The Verkhovna Rada of Ukraine received the draft State Budget for 2021, prepared by the Cabinet of Ministers of Ukraine.
On September 14, the relevant draft Law №4000 “On the State Budget of Ukraine for 2021” was registered on the website of the Verkhovna Rada and submitted to the parliamentary committees for consideration.
10 facts about the draft State Budget for 2021
- A 30% increase in the salaries of teachers and doctors is planned.
- The minimum wage increase in 2021. Two-stage increase: from January 1 to UAH 6,000 and from July 1 to UAH 6,500.
- More roads will be repaired under the President's "Great Construction" Program. Funding will grow by 16% and will amount to UAH 150 billion. An absolute record throughout the entire history of independence.
- Apart from the planned indexation of pensions, the program of additional payments to pensions for the seniors aged 75-79 will be expanded (currently such a program is in effect only for those over 80). The sum worth UAH 104.1 billion is provided for the payment of benefits, privileges and subsidies. In total, a UAH 323.7 billion resource is provided for social support of people.
- Purchase of vaccines from COVID-19 in the amount of UAH 2.6 billion. As part of the program of medical guarantees to combat COVID-19, it is proposed to allocate UAH 15.8 billion (this includes additional payments for healthcare workers engaged in fighting coronavirus). In addition, other ministries will also provide funding for curbing coronavirus. That is, there will be no separate COVID-19 Response Fund.
- SME support programs - UAH 12 billion. In particular, a UAH 10 billion resource is envisaged for the portfolio guarantee program. Also, UAH 2 billion will be used to compensate for interest on loans for micro and small businesses. In addition, it is planned to support farmers with the resource worth UAH 4.2 billion (a significant share of it will be used to support farmers).
- No increase in taxes is considered. Redistribution of GDP through budget revenues is reduced to 23.5%. A larger resource remains for people and businesses. A UAH 92.3 billion revenue growth will be provided through increased efficiency of tax and customs services operations. At that, there will be a reduction in public debt to GDP by 3.4 percentage points.
- Security and defense expenditures will increase by UAH 21.4 billion (up to UAH 267 billion, or 5.93% of GDP). Payments to the military will be increased, weapons modernization programs will be prolonged.
- Upgrading of railway passenger cars. For the first time, the financial document provides funding to improve the railway passenger infrastructure. It is planned to purchase 100 passenger railway cars and electrify several sections of the railway. In total - UAH 4 billion, which will be transferred by Ukrainian machine-building plants.
- Financial support of the regions - UAH 33.4 billion. It is planned to double the funding of the State Regional Development Fund (up to UAH 9.4 billion).