Rada Adopts State Budget-2021
The Verkhovna Rada has adopted the state budget for 2021.
A total of 289 parliamentarians voted for the corresponding draft law (No. 4000) with the minimum required 226, Ukrainian News Agency reports.
When finalizing the draft state budget-2021 for consideration in the second reading, taking into account some of the proposals of the Rada, the Cabinet of Ministers provided, in comparison with the first reading, an increase in state budget revenues by UAH 21 billion or 2% to UAH 1.092 trillion, a reduction in expenditures by UAH 2.8 billion or 0.2% to UAH 1.347 trillion, reducing the deficit by UAH 23.7 billion to UAH 246.6 billion from 6% to 5.5% of the projected GDP.
The document stipulates the boundary volume of the state-guaranteed debt in the amount of UAH 350.5 billion or 7.8% of GDP, and UAH 69.2 billion more than the debt as of October 31, 2020, and also provides for the boundary volume of state guarantees in 2021 in the amount of UAH 88.7 billion, which corresponds to 9.2% of the revenues of the general fund of the state budget-2021.
Besides, the document provides for proceeds from the privatization of state property in the amount of UAH 12 billion.
According to the decision of the National Security and Defense Council (NSDC), funding for national security and defense is provided in the amount of UAH 267.3 billion or 5.93% of GDP (general fund - UAH 233.1 billion, special fund - UAH 14.1 billion, the right of the Cabinet to provide state guarantees for UAH 20 billion).
The document provides for an increase in the minimum wage from January 2021 from UAH 5,000 to UAH 6,000, from December 2021 - up to UAH 6,500 (previously, an increase to UAH 6,500 was planned from July).
It is also provided for the receipt of UAH 7.4 billion fees for licenses to conduct gambling and lotteries with their directing to a special fund and then for the implementation of measures in the field of healthcare, culture, development of airport infrastructure, socio-economic development of certain territories.
At the same time, GDP growth for the next year is projected at 4.6%, inflation - 7.3%, average monthly salary - UAH 13,600.
Finance Minister Serhii Marchenko, presenting the revised draft state budget-2021 in the parliament before the vote, called it real for implementation.
According to him, the 2021 state budget provides for an increase in salaries for doctors by 30%, for teachers - by 26%, indexation of pensions.
He also noted that in general, the capital expenditures of the state budget-2021 have been increased to UAH 100 billion; it is envisaged to allocate UAH 89 billion for the Big Construction program, UAH 4.5 billion - for the renovation of railways and trains, UAH 2.4 billion hryvnia - for the development of airports.
Marchenko also noted that while preparing the state budget for the second reading, the expenses for the Office of the President were reduced by UAH 273 million.
As Ukrainian News Agency earlier reported, the Cabinet of Ministers submitted the 2021 state budget for the second reading on November 26, later than the deadline set by the Rada - November 19, after agreeing on the parameters of the document with the International Monetary Fund.