Budget classification

The Lending classification of budget, according to para. 6 of art. 10 of the Budget Code of Ukraine, has the following levels of detail:

• Internal Lending – includes lending to other levels of government, state-owned enterprises, and financial institutions. The provision of internal loans and the repayment of internal loans are separately distinguished;
• External Lending – includes lending and repayment of loans to foreign countries, international organisations, enterprises, individuals, and other economic entities. The provision of external loans and the repayment of external loans are separately distinguished.

Lending includes payments by budgets of all levels that result in financial claims to other economic entities that require mandatory repayment, including the reserve fund of the state and local budgets, which are allocated on a repayment basis.

The purpose of such payments is to implement economic policy, not to manage liquidity or generate income. By its very nature, budget lending is not a budget expenditure. As a result of lending at the expense of budget funds, borrowers incur liabilities to the budget, and these funds must be returned to the budget, which are budget resources that can be used for further lending or for expenditures.

The Lending classification of budget was approved by the order of the Ministry of Finance of Ukraine dated 14 January 2011, No. 11 “On Budget Classification” and is available through the public API (Application Programming Interface).