Public Finance Management (PFM) is a priority area for the European Union (EU) – Ukraine relations. Strong PFM system is essential for sound management of taxpayers’ money and to promote effective and sustainable economic management, trade and business climate, and public service delivery. Good PFM system is also indispensable in ensuring that EU and other donor assistance is used effectively to achieve reform goals.

EU4PFM project covers 5 components:

Component 1. Budget process modernisation, improved control and accountability
Component 2. Public Procurement
Component 3. Revenue Mobilisation
Component 4. Horizontal functions and governance
Component 5. External audit and Parliamentary oversight

The overall objective of the EU4PFM Programme is to improve the public finance management in Ukraine, thereby ultimately improving public service delivery and the business climate and to strengthen Ukraine’s resilience by responding to urgent needs by the Ukrainian authorities resulting from the Russian war of aggression in Ukraine

Component 1:
Strengthened capacities in the Ministry of Finance (MoF) and other key spending units (KSUs) for the implementation of medium-term budgetary planning
Strengthened capacities in MoF and other KSUs regarding programme-based budgeting and execution of spending reviews
Strengthened capacities in the State Treasury Service of Ukraine and MoF regarding budget execution function and liquidity management
Strengthened capacities with regards to the further alignment of the Ukrainian accounting system with international standards
Strengthened capacities for public internal financial control including internal audit of public finances

Component 2:
The legal framework (primary and secondary legislation) on public procurement (including concessions and defense) is further aligned to EU acquis
Strengthened institutional and organisational framework in public procurement, including concessions and defense procurement
Strengthened capacities of the relevant public bodies in control, audit and complaint/review of public procurement procedures
Strengthened the framework for professionalisation of public procurement officers and enhanced communication/outreach to the participants of the public procurement market

Component 3 and Component 4:
Strengthened capacities in introducing and implementing tax compliance enhancing measures and in the legal approximation of tax laws and regulations with the EU acquis and international best practices
Strengthened capacities in broadening Ukraine's tax base through, inter alia, improved tax-related information flow
Further improvement of customs processes in line with EU acquis and international best practices
Further improvement of the customs administration to counter tax avoidance and to implement trade facilitation measures
Strengthened capacities of PFM institutions regarding institutional development and implementation of anti-corruption and integrity policies
Strengthened capacities to design, coordinate, monitor, update and report on EU4PFM policy documents

Component 5:
Strengthened capacities in external audit in line with international standards
Strengthened institutional framework for external audit and Parliamentary oversight