• Українською
  • Statement by Prime Minister Denys Shmyhal at Government session
    Communications Department of the Secretariat of the CMU, posted 14 July 2023 17:05

    Good afternoon, dear colleagues, fellow Ukrainians.

    Last year we said that the winner of this war would be the one who took better care of its own army, built a stronger coalition and had a more resilient and adaptable economy.

    At the NATO Summit in Vilnius, we all saw once again the strength and absolute support of the pro-Ukrainian coalition.

    President of Ukraine Volodymyr Zelenskyy held talks with our key partners. Ukraine is becoming stronger, and we will receive more weapons to defend ourselves.

    Together with our partners, we are shaping a new security architecture and guarantees for the future of Ukraine. There is no doubt about it: Ukraine will be in NATO. This is a position supported by all Allies.

    In Vilnius, the leaders of the G7 countries, with the participation of President Volodymyr Zelenskyy, agreed on a Joint Declaration of Support for Ukraine. This declaration is the foundation and the first step towards making Ukraine secure and strong.

    Another success of the Vilnius summit is new substantial military assistance packages from various allies. More equipment for our security and defence forces. More air defence systems to protect our skies. More shells for our counter-offensive.

    ***

    A sustainable economy and public finances also remain an essential element in winning the war.

    In the first six months of 2023, we have managed to finance all key budget expenditures. All taxes from citizens and businesses were directed to ensure the defence and security of our country.

    In total, in January-June 2023, the general fund of the state budget received almost UAH 870 billion. Of this, UAH 600 billion are tax revenues, and UAH 270 billion are grants from our international partners.

    In total, in the first six months, various funds of the state budget received UAH 1 trillion 302 billion in taxes, fees and other payments. I would like to thank our businesses, our entrepreneurs who continue to work, develop their own business, employ people, invest, pay taxes, and support communities. You are the foundation of our economic stability. The Government will continue support programmes and introduce new instruments to help entrepreneurs.

    ***

    While revenues amounted to UAH 1.3 trillion, state budget expenditures over the same six-month period totalled UAH 1 trillion 784 billion.

    As I have already said, the absolute priority in the budget is security and defence. We are currently spending about half of all the funds available in the budget on this.

    The second largest expenditure is on social support programmes. In the first six months of this year, UAH 231 billion was allocated from the state budget for social payments. Of this, UAH 136 billion was spent on pensions and support for the Pension Fund. We have paid out UAH 23.1 billion in subsidies. As we promised, we are fulfilling all our social obligations.

    In addition to the army, security and social payments, the main areas of spending in the first half of the year were healthcare, education and support for the regions.

    In the first quarter of this year we managed to ensure the average salary of doctors at the level of almost UAH 22,000. Over the past six months, more than UAH 56 billion has been spent on educational subsidies for the regions alone. Of this amount, UAH 900 million has already been allocated for equipping schools with bomb shelters and another UAH 600 million for the purchase of new school buses.

    The total amount of subventions to the regions during this period has reached UAH 92 billion. At the same time, we see a significant increase in local budget revenues. In the first half of 2023, the general fund of local budgets received almost UAH 218 billion. This is UAH 42.5 billion more than last year.

    The balances on the accounts of local budgets and budgetary institutions have already reached UAH 170 billion. This means that there are enough funds on the ground, in particular to support local utilities and not to raise tariffs.

    Overall, we have a clear vision and understanding of how we will proceed this year in terms of financing the budget deficit. This enables us to ensure the macroeconomic and macrofinancial stability of our country.

    We have also started preparing for the next year. We are actively working with our partners. First of all, with the EU, G7 countries and international financial organisations.

    The European Union is launching a four-year EUR 50 billion programme to help finance the budget deficit, among other things. This Ukraine Facility programme will also help us to implement the programme of European reforms and changes.

    In order to ensure the effective implementation of the programme, we are setting up an Interagency Working Group to prepare an action plan. This is important for our transformation and rapid readiness to join the European Union.

    Ukraine is winning and Ukraine is changing. We are working for sustainability, recovery and our victory.

    Thank you for your attention. Glory to Ukraine!

    Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session Statement by Prime Minister Denys Shmyhal at Government session