Business news from Ukraine

UKRAINE’S STATE BUDGET DEFICIT FOR 2019 COMES TO UAH 78 BLN

The deficit of Ukraine’s state budget for 2019 was UAH 78.05 billion with the ceiling set in the national budget being UAH 91.13 billion, while in 2018 the deficit of the national budget was UAH 59.25 billion with the ceiling of UAH 94.1 billion. According to the updated information posted by the State Treasury Service of Ukraine on its website, the deficit of the general fund was UAH 68.85 billion with the ceiling being UAH 69.62 billion.
In the early days of this year, the Ministry of Finance, citing recent data from the State Treasury Service, reported on the deficit of the national budget last year in the amount of UAH 72.4 billion, or 1.8% of GDP.
The 2019 state budget deficit was almost entirely funded by borrowings, as revenues from privatization amounted to only UAH 550 million, i.e. 3.2% of the initial budget assignment.
In accordance with the updated data of the State Treasury Service, the national budget receipts for 2019 increased 7.6%, to UAH 998.28 billion, including growth of 5.5% for the general fund, to UAH 879.83 billion.
Compared with the indicators laid down in the law on the national budget, the receipts target was met by 99.1%, including 96.9% for the general fund.
Last year, national budget expenditures amounted to UAH 1.073 trillion, which is 8.7% more than the expenses of the national budget 2018, including growth of 8.4% for the general fund, to UAH 952.98 billion.
Compared with the indicators laid down in the law on the national budget, the expenditure target was met by 98.2%, including 96.9% for the general fund.
The national budget of Ukraine for 2020 was approved with receipts of UAH 1.095 trillion, including UAH 975.17 billion for the general fund, and expenditure of UAH 1.182 trillion, including UAH 1.052 trillion for the general fund. The ceiling for the deficit is set at UAH 94.3 billion, or 2.09% of forecast GDP.

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UKRAINIAN PARLIAMENT ADOPTS NATIONAL BUDGET FOR 2020

Ukraine’s Verkhovna Rada has passed a bill on the national budget for 2020 with 280 supporting votes, while at least 226 votes was required. “This budget includes much more funds for infrastructure, medicine, education, and not reduced, but increased expenses for local self-government. Moreover, all transfers and subventions to local budgets, including the State Regional Development Fund, the subvention for social economic development and the subvention for amalgamated territorial communities, are more than last year. And today, with your vote you added UAH 7 billion from the Road Fund,” Finance Minister Oksana Markarova said from the rostrum of the parliament on Thursday.
As reported, the draft national budget of Ukraine for 2020, prepared by the government for second reading, envisages the allocation of UAH 1.2 billion on the creation of the Bureau of Financial Investigations. Some UAH 1.84 billion will be spent on development and implementation of state investment projects, of which UAH 772.5 million will be allocated for healthcare, UAH 390 million – for transport infrastructure, UAH 190 million – for environmental protection, and UAH 180 million – for education.
The draft budget also envisages the allocation of UAH 52.76 million for the Government Debt Management Agency.

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UKRAINIAN BUDGET TO INCREASE FINANCING FOR EDUCATION MINISTRY BY 14%

Financing for the Education and Science Ministry of Ukraine increased by 14% in the draft national budget of Ukraine for 2020, prepared by the government for second reading, to UAH 131.483 billion, as compared with 2019, according to bill No. 2000 dated September 15 amended for second reading.
In particular, UAH 44.331 billion will be allocated for the apparatus of the Education and Science Ministry, of which UAH 134.9 million will be spent on management and administration in the spheres of education and science, UAH 107.6 million – on organization of work of the National Agency for Higher Education Quality Assurance, National Agency for Qualification, education ombudsman, state attestation and accreditation and educational institutions, UAH 200 million – on professional (vocational) training of national significance, and UAH 1.162 billion – on research and development at higher education establishments and scientific institutions.

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UKRAINIAN NATIONAL STATE BUDGET FOR 2020 PROVIDES UAH 73.7 BLN TO FINANCE ROAD INFRASTRUCTURE

The draft national budget of Ukraine for 2020, prepared for second reading, provides for UAH 73.7 billion to finance road infrastructure, which is 36% more than in 2019. According to Minister of Infrastructure Vladyslav Krykliy, the budget for 2020 doubles the cost of road safety to UAH 3.17 billion, and increases by five times financing for the development of airfield complexes, to UAH 1.07 billion.
Some UAH 500 million was laid for the construction and reconstruction of bridges, UAH 116 million for ensuring the operationally safe condition of shipping locks.
In addition, the minister noted that within the framework of projects with international financial organizations, it is planned to develop urban passenger transport in Ukrainian cities (UAH 400 million) and modernize the Ukrainian railway (UAH 200 million).
“From the second half of 2020, we expect additional financing for infrastructure development projects due to excess of customs VAT and excise taxes,” the minister added.

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DRAFT NATIONAL BUDGET OF UKRAINE PROVIDES UAH 15.1 BLN FOR CREATIVE INDUSTRY

Ukrainian Prime Minister Oleksiy Honcharuk has said that the draft national budget of Ukraine for 2020 provides UAH 15.1 billion for creative industry and culture development, which is UAH 2.8 billion more than in 2019.
“Next year we will stimulate mobility for children,” he said during the presentation of the 2020 draft national budget in Kyiv on Tuesday.
Honcharuk added that UAH 500 mln will be allocated for such programs.
In addition, UAH 240 million will be allocated for tourism infrastructure development.

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ZELENSKY SETS TASK TO CUT BUDGET EXPENSES ON MAINTENANCE OF OFFICIALS

Ukrainian President Volodymyr Zelensky at a meeting with top managers of the government and lawmakers has set a task to cut budget expenses on maintenance of officials by 10%. “We held a meeting to prepare the 2020 national budget for second reading. I listened to the Minister of Finance on the main indicators. I set the task to reduce national budget spending on officials for the next year by 10%,” Zelensky said in his Telegram channel on Friday.
The president said that this would save money and allow channeling funds to socially important budget items.
“This reduction should not affect teachers and doctors, those on whom the future of Ukraine depends,” Zelensky said.

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