukraine approved by the Law of Ukraine "On the Rules of Procedure of the Verkhovna Rada of Ukraine" (The Official Bulletin of the Verkhovna Rada of Ukraine, 2010, Nos. 14-17, Article 133):

The Ministry of Finance of Ukraine together with other central executive bodies develops and submits to the Cabinet of Ministers of Ukraine an updated forecast of the State Budget of Ukraine for 2018 and 2019 and a draft Main Directions of Budget Policy for 2018-2020 by 1 June 2017, which are considered and approved by the Cabinet Ministers of Ukraine within two weeks from the date of their submission;

The Cabinet of Ministers of Ukraine shall submit a draft of the Main Directions of Budget Policy for 2018-2020 to the Verkhovna Rada of Ukraine no later than 15 June 2017.

{Section VI has been supplemented with paragraph 44 under Law No. 1974-VIII of 23 March 2017}

45. To establish that own receipts of the state budget managers which carried out the activity in the territory of the Autonomous Republic of Crimea and the city of Sevastopol accounted for in a single treasury account as of the date of disconnection of the electronic payment system of the National Bank of Ukraine may be used by such fund managers in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

{Section VI has been supplemented with paragraph 45 under Law No. 2233-VIII of 07 December 2017}

46. To establish that the amount of state budget expenditures on higher education is distributed among higher education institutions based on the formula developed by the central executive body forming and implementing the state policy in the field of education and approved by the Cabinet of Ministers of Ukraine, and has the following parameters:

{Paragraph one, clause 46, Section VI as amended by Law No. 293-IX of 14 November 2019}

the number of applicants for higher education by state order at the levels of higher education, forms of higher education and specialities and the ratio of the cost of educational services;

{Paragraph 2, clause 46, Section VI as amended by Law No. 293-IX of 14 November 2019}

{Paragraph 3, clause 46, Section VI has been deleted under Law No. 293-IX of 14 November 2019}

indicators of educational, scientific and international activities of higher education institutions.

{Paragraph 4, clause 46, Section VI as revised by Law No. 293-IX of 14 November 2019}

{Section VI has been supplemented with paragraph 46 under Law No. 2233-VIII of 07 December 2017}

47. To establish that part of the net profit, which in accordance with clause 17, part two, Article 29 of this Code and Article 11-1 of the Law of Ukraine "On Management of State Property" is subject to the State Budget of Ukraine by state unitary enterprises, managed by the National Academy of Sciences of Ukraine, remains at the disposal of such state unitary enterprises managed by the National Academy of Sciences of Ukraine, and is directed by them exclusively to conduct their own initiative scientific and scientific-technical activities, financial innovations and expansion of their own logistics bases by 2023 (inclusive).

{Section VI has been supplemented with paragraph 47 under Law No. 2621-VIII of 22 November 2018}

47-1. To establish that in 2021-2023 the funds received by institutions and organizations under the auspices of the National Academy of Sciences of Ukraine for gold, silver, platinum, platinum group metals, precious stones handed over in the form of scrap and waste, which in accordance with clause 54, part two, Article 29 of this Code are subject to direction to the State budget of Ukraine, remain at the disposal of such institutions and organizations and are used by them exclusively for carrying out the basic statutory activity.

{Section VI has been supplemented with paragraph 47-1 under Law No. 1081-IX of 15 December 2020}

48. It shall further be established that the measures of influence established by clause 2, part one, Article 117 of this Code, for violations of budget legislation committed in 2017-2018, defined by clauses 33 and 35, part one, Article 116 of this Code, do not apply to participants in the budget process due to the introduction as of 1 January 2017 of national regulations (standards) of accounting in the public sector for the preparation of financial statements and a new chart of accounts in the public sector.

{Section VI has been supplemented with paragraph 48 under Law No. 2646-VIII of 06 December 2018}

49. It shall further be established that:

1) the provisions of Article 75 (regarding the preparation of the local budget forecast) and Article 75-1 of this Code shall apply from 1 January 2020;

2) in 2019:

The Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive bodies of relevant local councils compile and approve forecasts for relevant local budgets for 2021 and 2022 in accordance with forecast and programme documents of economic and social development of Ukraine and the relevant territory, as well as the Budget Declaration approved in 2019;

the local budget forecast for 2021 and 2022 includes indicative forecast indicators for the local budget on the main types of incomes, financing, expenses and crediting, indicative forecast indicators of local debt and debt guaranteed by the Autonomous Republic of Crimea, regional council or city territorial community, as well as indicative indicators by the budget programmes providing the implementation of investment projects for several years;

the local budget forecast for 2021 and 2022 is submitted to the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local councils together with the draft decision on the local budget for 2020;

3) until the approval of the local budget forecast in accordance with Article 75-1 of this Code in order to make local borrowings in 2021 in accordance with Articles 16and 74 of this Code and provide local guarantees in accordance with Article 17 of this Code, Council of Ministers of the Autonomous Republic of Crimea the bodies of the relevant city councils approve the forecast of the relevant local budget for 2022 and 2023, formed in accordance with the forecast and programme documents of economic and social development of Ukraine and the relevant territory, including local budget indicators by main types of revenues, financing, expenditures and lending, including budget development, indicators of local debt and debt guaranteed by the Autonomous Republic of Crimea, regional council or city territorial community, as well as indicators of budget programmes that ensure the implementation of investment projects for several years.

{Clause 49 of Section VI has been supplemented with sub-clause 3 under Law No. 1081-IX of 15 December 2020}

{Section VI has been supplemented with paragraph 49 under Law No. 2646-VIII on 06 December 2018}

50. It shall further be established that before bringing the constituent documents of educational institutions in line with the requirements of the laws of Ukraine "On Education", "On Complete General Secondary Education" their financial support is carried out in accordance with the procedure in force in 2019, including the direction of educational subvention for wages with accruals of pedagogical workers in school departments of educational complexes "preschool educational institution – general educational institution", "general educational institution – preschool educational institution" and in evening (shift) schools.

{Section VI has been supplemented with paragraph 50 under Law No. 293-IX of 14 November 2019; as amended by Law No. 1081-IX of 15 December 2020}

51. It shall further be established that 60 per cent of the special fund in 2021 as an exception to the provisions of paragraph 21 of part four of Article 30 of this Code, which source is the income specified in paragraph 13-5, part three of Article 29 of this Code, shall be directed to the Ministry of Infrastructure ensuring the renewal of rolling stock for the carriage of passengers by rail and the modernization of the railway infrastructure for the development of passenger transport.

{Section VI has been supplemented with clause 51 under Law No. 1081-IX of 15 December 2020}

President of Ukraine

V. YANUKOVYCH

City of Kyiv
8 July 2010
No. 2456-VI