USAID Project
Strengthening Local Financial Initiative (SLFI-II) Implementation
2011 – 2018
About the Project
From 2011 to 2018, IBSER implemented the “Strengthening Local Financial Initiative (LFI-II) Implementation” project with the support of the United States Agency for International Development (USAID).
Project Goal
The goal of the LFI-II project was to:
● Enhance the effectiveness and transparency of budget fund utilization through the introduction of the program-based budgeting method for local budgets and the implementation of participatory budgeting;
● Implement the Extractive Industries Transparency Initiative (EITI);
● Launch participatory budgeting projects in 65 cities selected on a competitive basis;
● Improve public awareness of the state budgeting process, revenues, and expenditures through the preparation and dissemination of regular publications on a monthly, quarterly, and annual basis.
National and Local-Level Activities
At the national level, the project provided assistance to the Ministry of Finance of Ukraine, other ministries, and relevant parliamentary committees in improving current legislation, developing methodologies, and implementing regulatory acts aimed at supporting local socio-economic development and establishing an effective and transparent budgeting system.
At the local level, LFI-II conducted trainings for local self-government bodies and regional branches of the State Treasury, provided consultations on the development and implementation of budget programs based on program-based budgeting (PBB), and supported the introduction of monitoring systems for energy expenditures.
Additionally, the project partnered with municipalities to strengthen the capacity of utility companies in modern financial analysis and planning. A special methodology was developed under which utility company staff received training and consultations as part of implementing locally designed projects.
Project Results
● Developed the concept of participatory budgeting in Ukraine;
● Designed, adapted, and deployed an automated electronic management system for participatory budgeting processes in 15 cities;
● Prepared and published 4 manuals on budgeting and financial processes;
● Provided support to the Ministry of Finance in launching the “E-Data” portal and conducted training sessions for local government representatives.