Rada Increases Expenditures Of 2023 State Budget By UAH 537.2 Billion

The Verkhovna Rada increased state budget expenditures for 2023 by UAH 537.2 billion.

325 MPs voted for the adoption of bill 9105 as a whole, with the minimum required of 226, Ukrainian News Agency reports.

Expenditures are increasing by UAH 537.2 billion, of which 96.5% are directed to the national security and defense sector.

The main articles of increase in expenses:

- UAH 518.2 billion - an increase in spending on the national security and defense sector (most of these funds are directed to general spending on the financial support of military personnel);

- UAH 19 billion - replenishment of the Reserve Fund of the state budget, which is used for unforeseen and urgent measures (this year, for example, the funds of the reserve fund were directed to the construction of fortifications).

Sources of coverage of such additional expenses:

- UAH 419.3 billion - an increase in the state budget deficit (actually: internal and external borrowing);

- UAH 60.7 billion - an increase in state budget revenues (due to an increase in income tax for individuals, VAT on manufactured goods and part of the net profit of state banks);

- UAH 50.3 billion - reduction of expenditures on servicing the state debt;

- UAH 6.9 billion - reduction of costs for providing state guarantees.

As Ukrainian News Agency earlier reported, in January-February of this year, the state budget was implemented with a deficit in the amount of UAH 161.1 billion.