Text 5 the state budget of ukraine

Exercise 5.1 Study the vocabulary:

1) estimate	1) оцінка, кошторис
2) national revenue(s)	2) державні доходи
3) fiscal year	3) фінансовий рік
4) expenditure	4) витрати
5) deficit	5) дефіцит, нестача
6) forecasting	6) прогнозування
7) budget preparation	7) підготовка бюджету
8) adequate planning	8) розумне планування
9) planning of recurrent and capital expenditure	9) планування поточних та капітальних витрат
10) critically	10) вирішальним чином
11) accurate forecast	11) точний прогноз
12. availability	12) наявність
13. determination of the overall deficit	13) визначення, розрахунок загального бюджету
14. macroeconomic impact	14) макроекономічний вплив
15. extrabudgetary and reserve funds	15) позабюджетні та резервні фонди
16. increasingly	16) в більшій мірі, все більше
17. autonomous budget	17) автономний бюджет
18. to compile and present the budget	18) скласти та представити бюджет
19. expenditure responsibilities	19) обов’язки за витратами
20. revenue-raising sources	20) джерела отримання доходів
21. execution of the budget	21) виконання бюджету
22. Accounts Chamber	22) Рахункова палата
23. National Treasury	23) система державного казначейства
24. elaborate	24) розробляти
25. treasury system	25) система казначейства
26. misuses of funds	26) порушення у використанні коштів
27. ex-post audit	27) аудит (ревізія) використання коштів

Exercise 5.2 Read and translate the text:

The major instrument of any financial system is the budget. In a market-oriented economy, the budget is the most important tool for achieving national priority and goals through the allocation and distribution of resources, and the maintenance of stable macroeconomic environment.

The budget is an estimate of national revenue and expenditure for the ensuing fiscal year. When expenditure exceeds the revenue the budget has a deficit.

Revenue and expenditure forecasting is the most fundamental step in the process of budget preparation. Adequate planning of recurrent and capital expenditure depends critically on an accurate forecast of revenue availability. The determination of the expected overall deficit in the public sector and therefore the macroeconomic impact of fiscal policy requires accurate forecast of tax collection and expenditures.

In Ukraine, public finance is a sum of the budgets of all levels of subjects of the state, extrabudgetary and reserve funds.

An accurate revenue forecast is most critical at the national level of government but it is also important for all level governments because over the last several years they have worked with increasingly autonomous budgets.

Budget preparation at the national level involves a number of institutions. The Ministry of Finance (MoF) is the central coordinating institution in charge of compiling and presenting the budget. It has major inputs from ministries in various sectors of the economy and the state tax bodies.

The budget process includes all activities of government bodies on formulation, consideration, approval and execution of the budget.

The system of governance is moving from a centralized one to a more decentralized. The local authorities have been given considerable budget autonomy now.

Different governing bodies are involved in the process. The executive branch is responsible for the preparation and execution of the budget; budget consideration and approval is the responsibility of the legislative branch. Deputies have submitted a lot of amendments to the draft budget about restructuring debts and paying off pensions and children benefits.

The Accounts Chamber and the National Treasury System controlling the execution of the budget. The Government has done a lot to create a new budget system and to elaborate a new budget policy and methods of budget planning.

Exercise 5.3 Read the text and match the equivalents:

1.Accounts Chamber	a) точний прогноз
2. The executive branch	b) автономний бюджет
3. Revenue-raising sources	c) джерела отримання доходів
4. National Treasury	d) збирання податків
5. System of governance	e) система управління
6. Autonomous budget	f) виконавча гілка влади
7. Tax collection	g) Державне Казначейство
8. Accurate forecast	h) Рахункова палата
9. Fiscal year	i) скласти та представити бюджет
10. To compile and present the budget	j) фінансовий рік

Exercise 5.4 Read the text and match word combinations from the text:

1.Budget	a) bodies
2. National	b) benefits
3. Fiscal	c) authorities
4. Accurate	d) budget
5. Financial	e) system
6. Autonomous	f) forecast
7. Local	g) year
8. Executive	h) revenue
9. Children	i) branch
10. Tax	j) preparation

Exercise 5.5 Read the text and choose the best to complete the sentence:

1. The executive branch is responsible for the preparation and ….

1. approval of the budget;

2. execution of the budget;

3. regulating revenue;

2. The Accounts Chamber and the National Treasury System controlling…..

a) the tax collecting;

b) the budget process;

c) the execution of the budget;

3. The Government has done a lot to create……

a) a new budget system;

b) a new financial system;

c) a sphere of economic relations;

4. The local authorities have been given considerable ……

a) the budget regime;

b) budget autonomy;

c) local benefits;

5. Budget preparation at the national level involves……

a) a number of ministries;

b) a number of local organizations;

c) a number of institutions;

Exercise 5.6 Read the paragraphs of the text and fill in the gaps:

The budget process includes all activities of 1…..on formulation, consideration, approval and 2….. of the budget. The system of governance is moving from a 3…… one to a more decentralized. The local 4……. have been given considerable 5…….. now.

Different governing bodies are involved in 6…… The executive branch is 7……. the preparation and execution of the budget; budget consideration and approval is the responsibility of the 8…… Deputies have submitted a lot of 9…… to the draft budget about restructuring 10…… and paying off pensions and children benefits.

UNIT 6 MONETARY AND BANKING SYSTEMS IN UKRAINE