Business news from Ukraine

UKRAINIAN CABINET OF MINISTERS EXPECTS REDUCTION OF BUDGET DEFICIT BY HALF

According to Prime Minister Denys Shmyhal, the approved documents provide for the reduction of the budget deficit by almost half and the return of this indicator to the planned 3% in 2023.
“The public debt is planned to be reduced to less than 50% of GDP,” Shmyhal said.
At the same time, from 2023, Ukraine will be able to enter a stable trend of economic development by 5% per year, he said.

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NOVA POSHTA INCREASES PAYMENTS TO BUDGET IN 2020

The Nova Poshta group of companies paid UAH 5 billion in taxes and fees to state and local budgets in 2020, which is 20% more than in 2019, the company’s press service said on Friday.
According to the press service, over the past year Nova Poshta rose from 27th to 19th place in the rating of the largest taxpayers in Ukraine.
Over the past three years, Nova Poshta has paid more than UAH 12 billion in taxes to the budgets of all levels and funds.
The press service said that the company operates within the framework of Ukrainian legislation, pays officially declared salaries to employees and provides them with medical insurance. In addition, Nova Poshta helps hospitals and socially vulnerable groups of the population.
“We do not stay away from life in Ukraine and actively help those who are in need: hospitals and universities, volunteers and socially vulnerable groups of the population. We care of what country we live and work in,” Chief Financial Officer of the group Petro Fokov said.
The Nova Poshta group of companies includes, in particular, the companies Nova Poshta, NP Logistic, NovaPay and Nova Poshta Global.
In 2019, the group transferred more than UAH 4 billion of taxes and fees to the Ukrainian budget.

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STATE BUDGET FOR 2021 PROVIDES FOR UAH 81.3 BLN FOR ROADS

The national budget of Ukraine for 2021 foresees UAH 81.3 billion for the development of road infrastructure, according to the presentation of the document prepared by the Ministry of Finance and posted on the website of the Cabinet of Ministers.
Out of the indicated UAH 81.3 billion for the development of road infrastructure, UAH 66.4 billion will be financed from the Road Fund. In particular, UAH 31 billion will be used for the development and maintenance of highways of state importance, UAH 18.1 billion for the construction, reconstruction and maintenance of local roads (subvention).
Another UAH 14.8 billion are foreseen for the fulfillment of debt obligations on borrowings under state guarantees for the development of the road network. Also, UAH 2.5 billion in the 2021 state budget has been allocated to ensure road safety.
The development of the road network is also expected at the expense of funds for the implementation of state investment projects in the amount of UAH 250 million, funds of international financial organizations in the amount of UAH 4.6 billion and through borrowing under state guarantees in the amount of UAH 10 billion.
At the same time, the resources of local budgets for the development of municipal roads and streets of united territorial communities (due to excise tax on fuel) is estimated at UAH 8.05 billion.

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KYIV BUDGET PLANNED AT UAH 59.2 BLN

The draft budget of Kyiv for 2021 provides for an increase in the revenue part by 1.3% in comparison with the expected implementation of the budget for 2020, to UAH 59.2 billion, expenses are planned at the level of UAH 56.6 billion, the press service of Kyiv City State Administration has said.
According to the report, the draft budget provides for the allocation of more than UAH 10 billion for infrastructure development, including UAH 3.4 billion for construction and reconstruction. Another UAH 1.5 billion was allocated for the municipal improvement sector.
“Due to this resource, it is planned to continue the construction of the metro line to the Vynohradar residential area, the Podilsky bridge crossing, the technical re-equipment of the Energia plant, the construction and reconstruction of preschool and educational institutions,” the director of the administration’s finance department, Volodymyr Repik, said.
According to him, spending on education accounts for 43% of the total forecast amount – UAH 24.1 billion, which is UAH 3.2 billion more than in 2020. In addition, the wage fund for teachers will amount to UAH 2.6 billion. In general, the wage fund for workers in the public and municipal sectors will increase by 26.3%.
The draft document also provides for the allocation of UAH 4.5 billion for social protection and security.
In addition, the budget provides for the repayment of UAH 2.7 billion of internal and external loans of the city.

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DONBASENERGO TRANSFERRED UAH 113 MLN TO BUDGET IN NOV

In November 2020, Donbasenergo PJSC transferred UAH 113.1 million of taxes and other mandatory payments to the state and local budgets, which is 3.2% (UAH 3.7 million) less than in November 2019.
According to the company’s press release, UAH 103.2 million of payments were transferred to the state and local budgets. Donbasenergo also paid UAH 9.9 million of excise tax, which is 3.2% from each UAH 1/kWh of electricity generated.
Electricity generation by the Slovianska TPP in November amounted to 327.948 kWh, in January-November – 2.9 million kWh, and supply – 296.282 kWh and 2.5 million kWh, respectively.

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CONSULTATIONS NATIONAL BUDGET FOR 2021 TO BEGIN NEXT WEEK

Consultations on the national budget for 2021 will begin next week, head of the Servant of the People faction David Arakhamia has stated.
“Regarding the budget – in a working order, everything is fine, as it was previously agreed. Next week, consultations will begin. And I think that we will go to the vote next week,” he told reporters on Saturday after a joint meeting of the leadership of the parliament and the government and the faction leaders.
“At the same time, when asked when the issue of considering the state budget may appear on the agenda of the Verkhovna Rada, the politician said that “it may even appear before Friday.”
As reported, on November 5, the Verkhovna Rada supported, with a delay of two weeks from the schedule laid down in the Budget Code, government bill No. 4000 on the national budget of Ukraine for 2021 at first reading, having adopted budgetary conclusions and recommending that the government take them into account when preparing the document for the second reading and increase revenues by UAH 20.2 billion.

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