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Published on February 7, 2022

UNDP provides recommendations to assist Ukraine in increasing funding for sustainable development


UNDP has presented the results of its Development Finance Assessment to help the government to develop policies and measures to increase funding of the SDG agenda.

Kyiv, 3 February 2022 – The United Nations Development Programme (UNDP) in Ukraine today presented the results of the Development Finance Assessment (DFA) to government institutions during a meeting of the Working Group on the Integrated National Financing Framework (INFF).

The Development Finance Assessment is a tool developed by UNDP to support governments to respond to the COVID-19 pandemic and to establish integrated national funding systems for further, much better funding of the SDG agenda.

During the meeting Dafina GerchevaUNDP Resident Representative in Ukraine, stressed that supporting the Government of Ukraine to address all its priorities for the 2030 Sustainable Development Goals and to attract funding to achieve them was one of the key areas of UNDP's work.

“As a result of this Development Finance Assessment, an overview of the financial landscape of Ukraine within the SDGs was obtained in terms of cost models and allocation of funds at national level, as well as policies and institutions to regulate every aspect of public and private funding in Ukraine,” Gercheva said.

“Understanding what development funding is available, and where it is directed, will help the Government of Ukraine to develop measures and policies, both at state level and in the regions to increase this funding.”

Yevhen Perelyhin, Head of the Office of the Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine, stressed that the Sustainable Development Goals should be an integral part of strategic documents. In particular, key performance indicators for multiple strategies should include SDG targets, and action plans should also include targets.

“Sustainable development and European integration are closely linked. Therefore, the support and assistance of United Nations agencies to the Government of Ukraine is crucial for the implementation of reforms in Ukraine,” Perelyhin said.

“One of the priorities of the government's work on Ukraine's European and Euro-Atlantic integration is implementation of European Green Course plans and joint activities by Ukrainian institutions and international financial institutions to finance sustainable development. And we are glad that we can work with experts from United Nations agencies on these areas to achieve our common goals,” Perelyhin added.

In the framework of the United Nations Joint Programme on SDG financing, at the government’s request the Institute for Economic Research and Political Consulting conducted initial data collection and analysis. The analysis focused on assessing sources of financing for development in terms of the SDGs in Ukraine (both private and public). It was conducted at national level, as well as at the level of Donetsk and Kherson oblasts. Separate reports from the DFA in the oblasts are important in view of the decentralization reform, as well as the various levels of development and the different challenges and tasks the oblasts face.

The DFA at national level show that most SDGs are funded from state and local budgets, by international financial institutions (IFIs) and by private investment. Only Goals 13, 14 and 15 are currently lacking funding and require international technical assistance.

As for the regions, the assessment showed that all sources of financing for development are available in Donetsk Oblast, and it has the potential for growth. To do this, local authorities should improve the quality of taxes and efficiency of budget expenditure, increase cooperation with IFIs, and involve private business to finance priorities, in particular by creating quality infrastructure. Kherson Oblast also has all sources of financing for development, but all of them have potential for growth. To this end, local authorities should improve the quality of tax administration and the efficiency of budget expenditures, and take steps to improve the investment climate, in particular by improving infrastructure.

Anatolii Kutsevol, Deputy State Secretary of the Cabinet of Ministers of Ukraine, stressed that the results of the Development Finance Assessment and the recommendations provided will play an important role in supporting the Government of Ukraine to further implement the Sustainable Development Goals in national and subnational strategic planning. They will form the basis for the Government's dialogue on SDG financing with stakeholders, including business and IFIs.

The event was attended by Anatoliy Kutsevol, Deputy State Secretary of the Cabinet of Ministers of Ukraine; Yevhen Perelyhin, Head of the Office of the Vice Prime Minister on European and Euro-Atlantic Integration of Ukraine; Dafina Gercheva, UNDP Resident Representative; and representatives of ministries, national institutions, the banking sector and Donetsk and Kherson oblast administrations.

Since mid-2020, UNDP, together with its sister United Nations agencies – WHO, UNICEF and the UNECE, has been working to support the Integrated National Financing Framework for Sustainable Development at national and sub-national level, in order to support the government to reach a consensus on financial flows and reforms related to the financing of the SDG agenda.