01 November 2022, Tuesday, 01:22 203

Cabinet Approves Draft State Budget-2023 For 2nd Reading In Rada, Increasing Spending By Almost UAH 70 Billion

Editor: Tetiana Herasimova

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The Cabinet of Ministers has approved the draft state budget for 2023 for the second reading in the Verkhovna Rada, spending is proposed to increase by almost UAH 70 billion. This is stated in the message of the Ministry of Finance, Ukrainian News Agency reports.

"The total resource for national security and defense remained unchanged - UAH 1,141.1 billion, or 18.2% of GDP. The projected budget deficit of 2023 is more than 20% of GDP. The Ministry of Finance continues to work on attracting international assistance from the EU, the U.S., the IMF and our other reliable partners to cover the deficit," said Finance Minister Serhii Marchenko.

It is planned to raise USD 38 billion.

In the approved bill, the government took into account the adjusted GDP growth forecast for 2023 to 3.2% (instead of the previous forecast of 4.6%), taking into account the preservation of high security risks, as well as the risks of continuing attacks on objects of the energy system of Ukraine and other objects of critical infrastructure of Ukraine.

Instead, the inflation forecast decreased from 30% to 28%.

Due to adjusted macro indicators and tax changes, the revenue part of the state budget was proposed to be increased by more than UAH 50 billion. Thus, the revenues of the state budget 2023 are provided in the amount of UAH 1.3 trillion.

Spending will amount to UAH 2.6 trillion, which is UAH 66.8 billion more than in the draft state budget for 2023, presented for the first reading.

In particular, the volume of expenses for the payment of pensions is increased (by UAH 38.9 billion - up to UAH 271.9 billion), the Fund for the Elimination of the Consequences of Armed Aggression (by UAH 16.1 billion - up to UAH 35.5 billion), as well as for scientific and technical activities, preferential loans for internally displaced persons and for the development of entrepreneurship.

As Ukrainian News Agency earlier reported, on October 7, the Verkhovna Rada adopted as a whole the conclusions and proposals to the draft law on the state budget for 2023, which means the adoption of the state budget in the first reading.