State Budget 2020: expenditures on security, social care, healthcare, education and infrastructure are increased

On November 14, the Verkhovna Rada of Ukraine passed at second reading and as a whole the bill on the State Budget of Ukraine for 2020.

State budget revenues for 2020 are estimated in the amount of UAH 1,093,700,000,000 notably general fund revenues - UAH 974,700,000,000 and special fund revenues - UAH 119,000,000,000.

State budget expenditures amount to UAH 1,180,100,000,000, including general fund expenditures - UAH 1,052,200,000 and special fund expenditures - UAH 127,900,000,000.

The calculation of budget figures for the second reading encompasses the adjusted macroeconomic indicators according to the I (realistic) scenario, which influenced both revenue and expenditure parts of the budget.

The limit of state budget deficit is preserved at the level of 2.09% of GDP, but was reduced in absolute terms by UAH 0.9 billion due to the change in macro indicators and was determined at UAH 94.3 billion.

The state budget secures the priorities that were initially determined: defense and security, social protection, healthcare, education, infrastructure development.

Funding for the education sector has been increased for the following:

• subvention for implementation of Sustainable School for Better Results program that envisages provision of the necessary equipment for schools to the tune of UAH 3.5 billion;
• subvention for improvement of social protection of certain categories of pedagogical workers of general secondary education institutions worth UAH 3.7 billion;
• support for scientific research by higher education institutions with the best attestation - UAH 0.3 billion.

 For the healthcare sector and further implementation of the reforms expenditures have been increased for:

• centralized purchasing of medicines and medical equipment for the treatment of certain diseases - UAH 3.2 billion;
• modernization and updating of material and technical base of multi-field intensive care hospitals- UAH 1.0 billion;
• medical treatment of citizens abroad - UAH 0.4 billion.

Additional funds have been budgeted in the social protection field, in particular to:

• improvement of material support for lonely retirees or state social assistance to persons who are not entitled to a pension aged over 80 or older - UAH 0.8 billion;
• financial assistance to families with children - UAH 0.6 billion; 
• subsidy for state social assistance for orphans - UAH 0.4 billion; 
• subsidy for housing and premises for the development of family and other forms of education, for orphans, children deprived of parental care - UAH 0.4 billion.

Expenditures on national security and defense will amount to unprecedented UAH 245.8 billion (5.45% of GDP). This funding will be directed in particular to:

• cash collateral and wages - UAH 141.4 billion (+ UAH 14.4 billion by 2019);
• medicines and bandaging - UAH 657.8 million (+ UAH 82.8 million by 2019);
• food products - UAH 4.84 billion (+ UAH 248.1 million by 2019);
• payment for utilities and energy - UAH 4.9 billion (+ UAH 510.7 million by 2019);
• manufacturing, procurement, modernization and repair of weapons and military (special) equipment - UAH 35.4 billion (+ UAH 7.8 billion by 2019);
• one-off payment in case of death, disability or partial disability and other social benefits - UAH 6.66 billion (+ UAH 2.44 billion by 2019);
• construction (purchase) of housing - UAH 2.23 billion (UAH +389.8 million by 2019).

Funding to the tune of UAH 73.7 billion is budgeted to allocate for repair and construction of roads.

Funds worth UAH 4.24 billion will be allocated for pursuing a land reform.

The sum worth UAH 2 billion will be redistributed through the State Regional Development Fund for subvention for socio-economic programs.