Wednesday, June 14 2017 23:08 EEST
Ukraine
Cabinet okays budget resolution for three years ahead
Cabinet,  Okays,  Dudget,  Resolution, Ahead

Ukraine's Cabinet of Ministers for the first time in the history of budgeting in independent Ukraine has approved a medium-term budget resolution for 2018-2020 with economic growth indicators projected at 3%, 4% and 5% for the next three years, respectively.

The document was approved at a government meeting on Wednesday, June 14.

"We've decided to change the approach itself and switch to medium-term budget planning. This means that the plan will be for at least three years: 2018, 2019 and 2020, where we clearly determine our economic indicators, budgets and priorities for the country for the three years. We orient ourselves towards consistent economic growth: 2% [in 2017], 3%, 4%, 5%," Prime Minister Volodymyr Groysman said when introducing the resolution.

In turn, Finance Minister Oleksandr Danyliuk gave more details about the document. In his words, the resolution suggests a reduction in the state budget deficit to 2% from 3% of GDP by 2020, public debt should shrink to 55% of GDP from 66.8% of GDP.

In his words, the resolution is based on the condition that the International Monetary Fund's lending program is implemented in full.

Budget transfers to cover the deficit of the Pension Fund each of the years will amount to UAH 141.3 billion. The budget will allocate UAH 453 million for land reform in 2018, UAH 132 million in 2019, UAH 297 million in 2020. Privatization revenues are projected at UAH 17.1 billion in 2018 and 2019 each, and UAH 0.5 billion in 2020.

Budget spending on road construction is planned at UAH 154 billion for the next three years.

"Every citizen should feel a positive effect. The adoption of the budget resolution will ensure consistency in the formation of the budgetary policy for the next three years, as well as the effectiveness of the use of public funds," Danyliuk said.

As UNIAN reported, on March 23, 2017, the Verkhovna Rada, Ukraine's parliament, adopted a government-drafted bill as a basis and as a whole to amend the Budget Code of Ukraine by introducing medium-term budget planning.

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