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BUDGET CODE OF UKRAINE

of July 8, 2010 No. 2456-VI

(as amended on 02-06-2020)

The budget code of Ukraine determines the legal basis of functioning of the budget system of Ukraine, its principles, bases of the budget process and the interbudget relations and responsibility for violation of the budget legislation.

Section I. Budget system of Ukraine and basis of the budget process

Chapter 1. General provisions

Article 1. The relations which are governed by the Budget code of Ukraine

1. The budget code of Ukraine governs the relations arising in the course of creation, consideration, approval, accomplishment of budgets, the reporting on their accomplishment and control of observance of the budget legislation and questions of responsibility for violation of the budget legislation, and also legal principles of education and repayment of the public and local debt are determined.

Article 2. Determination of the main terms

1. In this Code the stated below terms are used in such value:

1) the budget - the plan of forming and use of financial resources for providing tasks and functions which are performed respectively by public authorities, authorities of the Autonomous Republic of Crimea, local government bodies during the budget period;

2) budgets of local self-government - budgets of territorial communities of villages, their associations, settlements, cities (including areas in the cities) budgets of the integrated territorial communities;

2-1) budgets of the integrated territorial communities - budgets of the integrated territorial communities created according to the law and the perspective plan of forming of the territories of communities, and also budgets of the integrated territorial communities recognized by the Cabinet of Ministers of Ukraine solvent according to the procedure, established by the law;

3) budget classification - the single systematized sgruppirovaniye of the income, expenses, crediting, financings of the budget, debt according to the legislation of Ukraine and international standards;

4) the budget program - set of the actions directed to achievement of the single purpose, tasks and the expected result which determination and the realization are enabled by the manager of budgetary funds according to the functions assigned to it;

5) the budget system of Ukraine - the set of the government budget and local budgets constructed taking into account the economic relations, state and administrative-territorial devices and settled by rules of law;

6) the budget assignment - the powers of the manager of budgetary funds conferred according to budget setting for capture of the budget obligation and implementation of payments which have quantitative, hour and target restrictions;

7) the budget obligation - any order placement performed according to the budget assignment, the conclusion of the agreement, purchase of goods, services or implementation of other similar transactions during the budget period according to which it is necessary to make payments during the same period or in the future;

7-1) budget obligation on the state derivatives - the budget obligation according to which it is necessary to perform expenses on payments for the state derivatives in accordance with the terms of their placement during the current budget period and/or future;

8) budget setting - the power of the main manager of budgetary funds conferred by this Code, the law on the Government budget of Ukraine (the decision on the local budget) which has quantitative, hour and target restrictions and allows to provide budgetary appropriations;

9) the budget request - the document prepared by the main manager of budgetary funds who contains offers with the corresponding reasons concerning amount of the budgetary funds necessary for execution of the functions assigned to it for the medium-term period, based on the corresponding limiting indicators of expenses of the budget and loan granting from the budget;

10) the budget process - the process of creation, consideration, approval, accomplishment of budgets regulated by the budget legislation, the reporting on their accomplishment, and also control of observance of the budget legislation;

11) budgetary funds (budget funds) - the receipts of the budget ought according to the legislation and expenses of the budget;

12) budgetary institutions - public authorities, local government bodies, and also the organizations created by them in accordance with the established procedure which completely contain at the expense of respectively government budget or the local budget. Budgetary institutions are non-profitable;

12-1) debt obligation - the obligation of the borrower to the creditor on the credit (loan) which resulted from release and placement of debt securities and/or the conclusion of credit agreements;

13) budget expenses - the funds allocated for implementation of the programs and actions provided by the relevant budget. Do not treat expenses of the budget: debt repayment; loan granting from the budget; placement of budgetary funds on deposits; acquisition of securities; return of surplus of the amounts of taxes and fees and other budget receipts paid in the budget, carrying out their budget compensation; compensation of part of the amount of the penal (financial) sanctions listed to buyers (consumers) at the expense of the penal (financial) sanctions applied by bodies which control collection of receipts of the budget by results of performed according to the address or the claim of the buyer (consumer) about violation by the taxpayer of established procedure of carrying out settlement transactions;

14) budget expenses - budget expenses, loan granting from the budget, debt repayment and placement of budgetary funds on deposits, acquisition of securities;

15) own receipts of budgetary institutions - the receipts received in accordance with the established procedure by budgetary institutions as payment for provision of services, performance of works and target actions, grants, gifts and charitable fees, and also receipts from realization in accordance with the established procedure of products or property and other activities;

15-1) warranty obligation - the obligation of the guarantor fully or partially to fulfill debt obligations of the subject of managing - resident of Ukraine before the creditor in case of failure to carry out by such subject of its obligations on the credit (loan) attracted under the state or local guarantee;

16) the debt guaranteed by the Autonomous Republic of Crimea regional council or territorial community of the city - the total amount of debt obligations of subjects of housekeeping - residents of Ukraine return obtained and outstanding condition on reporting date of the credits (loans) which accomplishment is provided with local guarantees is relative;

17) the debt guaranteed by the state - the total amount of debt obligations of subjects of housekeeping - residents of Ukraine return obtained and outstanding condition on reporting date of the credits (loans) which accomplishment is provided with the state guarantees is relative;

18) the main managers of budgetary funds - budgetary institutions on behalf of their heads who according to article 22 of this Code receive powers by establishment of budget settings;

19) the state borrowing - the transactions connected with receipt of the credits (loans) by the state on terms of return, the paid nature and urgency for the purpose of financing of the government budget;

20) public debt - the total amount of debt obligations of the state on return of the obtained and outstanding loans (loans) as of reporting date arising owing to the state borrowing;

20-1) state investment project - the investment project realized by way of the state investment into objects of state-owned property with use of the state capital investments and/or loans (loans) attracted by the state or under the state guarantees;

20-2) state capital investments - the capital expenditures of the government budget (loan granting from the government budget) directed to creation (acquisition), reconstruction, technical retrofitting of fixed assets of state-owned property which expected useful life exceeds one year;

21) budget deficit - excess of expenses of the budget over its income (taking into account difference between loan granting from the budget and return of the credits to the budget);

21-1) long-term obligations on power service - obligations according to the power service agreement of the manager of budgetary funds, in operational management or economic maintaining which are object concerning which procurement of power service according to which it is necessary to make payments during future and/or the expense reduction flowing budget periods within the amount on payment of utilities and energy carriers is conducted (in comparison with expenses which would be performed in the absence of power service);

22) it is excluded;

23) budget receipts - tax, non-tax and other revenues on irretrievable basis which collection is stipulated by the legislation Ukraine (including transfers payment for provision of administrative services, own receipts of budgetary institutions);

23-1) single treasurer accounts - the account opened for the central executive body realizing state policy in the sphere of treasurer servicing of budgetary funds (further - Treasury of Ukraine), in the National Bank of Ukraine for accounting of means and implementation of calculations in electronic payment system of the National Bank of Ukraine on which are consolidated public fund and local budgets, funds of obligatory national social and pension insurance and means of other clients which according to the legislation are on treasurer servicing;

24) the law on the Government budget of Ukraine - the law approving the Government budget of Ukraine and containing provisions concerning ensuring its accomplishment during the budget period;

25) remaining balance of budgetary funds - amount of means of the relevant budget, managers and receivers of budgetary funds of this budget by the end of the reporting period;

26) the investment project - complex of the actions determined based on national value system and tasks of innovative development of economy and aimed at the development of separate industries, sectors of economy, productions, regions which accomplishment is performed with use of means state and/or local budgets or by provision of the state and/or local guarantees;

26-1) quasifiscal transactions - transactions of public authorities and local self-government, the National Bank of Ukraine, funds of obligatory national social and pension insurance, subjects of managing of the state and municipal sectors of economy which are not displayed in budget indicators, but can lead to reduction of receipts of the budget and/or need additional expenses of the budget in the future;

27) it is excluded;

28) it is excluded;

29) it is excluded;

30) the estimate - the main planned financial record of budgetary institution which for budget period establishes powers concerning receipt of receipts and distribution of budgetary appropriations to capture of the budget obligations and implementation of payments for accomplishment by budgetary institution of the functions and achievement of the results determined according to budget settings;

31) crediting of the budget - transaction on provision of means from the budget on terms of return, the paid nature and urgency owing to what there are obligations to the budget (loan granting from the budget), and transactions on return of such means to the budget (return of the credits to the budget). For the purposes of this Code the budget loans and financial aid from the budget on returnable basis also belong to the credits from the budget;

31-1) properties of budgetary institution - property (in the value given in the Civil code of Ukraine) which belongs to the state-owned or municipal property and are assigned to budgetary institution according to the legislation;

32) the interbudget transfers - means which bezoplatno are also irreversibly transferred from one budget to another;

33) local borrowing - transactions on obtaining in the budget of the Autonomous Republic of Crimea or the city budget of the credits (loans) on terms of return, the paid nature and urgency for the purpose of financing of the budget of the Autonomous Republic of Crimea of the regional or city budget;

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

35) local debt - the total amount of debt obligations of the Autonomous Republic of Crimea or territorial community of the city on return of the obtained and outstanding loans (loans) as of reporting date which arise owing to local borrowing;

36) local financial body - organization which according to the legislation of Ukraine performs functions on creation, accomplishment of local budgets, control of expenditure of means by managers of budgetary funds, and also other functions connected with management of means of the local budget. For the purposes of this Code the executive body of the Autonomous Republic of Crimea of regional council concerning finance is carried to local financial bodies. Rural, settlement, city (the cities of district value) the chairman provides accomplishment of functions of local financial body if such body is not created according to the law;

37) receipts of the budget - budget receipts, return of the credits to the budget, means from state (local) borrowings, means from privatization of state-owned property (rather government budget), return of budgetary funds from deposits, receipts owing to sale/presentation of securities;

37-1) servicing of the public (local) debt - transaction concerning implementation of payment for use of the credit (loan), payment of the commissions, penalties and other payments connected with public administration (local) debt. Repayment of the public (local) debt does not belong to such transactions;

38) the receiver of budgetary funds - the subject of housekeeping, public or other organization which has no status of budgetary institution authorized by the manager of budgetary funds for implementation of the actions provided by the budget program and receives budget funds on their accomplishment;

39) the bodies controlling collection of receipts of the budget, public authorities, and also local government bodies authorized to exercise control of correctness and timeliness of tax collection and charges, other receipts of the budget;

40) the passport of the budget program - the document determining the purpose, tasks, the directions of use of budgetary funds, executives in charge, productive indicators and other characteristics of the budget program according to the budget setting established by the law on the Government budget of Ukraine (the decision on the local budget) and the purposes of state policy in the corresponding field of activity forming and/or realization of which is provided by the main manager of budgetary funds;

41) payment - accomplishment of the budget, debt warranty or tax liabilities which arose in current or the previous budget periods;

41-1) repayments of the public (local) debt - transaction on return by the borrower of the credits (loans) in accordance with the terms of credit agreements and/or release of debt securities;

42) program and target method in the budget process - method of management of budgetary funds for achievement of specific results by budget funds using efficiency evaluation of use of budgetary funds at all stages of the budget process;

43) the budget statement - the draft of the plan of forming and use of financial resources for providing tasks and functions which are performed by public authorities (authorities of the Autonomous Republic of Crimea, local government bodies) during the budget period, being integral part of the bill on the Government budget of Ukraine (the draft decision about the local budget);

44) budget surplus - excess of budget receipts over its expenses (taking into account difference between return of the credits to the budget and loan granting from the budget);

45) the decision on the local budget - the regulatory legal act of the Verkhovna Rada of the Autonomous Republic of Crimea or the relevant local council published in accordance with the established procedure which approves the local budget and determines powers according to Council of Ministers of the Autonomous Republic of Crimea, local public administration or executive body of local self-government to perform accomplishment of the local budget during the budget period;

46) budget list - the document in which income distribution, financing of the budget, return of the credits to the budget, budgetary appropriations to the main managers of budgetary funds on certain periods of year according to budget classification is established;

47) the manager of budgetary funds - the budgetary institution on behalf of her head authorized on receipt of budgetary appropriations, capture of the budget obligations, long-term obligations on power service and implementation of expenses of the budget;

47-1) medium-term liability according to standard agreements on construction, reconstruction, repair and content of highways - obligations according to the signed agreements (contracts) in the directions of use of means determined by Items 1 and 2 of part three of Article 24-2 of this Code according to which it is necessary to make payments during the current budget period and/or the medium-term period within the corresponding budget settings established by the law on the Government budget of Ukraine and amount of means of the state road fund (in the following directions) determined by the Budget declaration and/or program documents of economic and social development.

48) subventions - the interbudget transfers for use on particular purpose according to the procedure, the determined body which made the decision on provision of subvention;

48-1) temporarily available funds of the single treasurer account and currency accounts of the budget - amount of means which are considered on the accounts in Treasury of Ukraine received as receipts of budgets which derivation will not lead to loss of solvency of budgets (capability timely and in full to make payments and to be calculated according to all obligations) and to emergence of debt during the period for which placement of such means on deposits or by acquisition of government securities and the direction on covering of temporary cash gaps of local budgets and the pension fund of Ukraine with subsequent their return until the end of the current budget period is supposed;

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

49) management of budgetary funds - set of actions of the participant of the budget process according to its powers connected with forming and use of budgetary funds, control of observance of the budget legislation which are allocated for goal achievement, tasks and specific results of the activities and ensuring effective, productive and target use of budgetary funds;

49-1) management of the public (local) debt - set of the actions connected with implementation of borrowings, servicing and repayment of the public (local) debt, other legal transactions with the public (local) debt which are directed to achievement of balance of the budget and optimization of debt load;

50) the financial standard rate of fiscal capacity - the level of financial provision of tasks and functions guaranteed by the state within the available budgetary funds which are performed respectively by Council of Ministers of the Autonomous Republic of Crimea, local public administrations, executive bodies of local self-government, used for scoping of the interbudget transfers;

51) financing of the budget - the receipts and expenses of the budget connected with scope change of debt, amounts of deposits and securities, means from privatization of state-owned property (rather government budget), change of remaining balance of budgetary funds which are used for covering of budget deficit or determination of budget surplus;

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

Article 3. Budget period

1. The budget period for all budgets constituting the budget system of Ukraine constitutes one calendar year which begins on January 1 every year and comes to an end on December 31 the same year. Rejection by the Verkhovna Rada of Ukraine of the law on the Government budget of Ukraine till January 1 of the corresponding year is not the basis for establishment of other budget period.

2. According to the Constitution of Ukraine the budget period for the Government budget of Ukraine in case of special circumstances can be other, than it is provided by part one of this Article.

Special circumstances in case of which the Government budget of Ukraine can be approved on other, than provide by part one of this Article, budget period, are:

1) introduction of warlike situation;

2) the announcement of emergency state in Ukraine.

3. In case of approval of the Government budget of Ukraine on other, than it is provided by part one of this Article, budget period local budgets shall be approved for the same period.

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

Article 4. Structure of the budget legislation

1. The budget legislation consists from:

1) Constitutions of Ukraine;

2) of this Code;

2-1) Budget declaration;

3) law on the Government budget of Ukraine;

4) other laws governing the budget relations, stipulated in Article 1 of this Code;

5) the regulatory legal acts of the Cabinet of Ministers of Ukraine adopted on the basis and in pursuance of of this Code and other laws of Ukraine provided by Items 3 and 4 of this part of Article;

6) the regulatory legal acts of the executive bodies adopted on the basis and in pursuance of this Code, other laws of Ukraine and regulatory legal acts of the Cabinet of Ministers of Ukraine, provided by Items 3, 4 and 5 these parts of Article;

6-1) forecasts of local budgets;

7) decisions on the local budget;

8) decisions of bodies of the Autonomous Republic of Crimea, local public administrations, local government bodies accepted according to this Code, the regulatory legal acts provided by Items 3, of 4, of 5, 6 and 7 these parts of Article.

Operation of the legislation on the state regulatory policy and regulatory activities does not extend to regulatory legal acts and decisions made on the basis and in pursuance of requirements of this Code.

2. The budget system of Ukraine and the Government budget of Ukraine are established by exclusively this Code and the law on the Government budget of Ukraine.

If the budget relations are determined by other regulatory legal act differently, than in this Code, the relevant standards of this Code are applied.

Only the law on the Government budget of Ukraine determines receipts and expenses of the Government budget of Ukraine.

3. If on ratification move the international treaty of Ukraine which accomplishment requires acceptance new or introduction of amendments to current laws of Ukraine which govern the budget relations, drafts of such laws move for consideration of the Verkhovna Rada of Ukraine together with the bill on ratification and are accepted at the same time.

4. Consideration of bills concerning their influence on indicators of the budget and compliance to the laws governing the budget relations is performed on special procedure, certain article 27 of this Code.

5. Changes can be made to this Code only by the laws on modification of the Budget code of Ukraine.

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 the government budget and local budgets.

2. Local budgets are the budget of the Autonomous Republic of Crimea, regional, district budgets and budgets of local self-government.

3. Budgets of local self-government are budgets of territorial communities of villages, their associations, settlements, cities (including areas in the cities) budgets of the integrated territorial communities.

Article 6. Consolidated budget

1. The consolidated budget is set of indicators of budgets which are used for the analysis and forecasting of economic and social development of the state.

2. The consolidated budget of Ukraine includes indicators of the Government budget of Ukraine, the consolidated budget of the Autonomous Republic of Crimea and consolidated budgets of areas, cities of Kiev and Sevastopol.

3. The consolidated budget of the Autonomous Republic of Crimea includes indicators of the budget of the Autonomous Republic of Crimea, consolidated budgets of its areas and budgets of the cities of republican value of the Autonomous Republic of Crimea.

4. The consolidated budget of area includes indicators of the regional budget, consolidated budgets of areas, budgets of the cities of regional value and budgets of the integrated territorial communities of this area.

5. The consolidated budget of the area includes indicators of the district budget, budgets of the cities of district value, settlement and rural budgets of this area.

6. The consolidated budget of the city with district division includes indicators of the city budget and budgets of areas which are its part. If other cities, settlements or villages are administratively subordinated to the city or the area in the city, the consolidated budget of the city or area in the city includes indicators of budgets of these cities, settlements and villages.

7. It is excluded.

Article 7. Principles of the budget system of Ukraine

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

1) the principle of unity of the budget system of Ukraine - the unity of the budget system of Ukraine is provided with the single legal base, single cash system, single regulation of the budget relations, single budget classification, unity of procedure for accomplishment of budgets and conducting financial accounting and the reporting;

2) the principle of balance - powers on implementation of expenses of the budget shall correspond to amount of receipts of the budget for the corresponding budget period;

3) principle of independence - The government budget of Ukraine and local budgets are independent. The state means of the government budget does not bear responsibility for budgetary obligations of authorities of the Autonomous Republic of Crimea and local government bodies. Authorities of the Autonomous Republic of Crimea and local government bodies means of the corresponding local budgets do not bear responsibility for budgetary obligations of each other, and also for budgetary obligations of the state. Independence of budgets is provided with fixing to them of appropriate sources of budget receipts, the right of relevant organs of the government, authorities of the Autonomous Republic of Crimea and local government bodies to determine the directions of use of budgetary funds according to the legislation of Ukraine, the right of the Verkhovna Rada of the Autonomous Republic of Crimea and the relevant local councils independently and independently from each other to consider and approve the corresponding local budgets;

4) the principle of completeness - in structure of budgets all receipts of budgets and expenses of budgets which are performed according to regulatory legal acts of public authorities, authorities of the Autonomous Republic of Crimea, local government bodies are subject to inclusion;

5) the principle of justification - the budget is created on realistic macroindicators of economic and social development of Ukraine and calculations of receipts of the budget and expenses of the budget which are perfromed according to the approved techniques and rules;

6) the principle of efficiency and effectiveness - in case of creation and accomplishment of budgets all participants of the budget process shall aim at goal achievement, planned based on national value system and tasks of innovative development of economy, by ensuring high-quality provision of public services, in case of attraction of the minimum amount of budgetary funds and achievements of the maximum result when using of the amount of means determined by the budget;

7) the principle of subsidiarity - distribution of expense types between the government budget and local budgets, and also between local budgets is based on need of the greatest possible approach of provision of public services to their direct consumer;

8) the principle of target use of budgetary funds - budgetary funds are used only on the purposes determined by budget settings and budgetary appropriations;

9) concept of justice and impartialities - the budget system of Ukraine is under construction on bases of equitable and impartial distribution of public wealth between citizens and territorial communities;

10) the principle of publicity and transparency - informing the public concerning the budget policy of creation, consideration, approval, accomplishment of the government budget and local budgets, and also control over the implementation of the government budget and local budgets.

Article 8. Budget classification

1. Budget classification is used for creation and accomplishment state and local budgets, the reporting on their accomplishment, control of financial activities of public authorities, authorities of the Autonomous Republic of Crimea, local government bodies, other managers of budgetary funds, carrying out financial analysis by the income, organizational, functional and economic expense categories, crediting, financing and debt, and also for ensuring nation-wide and international comparability of the budget indicators. Budget classification is obligatory for application by all participants of the budget process within the budget powers.

2. The central executive body providing forming and realization of the state financial and budget policy (further - the Ministry of Finance of Ukraine) approves budget classification, changes to it and informs on it the Verkhovna Rada of Ukraine.

3. Budget classification has such components:

1) classification of budget receipts;

2) classification of expenses and crediting of the budget;

3) classification of financing of the budget;

4) classification is long.

Article 9. Classification of budget receipts

1. Budget receipts are classified under such Sections:

1) tax revenues;

2) non-tax receipts;

3) income from capital transactions;

4) transfers.

2. Tax revenues the nation-wide taxes and fees and the local taxes and charges established by the laws of Ukraine on the taxation are recognized.

3. Non-tax receipts are recognized:

1) property and entrepreneurial incomes;

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

2-1) own receipts of budgetary institutions;

3) other non-tax receipts.

4. Transfers - the means received from other public authorities, authorities of the Autonomous Republic of Crimea, local government bodies, other states or the international organizations on free and irretrievable basis.

Article 10. Classification of expenses and crediting of the budget

1. Expenses and crediting of the budget are classified on:

1) to the budget programs (program classification of expenses and crediting of the budget);

2) to sign of the main manager of budgetary funds (departmental classification of expenses and crediting of the budget);

3) to functions with which accomplishment expenses and crediting of the budget are connected (functional classification of expenses and crediting of the budget).

2. Program classification of expenses and crediting of the budget is used in case of application of program and target method in the budget process. Program classification of expenses and crediting of the government budget (local budget) is created by the Ministry of Finance of Ukraine (local financial body) according to the proposals submitted by the main managers of budgetary funds during creation of the bill on the Government budget of Ukraine (the draft decision about the local budget) in the budget requests at the same time is determined by expense allocation and crediting of the government budget (local budget) by the budget programs in the law on the Government budget of Ukraine (the decision on the local budget) and can be specified in case of accomplishment of the government budget (local budget) in case of introduction of amendments to the law on the Government budget of Ukraine (the decision on the local budget) and in case of application of provisions of part six of Article 23 and part two of Article 24 of this Code.

Program classification of expenses and crediting of the local budget is created taking into account standard program classification of expenses and crediting of the local budget which affirms the Ministry of Finance of Ukraine.

No. 2621-VIII is excluded according to the Law of Ukraine of 22.11.2018.

3. Departmental classification of expenses and crediting of the budget contains list of the main managers of budgetary funds for systematization of expenses and crediting of the budget for sign of the main manager of budgetary funds. At the same time departmental classification of expenses and crediting of the government budget in addition contains list of the main managers of means of the government budget for systematization of nation-wide expenses and crediting of the budget (which provide, first of all, accomplishment of actions for realization of state policy with participation of other authorities) on the basis of the main manager of means of the government budget.

Based on departmental classification of expenses and crediting of the budget the Treasury of Ukraine constitutes and keeps the unified register of managers of budgetary funds and receivers of budgetary funds.

The main managers of budgetary funds determine network of managers of budgetary funds of the lowest level and receivers of budgetary funds taking into account requirements concerning forming of the unified register of managers of budgetary funds and receivers of budgetary funds and data of such register.

4. Functional classification of expenses and crediting of the budget has such detail levels:

1) Sections in which the expenses and crediting of the budget connected with accomplishment of functions of the state, the Autonomous Republic of Crimea or local self-government are systematized;

2) subsections and groups in which expenses and crediting of the budget for accomplishment of functions of the state, the Autonomous Republic of Crimea or local self-government are concretized.

5. Expenses of the budget are classified under the economic characteristic of transactions which are performed in case of their carrying out (economic classification of expenses of the budget).

On economic classification of expenses of the budget expenses of the budget are subdivided on current and capital.

6. Classification of crediting of the budget systematizes crediting of the budget for type of the borrower and divides transactions on crediting for loan granting from the budget and to return of the credits to the budget.

7. As a part of expenses of the budget expenses of consumption and costs (expenses) of development according to budget classification are allocated.

Article 11. Classification of financing of the budget

1. Classification of financing of the budget contains sources of receipt of the financial resources necessary for budget deficit covering, and the direction of expenditure of financial resources which were formed as a result of budget surplus. Expenses on debt repayment belong in structure of financing of the budget.

2. Financing of the budget is classified on:

1) to the creditor's type (on categories of creditors or owners of debt obligations);

2) to type of debt obligation (on means which are used for financing of the budget).

Article 12. Classification is long

1. Classification of debt systematizes information on all debt obligations of the state, the Autonomous Republic of Crimea, territorial community of the city.

2. The debt is classified by type of the creditor and as debt obligation.

Article 13. Budget components

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

2. Components of the general fund of the budget are:

1) all budget receipts, except those which are intended for transfer in special fund of the budget;

2) all expenses of the budget which are performed for acquisition account of the general fund of the budget;

3) crediting of the budget (return of the credits to the budget without determination of the target direction and loan granting from the budget which is performed for acquisition account of the general fund of the budget);

4) financing of the general fund of the budget.

3. Components of special fund of the budget are:

1) budget receipts (including own receipts of budgetary institutions) which have the target direction;

2) budget expenses which are performed due to specifically certain receipts of special fund of the budget (including own receipts of budgetary institutions);

3) crediting of the budget (return of the credits to the budget with determination of the target direction and loan granting from the budget which is performed due to specifically certain receipts of special fund of the budget);

4) financing of special fund of the budget.

4. Own receipts of budgetary institutions turn out in addition to means of the general fund of the budget and join in special fund of the budget.

Own receipts of budgetary institutions are subdivided into such groups:

the first group - receipts from service fee which are provided by budgetary institutions according to the legislation;

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

As a part of the first group such subgroups are allocated:

subgroup 1 - service fee which are provided by budgetary institutions according to their main activities;

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

subgroup 3 - the hire charge of property of budgetary institutions which is performed according to the Law of Ukraine "About lease of the state-owned and municipal property".

subgroup 4 - receipts of budgetary institutions from realization in accordance with the established procedure property (except real estate).

As a part of the second group such subgroups are allocated:

subgroup 1 - charitable fees, grants and gifts;

subgroup 2 - receipts which receive budgetary institutions from the companies, the organizations, physical persons and from other budgetary institutions for accomplishment of target actions including actions for alienation for public requirements of the parcels of land and other real estate units placed on them which are in private property of physical persons or legal entities;

subgroup 3 - receipts which receive the public and municipal institutions of professional (professional), professional prehigher and higher education from placement on deposits of temporarily available budgetary funds received for provision of paid services if such institutions by the law are granted the appropriate right, means which receive the public and municipal institutions of professional prehigher and higher education, scientific institutions and cultural institutions as the percent added on balance on the current accounts opened in banks of public sector for placement of own receipts received as service fee, provided by them according to the main activities, charitable fees and grants.

The paragraph the fourteenth ceased to be valid according to the Law of Ukraine of 12.09.2019 No. 76-IX

Own receipts of budgetary institutions are used (taking into account part nine of article 51 of this Code) on:

covering of the expenses connected with the organization and provision of services which are provided by budgetary institutions according to their main activities (for acquisition account of subgroup of 1 first group);

the organization of additional (economic) activities of budgetary institutions (for acquisition account of subgroup 2 first groups);

content, arrangement, repair and property acquisition of budgetary institutions (for acquisition account of subgroup 3 first groups);

repair, upgrade or acquisition of new non-current assets and material values, covering of the expenses connected with the organization of collection and transportation of waste and scrap on places of acceptance (for acquisition account of subgroup 4 first groups);

economic requirements of budgetary institutions, including payment of utilities and energy carriers (for acquisition account of subgroups of 2 and 4 first groups);

the organization of the main activities of budgetary institutions (for acquisition account of subgroups of 1 and 3 second groups);

accomplishment of the relevant target activities (for acquisition account of subgroup 2 second groups).

5. Distribution of the budget to general and special funds, their components is determined only by this Code and the law on the Government budget of Ukraine.

6. The basis for the decision of the Verkhovna Rada of the Autonomous Republic of Crimea, the relevant local council about creation of special fund as a part of the local budget this Code and the law on the Government budget of Ukraine can be exclusive.

7. Transfer of means between general and special funds of the budget is allowed only within budget settings by introduction of amendments to the law on the Government budget of Ukraine, decision making about the local budget or about modification of it (except the case provided by part two of article 57 of this Code).

8. Payments for the account of special fund of the budget are made within means which actually arrived in this fund on the corresponding purpose (with observance of requirements of part two of article 57 of this Code) if this Code and/or the law on the Government budget of Ukraine (the decision on the local budget) does not establish another.

9. Creation of off-budget funds by public authorities, authorities of the Autonomous Republic of Crimea, local government bodies and other budgetary institutions is not allowed. Opening of off-budget accounts for placement of budgetary funds (including own receipts of budgetary institutions) public authorities, authorities of the Autonomous Republic of Crimea, local government bodies and other budgetary institutions is forbidden, except the cases provided by part eight of Article 16 and part two of article 78 of this Code, and also except placement by foreign diplomatic organizations of Ukraine of budgetary funds on current accounts of foreign banks, placed on current accounts in the banks of public sector of own receipts of the public and municipal institutions of professional prehigher and higher education, scientific institutions and cultural institutions received as service fee, provided by them according to the main activities, charitable fees and grants, in according to the procedure, established by the Cabinet of Ministers of Ukraine, placement of professional (professional), professional prehigher and higher education by organizations on deposits of temporarily available budgetary funds received for provision of paid services, according to the procedure, established by the Cabinet of Ministers of Ukraine if such institutions by the law are granted the appropriate right and placement on accounts of banks of the receipts determined by Item of 1 part three of Article 15, Item 13 parts three of Article 29 and Item 12 parts one of Article 69-1 of this Code, according to the procedure, established by the Cabinet of Ministers of Ukraine.

10. Planned and reporting targets of rather budget compensation of the value added tax, return of the credits to the budget, debt repayments, placements of budgetary funds on deposits, acquisitions of securities, ensuring the established size of turnover remaining balance of budgetary funds and other corresponding indicators determined by the Ministry of Finance of Ukraine surely are displayed with negative value.

Chapter 3. Financing of the budget (deficit, surplus) and public (local) debt

Article 14. Deficit and budget surplus, remaining balance of budgetary funds

1. Approval of the budget with deficit is allowed in case of availability of reasonable sources of financing of the budget taking into account the features determined by article 72 of this Code.

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

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

2. The budget surplus affirms for the purpose of debt repayment, ensuring the established size of turnover remaining balance of budgetary funds and acquisition of securities taking into account the features determined by article 72 of this Code.

3. Turnover remaining balance of budgetary funds - part of balance of the general fund of the relevant budget which is formed for covering of temporary cash gaps.

The turnover remaining balance of budgetary funds is established in the amount of no more than 2 percent of planned costs of the general fund of the budget and affirms as the law on the Government budget of Ukraine (the decision on the local budget).

For the end of budget period the turnover remaining balance of budgetary funds shall be kept in the established size.

4. Excess of balance of the general fund of the budget over turnover remaining balance of budgetary funds for the end of budget period constitutes free remaining balance of budgetary funds which is used on implementation of expenses of the budget according to the law on the Government budget of Ukraine and/or changes to it (changes to the decision on the local budget).

Article 15. Sources of financing of the budget

1. Sources of financing of the budget are:

1) means from the state (local) internal and external borrowing;

2) means from privatization of state-owned property (including other receipts which are directly connected with privatization process) - rather government budget;

3) return of budgetary funds from deposits, receipts owing to sale/presentation of securities;

4) free remaining balance of budgetary funds with observance of the conditions determined by this Code including the balance of the government budget created due to the superplanned state borrowings performed in the previous budget period according to part eleven of article 16 of this Code.

2. Issued means of the National Bank of Ukraine cannot be source of financing of the budget.

3. Sources of forming of special fund of the Government budget of Ukraine regarding financing are:

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

2) other receipts determined by the law on the Government budget of Ukraine.

4. In case of reduction of amount of sources of financing of the government budget of certain type in comparison with the amount determined by the law on the Government budget of Ukraine it is allowed according to the decision of the Cabinet of Ministers of Ukraine approved with Committee of the Verkhovna Rada of Ukraine concerning the budget, increase in amount of sources of financing of the government budget of other type with limiting observance of amount of annual central government budget deficit.

Article 15-1. National debt management and the debt guaranteed by the state

1. National debt management and the debt guaranteed by the state is performed by the central executive body realizing the state budget policy in the sphere of national debt management and guaranteed by the state debt (further - the Debt agency of Ukraine). Activities of the Debt agency of Ukraine go and coordinated by the Cabinet of Ministers of Ukraine through the cabinet minister of Ukraine responsible for forming and realization of the state financial and budget policy, or person fulfilling its duties (further - the Minister of Finance of Ukraine).

2. The Ministry of Finance of Ukraine exercises control of national debt management and the debt guaranteed by the state, providing determination of organizational and methodological bases of implementation of such management and systematic carrying out the analysis of results and efficiency of such management.

The Audit Chamber at least once in three years exercises the state external financial control (audit) of activities of the Debt agency of Ukraine regarding national debt management and the debt guaranteed by the state.

3. The debt agency of Ukraine prepares the annual report on results of national debt management and the debt guaranteed by the state and publishes such report on the official site no later than April 1 of the year following reporting.

Article 16. Implementation state (local) borrowings and managements of the public (local) debt

1. The state borrowings are performed in the limits determined by the law on the Government budget of Ukraine (except the cases provided by part four of article 15 of this Code paragraph one of part seven and paragraph one of part eleven of this Article), with limiting observance of amount of public debt for the end of budget period (except the cases provided by part four of article 15 of this Code and paragraph one of part eleven of this Article).

The right to implementation of the state internal and external borrowing, belongs to the state on behalf of the Chairman of the Debt agency of Ukraine or person fulfilling its duties (further - the Chairman of the Debt agency of Ukraine), at the request of the Minister of Finance of Ukraine.

The Cabinet of Ministers of Ukraine determines the main conditions of implementation of the state borrowings, including the main conditions of credit agreements both the main conditions of releases and procedure for placement of government securities.

In case of reduction of amount of means from state internal (external) borrowings in comparison with the amount determined by the law on the Government budget of Ukraine in connection with deterioration in conditions of such borrowing and/or environment of the financial market increase in amount of means from state external (internal) borrowings with limiting observance of amount of public debt is allowed.

In case of reduction (increase) of amount of payments on repayment of public debt in connection with improvement (deterioration) of conditions in the financial market in comparison with the amount determined by the law on the Government budget of Ukraine reduction (increase) of amount of the state borrowing with observance of the amount of financing of the government budget determined by the law on the Government budget of Ukraine on debt transactions is allowed.

2. The credits (loans) from foreign states, foreign financial institutions and international financial institutions for implementation of investment projects are attracted by the state based on international treaties of Ukraine and belong to the state external borrowings. Means for implementation of such investment projects, and also maintenance expenses and repayment of the corresponding credits (loans) are provided in the law on the Government budget of Ukraine during all effective period of credit agreements. The relevant international agreements do not require ratification if another is not established by the law.

3. The Verkhovna Rada of the Autonomous Republic of Crimea and city councils have the right to perform local internal borrowing (except as specified, stipulated in Article 73 these Codes).

By receipt of the credits (loans) from international financial institutions the Verkhovna Rada of the Autonomous Republic of Crimea, regional councils and city councils can perform local external borrowings. Only the Verkhovna Rada of the Autonomous Republic of Crimea, the Kiev, Sevastopol city councils, city councils of the cities of regional value can perform other local external borrowings.

The right to implementation of local borrowing in 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, territorial community of the city on behalf of the head of local financial body at the request of the Verkhovna Rada of the Autonomous Republic of Crimea, regional council, city council.

4. The budgetary institution has no right to perform borrowing in any form (except the cases provided by this Code) or to grant to legal entities or physical persons the loans from the budget (if the corresponding budget settings on loan granting from the budget are not established).

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