Performance-Based Program Budgeting in Ukraine (with a Focus on the Local Budget Level)

  • Nataliia Grynchuk
Part of the Governance and Public Management book series (GPM)


In Ukraine, the implementation of performance-based budgeting (PBB) and of the comprehensive analysis and review of the efficiency and feasibility of expenditures by sectors started approximately 10 years ago, but processes are still in the initial phases. The goal of this chapter is to evaluate existing experiences in general and to provide a specific case study of the road infrastructure programme in the capital city of Kyiv. The results of our analysis show that Ukraine faces many challenges in the process of implementing PBB at the local budget level. Reports on budget execution are currently based on the analysis of only certain socioeconomic indicators and do not provide comprehensive coverage of customer satisfaction with budget services—in most cases, only cost and product indicators are used. Moreover, subprogrammes are assigned too many indicators, and these indicators are formally drawn up without a proper analysis of the reasons for previously underperformed or overfulfilled performance indicators. Also, the past achievements are not considered when establishing target performance indicators for the next year. The final issue is the lack of a clear connection between strategic documents, programme targets, and programme budgets.


Performance-based budgeting Ukraine The local budget level Current legislation Problems Performance indicators Efficiency of using financial resources 


  1. Bouckaert, Geert, and John Halligan. 2008. Managing Performance: International Comparisons. Oxon: Routledge.Google Scholar
  2. Budgetary Codex Ukraine. 2010. Kyiv: Ukrainian Government (Biдoмocтi Bepxoвнoї Paди Укpaїни, 2010, № 50-51).Google Scholar
  3. Moynihan, Donald P. 2008. The Dynamics of Performance Management: Constructing Information and Reform. Washington, DC: Georgetown University Press.Google Scholar
  4. Nemec, Juraj, and Nataliia Grynchuk. 2017. Performance Budgeting. The Teaching Material. Bratislava: NISPAcee.Google Scholar
  5. On Approval of the Typographical List of Budget Programs and Effective Indicators of Their Performance for Local Budgets in the Public Administration. 2010. Kyiv. Ukrainian Government (Haкaз Miнicтepcтвa фiнaнciв Укpaїни вiд 01.10.2010 p. № 1147 «Пpo зaтвepджeння Tипoвoгo пepeлiкy бюджeтниx пpoгpaм тa peзyльтaтивниx пoкaзникiв їx викoнaння для мicцeвиx бюджeтiв y гaлyзi “Дepжaвнe yпpaвлiння”).Google Scholar
  6. Rules for Drawing Up Passports of Budget Programs of Local Budgets and Reports on Their Implementation. 2014. Kyiv: Ministry of Finance of Ukraine (Haкaз Miнicтepcтвa фiнaнciв Укpaїни вiд 26.08.2014 № 836 «Пpaвилa cклaдaння пacпopтiв бюджeтниx пpoгpaм мicцeвиx бюджeтiв тa звiтiв пpo їx викoнaння).Google Scholar
  7. Stankus, Tetiana. 2017. Performance-Based Budgeting in the Budget Process at the Level of Local Budgets (Пpoгpaмнoцiльoвий мeтoд y бюджeтнoмy пpoцeci нa piвнi мicцeвиx бюджeтiв). Kharkiv: Factor.Google Scholar
  8. Strategy of Public Finance Reform 2017–2020. 2017. Kyiv: Ukrainian Government (Poзпopяджeння Кaбiнeтy Miнicтpiв Укpaїни вiд 8 лютoгo 2017 p. № 142).Google Scholar
  9. Van Dooren, Woulter, Geert Bouckaert, and John Halligan. 2015. Performance Management in the Public Sector, 2nd ed. London: Routledge.Google Scholar
  10. Zubenko, Vyacheslav, ed. 2017. Planning and Implementation of Local Budgets Based on the Performance-Based Budgeting Method. Kyiv: NGO Institute for Budgetary and Socio-Economic Research.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Nataliia Grynchuk
    • 1
  1. 1.Regional Administration, Local Self-Government and Urban Management DepartmentNational Academy for Public Administration under the President of UkraineKyivUkraine

Personalised recommendations