PM considers it inappropriate to delay with approval of 2018 State Budget

It is crucial to ensure discussion and final approval of the draft State Budget for 2018 to take place in early December - during a plenary week of Verkhovna Rada of Ukraine in December. This was stated by Prime Minister of Ukraine Volodymyr Groysman on air of 112.UA TV channel.

He thanked the parliamentarians for supporting the draft state budget in the first reading and the process of preparation. "Now there is no need to delay the adoption of the budget to make it "a stocking-stuffer”. It is necessary and we have every opportunity to approve the State Budget at the first plenary week of December. We should get back to our daily agenda to ensure normal life within the country - predictability and timeliness of decision-making," said Volodymyr Groysman. “We will demonstrate unity and all together – the President, Parliament, Government - will adopt the decision”.

 Background

On November 14, the Verkhovna Rada of Ukraine endorsed in the first reading drafted by the Government State Budget for 2018. It was developed within the framework of three-year budget planning with taking into account recommendations of international financial organizations, and basing on the deficit figure at 2.4% of GDP, with a forecast inflation rate of 7% and a 3% economy growth. The decision was voted for by 260 MPs. Apart from that, in the first reading were backed amendments to the Budget and Tax Codes.

Commenting on the progress of the budget process, Prime Minister of Ukraine Volodymyr Groysman stressed that the budget focuses on development of the economy, accounting for the interests of decentralization, and stipulates for the landmarks of the economy growth.

The draft State Budget was submitted by the Cabinet of Ministers in line with the requirements of the Budget Code on September 15, and it wasn’t withdrawn from the Parliament for revision. The document envisages a significant increase in funding for security and defense, the introduction of a number of support programs for the real sector - primarily the agrarian sector and road construction, as well as improving social standards through increased funding for healthcare and education sectors. As is expected, budget revenues will grow by 15% compared to the current year – up to over UAH 1 trillion solely due to economic growth, rather than an increase in tax load. Minimum wage will raise by 16% - up to UAH 3723. Prime Minister of Ukraine Volodymyr Groysman assured the following 2018 should become the year of Ukraine's success, while the elaborated by the Government draft State Budget will contribute to achieving this goal.