The article examines the essence of medium-term budget planning, its tasks and stages of development in world, in particular European practice. The expediency of using a multi-year approach in the budget process and its advantages and disadvantages are proved. The peculiarities of medium-term budget planning of its function and methods of application in Ukraine are grounded. The toolkit and key elements to be implemented in the medium-term planning system according to the recommendations of the European Commission are described. The peculiarities of implementation of the program-target method as the most effective form of budgeting both at the state and regional levels are characterized. The directions of improvement of strategic financial management by means of introduction of budgetary medium-term planning in budgetary practice of Ukraine are determined. It is proved that the significance and urgency of medium-term budget planning in the budget process is quite significant, and most importantly, it is economically justified from the standpoint of all participants in budget relations. It is necessary to understand and note that the best international, in particular, European experience, should be a diagnostic indicator, not a template used to implement reforms. The main task is to develop procedures and mechanisms that will allow sector ministries and departments to plan expenditures based on reasonable assumptions about available budget resources and the state - to ensure transparency, flexibility and the possibility of operative adjustment of budget items taking into account changes in the budget policy of the country.
