Public budgeting in wartime: to be or not to be?
Public budgeting in wartime: to be or not to be?

Date: 06.08.2024

Author: Hurba Liudmyla

Photo: "Freepik"

Liudmyla Hurba, Adviser on Decentralisation and Local Self-Government at the Regional Office of U-LEAD in the Vinnytsia Oblast, shared her thoughts on public budgeting in wartime.

This year, 16 municipalities participating in U-LEAD’s Support Programme “Development and Implementation of the Public Budget” mastered public budgeting as a tool for solving problems of local importance for the first time.

Liudmyla Hurba, Head of the Working Group on Public Participation, Coordinator of the Support Programme “Development and Implementation of the Public Budget”, Adviser on Decentralisation and Local Self-Government at the Regional Office of U-LEAD in the Vinnytsia Oblast, shared her thoughts on public budgeting in wartime.

Here is what she said:

Keep in mind that we decided to take a risk and launched this initiative in March of this year under martial law, with limited financial resources of municipalities and, frankly, to the scepticism to the idea of starting a public budget during a full-scale war.

49 municipalities answered the call of the U-LEAD with Europe Programme and submitted their applications to join in. Following the open competition, 16 municipalities with the strongest applications were selected.

The municipalities participating in the selection focused on the issues such as motivation and willingness to implement the public budget in 2024, allocating funds in local budgets, as well as the further financing of the winning projects in 2025.

While the municipalities must demonstrate the key outcomes of implementation, including the implementation of the winning projects submitted under the public budget, in the next year, it is equally important to properly evaluate the outcomes that the municipalities have already achieved.

Outcome 1: Public engagement

Being the first experience of implementing a public budget for the participants it was probably the most difficult stage, and it was necessary to both raise public awareness of what a “public budget” is and to engage residents in researching current issues, writing and submitting projects. As a result, new Public Budget tabs were created (updated) on municipalities’ websites and information campaigns were launched, including in social media.

You can find evidence of this on the websites of the municipalities of Olhopil, Kobleve, Svesa, Kipti, Chornukhy and others.

Outcome 2: Identifying people who care among the public

According to the participants, the introduction of the public budget allowed them to identify active citizens who initiated their projects, as well as revealed problems that the municipalities had previously had no idea about. The implementation of the public budget brought out new pacemakers in some municipalities, with the ideas from the residents of the starosta districts and young people who submitted their ideas and projects being especially valuable for the municipalities.

Outcome 3: Involvement of the public in the process of distributing part of the budget funds in the municipality

“Despite the legal restrictions on the financing of expenditures from local budgets and the small portion of local budgets that municipalities are willing to allocate for the implementation of winning projects, the public had the opportunity to join the budget process, understood its principles and was able to influence the decisions of the Council regarding the local budget expenditures,” read the statement of the Koropets Settlement Council, Ternopil Oblast, on its participation in the Programme.

This outcome shows us that the public in the municipalities is now more interested in the distribution of budget funds and involved in this process.

Outcome 4: Improved understanding between local authorities and the public

This would be best illustrated with the feedback of another participating municipality, the Kobleve Village Council, Mykolaiv Oblast:

“When the municipality started implementing the public budget, some residents would make comments on social media along the lines of “In wartime, these funds should be redirected to the needs of the military; we can do without projects implemented with the funds of the local budget”. However, well-crafted responses to these comments from the village council officials silenced the “haters”, and no one has cast aspersions on the public budget after that!”

We were able to achieve this thanks to the right messaging, which the participants worked out at the workshops on the launching and the main stages of the public budgeting in the municipality.

Outcome 5: Strengthening trust in local authorities

“Together we are stronger and more successful!” responded the Budyshche Village Council, Cherkasy Oblast to the question about the assets received by the municipality through the participation in the Support Programme.

“The biggest advantage for us was a better understanding between local authorities and residents and strengthening our public outreach. People saw that their opinions were valued, which, in turn, promotes trust in the authorities as well as the development and improvement of the municipality itself.”

To sum up, seeing the growth shown by the participants at seminars, training sessions and consultations throughout 17 weeks (which is how long the support program lasted), it was clear that the participants not only developed packages of necessary documents, but also:

  • learned to listen to the opinions of their residents, find understanding and overcome challenges;
  • made the activities of local councils more transparent and accountable;
  • the public was given access to the distribution of a portion of the municipalities’ financial resources, which strengthened the shared sense of responsibility for the municipalities’ future;
  • mastered new practical skills and mentored residents of their municipalities in the process of forming their own projects;
  • researched ideas and attitudes of the local public; studied, evaluated and determined projects of public interest to be implemented.

Despite the current limitations, participation in the Support Programme “Development and Implementation of the Public Budget” laid the groundwork for the development of democratic processes in municipalities, and this first experience of the participating municipalities is a step towards even more ambitious plans in the future and great project outcomes!

We will keep an eye on and strongly support each participant in their further activities. We can also safely say that public budgeting can be done even in the most trying times for local self-government!

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29.11.2023
New requirements for providing bomb shelters in municipalities: clarification of U-LEAD experts
New requirements for providing bomb shelters came into force on the 1st of November. How will these innovations affect their reconstruction and overhaul? What additional restrictions should local self-government bodies keep in mind when equipping protective facilities from now on?
#legislation
#war
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28.11.2023
Expert: Municipalities can allocate the free balance of the budget only to certain directions
The President of Ukraine signed Law No. 3428-IX “On Amendments to Section VI of the Budget Code of Ukraine on Ensuring the Support of the State’s Defence Capabilities and the Development of the Defence and Industrial Complex of Ukraine” dated 8 November 2023. This Law lists directions for the municipalities to allocate free local budget balances under martial law.
#legislation
#local budgets
#advice
#news
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24.11.2023
Natalia Petrenko: In our village, the invaders tore off the stickers of European donors
An interview with Head of the Shulginka Rural Military Administration and representative of the All-Ukrainian Association of ATCs, who took part in the ACT NOW conference in Brussels.
#interview
#war
#international cooperation
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31.10.2023
Business-friendly municipality: How and why should municipalities work on projects to support and develop entrepreneurship?
Read about how local self-government bodies can attract funds from international funds for their own projects and develop the capacity to use these funds.
#analytics
#lsg
#war
#reconstruction
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26.10.2023
U-LEAD meets the needs of Donetsk Oblast's municipalities and keeps supporting them institutionally
The Programme supports municipalities in all government-controlled areas of Ukraine.
#war
#recovery
#reconstruction
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21.09.2023
Diagnostics of the local taxation system – analytical report
In the study conducted by Growford Institute with the support of U-LEAD with Europe, experts are looking for ways to strengthen the financial capacity of local governments
#finances
#accounting
#analytics
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11.09.2023
Diagnostics of the local taxation system in Ukraine: analytical results
This extensive analytical report by our experts looks for ways to strengthen the financial capacity of local self-government bodies.
#analytics
#local budgets
#lsg
#advice
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25.08.2023
Can the municipality finance the needs of the military at the expense of local budgets? U-LEAD clarifies
At the event for Cherkasy municipalities, a hot topic was discussed: solving financial issues under martial law. The participants familiarized themselves with changes in the legislation in the spheres of financial and budgetary relations of the local government, worked out urgent issues of the implementation of the powers of the local government and discussed the powers to finance the needs of the military at the expense of local budgets.
#finances
#war
#advice
#legislation
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21.08.2023
The war wrecks local budgets of municipalities of the Kherson oblast
U-LEAD experts analysed the budgets of 49 municipalities in the region over the period of 6 months of 2023: although some municipalities have more than met their targets, the overall situation is grim.
#war
#local budgets
#news
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27.07.2023
Stabilisation of the local budget: The Vilnyanska municipality experience
As a result of participating in the U-LEAD with Europe's Budget Stabilisation Plan training programme for financiers, the Vilnyanska municipality of Zaporizhzhia Oblast managed to increase budget revenues for the first half of 2023 by 2.5% of the targets.
#local budgets
#recovery
#war
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17.07.2023
Andrii Bohdan, Mayor of Horodnia: To plan and reduce energy costs is to save budget funds
Why does the municipality need a Municipal Energy Plan? How to save on energy sources already today? How do energy-efficient innovations get adopted from the municipal infrastructure into everyday life? Find out the answers in this quick interview with Andrii Bohdan, Head of the Horodnia City Council in the Chernihiv Oblast.
#interview
#energy security
#local budgets
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14.07.2023
On the simplified procedure for local taxes and fees for the period of martial law
The participants of the information session, held by U-LEAD in partnership with the Southern Interregional Department of the State Regulatory Service of Ukraine, learned about the peculiarities of regulatory policy during the war, the possibility for local councils to adopt acts under a simplified procedure, as well as the pitfalls of such indulgences.
#finances
#war
#advice
#legislation
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11.07.2023
U-LEAD helps municipalities to understand public procurement for budget funds
Read our material about public procurement for budget funds, authorised persons and municipalities' work with experts from the Institute for Budgetary and Socio-Economic Research (IBSER).
#local budgets
#advice
#legislation
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10.07.2023
Land audit in municipalities by U-LEAD with Europe: sharing a step-by-step algorithm
Read about the audit, its meaning, importance and implementation tools in the material from U-LEAD experts.
#finances
#advice
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10.07.2023
Analytics: Coordination of Reconstruction and Recovery with the Regional Development Policy in Ukraine
This new research by Janez Sustersic covers the combination of the reconstruction effort in Ukraine with the policy of its regional development, vertical and horizontal coordination, available financial instruments and planning for recovery at the regional and local levels.
#recovery
#war
#analytics
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07.07.2023
Report: Towards achieving 'strategies of gain' in post-war Ukraine
This material is an abridged version of the Report on local self-government reform in post-war Ukraine, namely on current strategies for reconstruction in the context of emergency situations and taking the locality into account (in English only).
#analytics
#war
#recovery
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06.07.2023
Facilitating IDP business relocation: economically empowered municipalities
This article is about the organisation of IDP business development work in municipalities and the benefits of such cooperation, opportunities for IDPs, as well as for municipal residents and war veterans to start their own businesses, as well as about government and international grant assistance in this process.
#war
#internally displaced persons
#business
#advice
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04.07.2023
How to deal if a local government employee stayed in the temporarily occupied territory and was forced to obtain a Russian passport?
U-LEAD experts provided explanations on personnel issues related to the work of local self-government under occupation.
#war
#legislation
#advice
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21.06.2023
U-LEAD with Europe jointly with tax authorities explains peculiarities of taxes and fees payment under martial law to municipalities of Kharkiv Oblast
During the joint information session, the U-LEAD with Europe Regional Office and the Main Department of the State Tax Service in Kharkiv Oblast discussed changes to the tax legislation under martial law and the ability of local self-government representatives to ensure the flow of their own resources to local budgets.
#war
#legislation
#finances
#local budgets
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15.06.2023
Social dormitories: How municipality may provide IDPs with housing
The participants of the informational session, organised by the U-LEAD with Europe Programme, found out about the transformation of ordinary housing into social one and the conditions for internally displaced persons to receive it.
#internally displaced persons
#war
#reconstruction
#advice
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13.06.2023
New Guidelines from U-LEAD: accounting and reporting in municipalities
Programme experts have developed Guidelines for Accounting and Reporting in Municipalities for more efficient accounting and proper display of calculations in financial reporting.
#finances
#advice
#accounting
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06.06.2023
Memoranda on the reconstruction of schools damaged by the war were concluded
Charitable organization “Charity Foundation “Brave” signed memoranda with six municipalities of Kyiv and Chernihiv regions on reconstructing schools that suffered from full-scale Russian invasion in 2022-2023. Schools will be repaired within the program U-LEAD with Europe with the financial support of the Service of Foreign Policy Instruments of the European Commission.
#international cooperation
#war
#reconstruction
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02.06.2023
U-LEAD helps municipalities stabilise budget processes in wartime
Over the course of six weeks, 100 employees of local financial bodies will learn how to manage municipal resources more effectively, analyse and identify reserves and propose steps to stabilise local budgets, and U-LEAD experts and the experience of other municipalities will help them in this.
#local budgets
#lsg
#finances
#steps for specialists
#training programmes
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31.05.2023
A U-LEAD expert answers questions about the duration of the educational process, returning students and grading them
Completion of the 2022-2023 academic year, grading students who studied in two different schools, how the final grades are calculated — read the article to find out about all this and more.
#education
#war
#advice
#schools
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31.05.2023
With the support of U-LEAD, a municipality from the Kherson oblast is recovering its energy independence
The Beryslav municipality will create an enterprise for the production of fuel briquettes from straw to supply heating to a kindergarten. They will also implement an energy management system and scale up the experience of using biofuel to other municipal institutions and households in the region.
#energy security
#war
#reconstruction
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30.05.2023
Expert: Despite the war, municipalities must release public information as per the laws
Read more to learn about the balance between transparency and security, requirements for local self-government to release information under martial law and the use of the “three-fold test” in this process, as well as how the municipalities can determine whether to restrict access to the information.
#advice
#legislation
#war
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22.05.2023
Municipalities establish cooperation with the Economic Security Bureau of Ukraine with the support of U-LEAD with Europe
The Programme helped their representatives to discuss potential avenues of interaction. The key directions of the cooperation should be economic security and an increase of revenues to local budgets.
#economy
#local budgets
#news
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15.05.2023
The war affects education: What is the educational and psychological damage?
How to properly end the most difficult school year in our history, and should local self-government compensate children for lost opportunities?
#war
#education
#advice
#schools
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04.05.2023
48 municipalities are working on creating effective internal control and audit systems
With the help of U-LEAD, finance teams are preparing documents that will meet all up-to-date budget legislation requirements.
#news
#local budgets
#training programmes
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03.05.2023
Municipality of Tsyrkuny, Kharkiv oblast, received over EUR 30,000 worth of international aid from U-LEAD
The territory of the Tsyrkuny Village Council was significantly damaged during the war, as the municipality was occupied from the first day of the invasion and has been under constant shelling since the liberation.
#international support
#war
#news
#recovery
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02.05.2023
U-LEAD invites you to participate in the new Training program "Steps for Specialists. Budget stabilization plan"
Make more efficient spending of budget funds, improve your reactions to management challenges and establish cooperation with colleagues from other areas! The new U-LEAD with Europe Training Programme will help you.
#training programmes
#steps for specialists
#local budgets
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03.04.2023
"IDPs - are our people!" - online visit to Nekhvoroshcha
Visit a municipality that has a strategic approach to working with IDPs.
#internally displaced persons
#war
#training programmes
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30.03.2023
In 2022, 14 municipalities of the Zhytomyr oblast received almost EUR 1,000,000 in aid from U-LEAD
These were mainly packages with equipment and materials for stabilising the energy system and assisting in housing IDPs.
#news
#training programmes
#finances
#local budgets
#emergency aid
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29.03.2023
Why do municipalities need energy policies?
A series of educational and advisory events on energy security continues.
#energy security
#advice
#war
#news
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24.03.2023
Generators in the summer for electricity in the winter
How a municipality in the Vinnytsia region sheltered IDPs and kept them from giving up hope in the darkest winter hour
#war
#energy security
#emergency aid
#internally displaced persons
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21.03.2023
In 2022, the municipalities of the Chernihiv oblast received almost EUR 1 million in aid from U-LEAD
Equipment and materials to stabilise the energy infrastructure and assist in the housing of IDPs were the most expensive.
#news
#training programmes
#finances
#local budgets
#emergency aid
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17.03.2023
Digitization of Ukrainian municipalities: leaders of digital transformation discussed possibilities and prospects
The program “Accelerator of Digital Resilience “Hromada 4.0”, developed by the international organization SocialBoost with the support of the Ministry of Digital Transformation of Ukraine and U-LEAD with Europe, has been launched. Digital transformation leaders discussed the role of digitalization in rebuilding and restoring municipalities.
#news
#digitalization
#digital transformation
#MinDigit
#war
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14.03.2023
Certification of local self-government officials under martial law
U-LEAD experts discussed its procedure.
#war
#advice
#legislation
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09.03.2023
How does martial law affect access to public information? U-LEAD experts explain
Since the outset of the full-scale invasion, information security, protection of personal data and counteracting misinformation in the municipalities have become critical challenges for local self-government.
#war
#public information
#legislation
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01.03.2023
Assessing the effectiveness of budget programmes: procedure during martial law
This topic was discussed at the event “Implementation of Passports of Budget Programmes: Reporting and Performance Assessment” held by U-LEAD for the municipalities of Donetsk, Luhansk, Kharkiv, Sumy, Poltava and Cherkasy oblasts.
#local budgets
#war
#advice
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28.02.2023
A series of educational and advisory events on energy security in municipalities launched
Experts will help analyse their energy potential, determine goals for increasing the level of energy security and navigate the expediency of renewable energy projects.
#energy security
#advice
#war
#news
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28.02.2023
Prohibition or permission to travel abroad. Who in the municipalities is affected by the new Law?
The Government has amended the rules for crossing the border, introducing a number of restrictions that also affect local self-government.
#legislation
#news
#war
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27.02.2023
About territories where you can not pay some types of taxes - a conversation with experts in the Kharkiv oblast
The regional office of the Programme, together with the Main Department of the State Tax Service in the Kharkiv oblast, organised an information session for more than 40 municipalities.
#legislation
#finances
#news
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24.02.2023
Yurii Bova: Strong local self-government as a fundament for Ukraine’s resilience – the case of Trostianets
A year of full-scale war in Ukraine has passed. These were 12 months of very intensive combat on the frontlines, but at the same time this war demonstrated heroic resistance and resilience of many Ukrainian civilians and their municipalities. Among the most crucial pillars of Ukraine’s defense is local self-government.
#war
#recovery
#interview
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16.02.2023
U-LEAD experts in partnership with the State Tax Service explain legislative innovations to municipalities
The U-LEAD with Europe Programme works together with partners to improve the tax culture of the population and the businesses community.
#legislation
#finances
#news
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13.02.2023
How to stabilise the municipal budget system? Tips from U-LEAD
Finance professionals of 40 municipalities from all over the country gained practical skills in developing and implementing measures to stabilise the financial situation of municipalities.
#finances
#news
#local budgets
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31.01.2023
U-LEAD trains municipalities to create budget programme passports under martial law
The Programme experts are committed to providing advisory support in various areas of municipal life in wartime.
#local budgets
#news
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28.12.2022
Municipality in Odesa region was able to save a quarter of a million hryvnias through participation in the U-LEAD project
Having received guidance and advice, as well as practical knowledge under the Budget Stabilisation Plan project implemented by U-LEAD with Europe, the finance professionals of the Marazliivka municipality (Odesa region) were able to cut local budget spending by UAH 250,000.
#municipality
#local budgets
#savings
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20.12.2022
Organisation of the process of debris management in municipalities: first steps to be taken
U-LEAD with Europe Programme helps municipalities to overcome daily negative consequences of the aggression of the russian federation (rf). The issue of debris management requires special attention among many other consequences and challenges.
#waste management
#war
#advice
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01.12.2022
How can municipalities recover documents lost due to the war?
U-LEAD experts answer this question.
#advice
#document management
#war
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30.11.2022
Municipalities Are Learning to Provide Their Residents with Shelters
The need for protective structures, their types and construction-related legislation in the latest U-LEAD information session.
#war
#shelter
#news
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29.11.2022
Women’s Leadership in Wartime: Contributing to Victory at the Local Level
Read our big article to learn about the challenges of the great war, the work of female heads of municipalities and the Sixth Ukrainian Women’s Congress supported by U-LEAD.
#war
#gender aspects
#woman's leadership
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26.11.2022
Municipal professionals from the Odesa and Zaporizhzhia oblasts learn best food security practices from their neighbours
U-LEAD experts help them develop programmes to increase resilience and self-sufficiency in wartime.
#food security
#war
#advice
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18.11.2022
What makes municipalities resilient — the first lessons after February 24
It is already obvious that a full-scale invasion of Ukraine is not taking place according to the initial scenario. Vox Ukraine writes about the little-discussed, but crucially important factor that helped the country to survive.
#analytics
#war
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09.11.2022
U-LEAD teaches financial autonomy to municipal educational institutions
An info session on this was held for the municipalities of the Kharkiv region. Accounting for autonomous educational institutions and the peculiarities of labour relations with employees of educational institutions under martial law were also discussed.
#education
#finances
#advice
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08.11.2022
U-LEAD experts help municipalities draft local budgets for 2023
This was the topic of the info session that the team of the Regional Office of U-LEAD with Europe in the Cherkasy region recently organised for financial experts from the municipalities of the Cherkasy, Poltava, Sumy, Donetsk and Luhansk regions.
#local budgets
#news
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31.10.2022
U-LEAD and tax service experts help the municipalities of the Dnipropetrovsk oblast to prepare for the new budget year
In wartime, it is important for municipalities to support the interaction of the local self-government and tax service bodies in the process of preparing draft local budgets for 2023.
#news
#local budgets
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31.10.2022
U-LEAD experts help municipalities develop food security programmes
The U-LEAD with Europe Programme is committed to providing comprehensive help to municipalities to overcome the challenges caused by the war.
#war
#advice
#food security
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22.10.2022
In Mezhova municipality, U-LEAD’s mobile Administrative Service Centre helps residents affected by shelling
Mezhova Village Council was one of the first in Ukraine to receive a mobile ASC with U-LEAD's support.
#news
#war
#Administrative Service Center
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20.10.2022
Waste management in wartime: tips for municipalities (INFOGRAPHIC)
The war affected and changed the municipalities of Ukraine. Many Ukrainians were forced to leave their homes, which caused a change in the load on critical infrastructure in most municipalities. Municipal waste management is no exception.
#waste management
#advice
#war
#internally displaced persons
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26.10.2021
Vinnytsia oblast communities to pay national budget uah353 mln in reverse subsidies in 2022
Next year the communities that exist in the region will pay UAH353 million worth of reverse subsidies to the national budget. The base subsidies, however, will be twice as big, exceeding UAH539 million.
#local budgets
#reverse subsidies
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