The Government has approved a draft law amending the State Budget for 2020. It is designed to address the effects of the spread of COVID-19 coronavirus infection and support economic activity in the country.
In addition, when updating the indicators the impact of the macroeconomic situation on changes in the external and internal environment is taken into account. In particular, reduction of trade, consumer activity of the population, output contraction and cutting investment.
On the whole, the bill is balanced.
The document stipulates that the revenues of the State Budget of Ukraine will amount to UAH 972 billion, in particular, the revenues of the General Fund - UAH 853 billion and the revenues of the Special Fund of the State Budget of Ukraine - in the amount of UAH 119 billion.
Expenditures were approved to the tune of UAH 1.263 trillion: General Fund expenditures - UAH 1.133 trillion and Special Fund expenditures - UAH 130 billion.
The limit on a budget deficit makes up UAH 298 billion: the General Fund deficit amounts to UAH 274 billion while the Special Fund - UAH 23 billion.
Apart from that the document also contains that as of December 31, 2020, the maximum amount of public debt makes up UAH 2.386 trillion.
“It is clear that we are not satisfied with all the figures, but in the second half of the year we hope to improve the economic situation. The Government is making every effort to achieve this goal,” said Prime Minister of Ukraine Denys Shmyhal.
The bill envisages the establishment of a Fund within the State Budget for the fight against acute respiratory illness COVID-19 and its consequences in the amount of UAH 97.1 billion.
It is planned that the Fund's resource will be spent, where appropriate, in particular on: financial support for the healthcare sector (namely, additional payments to health care workers, purchase of medical equipment, express-tests, PCR tests, ALV (artificial lung ventilation) machines, personal protective equipment and social protection of the citizens of Ukraine.
Besides, the bill approved by the Government stipulates for a UAH 3.0 billion increase in funding of the Reserve Fund for contingency.
It should be emphasized that the changes to the State Budget provide for additional expenses, in particular for the following issues:
financial support for the payment of pensions, allowances and increases to pensions allocated under different pension programs, and a deficit of the Pension Fund in the amount of UAH 19.7 billion;
servicing public debt - UAH 3.3 billion;
restructuring of the coal industry (wages for miners) - UAH 1.6 billion and so on.
Support for agricultural producers will not be reduced and will reach UAH 4 billion this year. The Government is also continuing to fund the reform of the defense-industrial complex. Costs for the latest technologies and capacity building for defense-related products have been preserved at the level of UAH 2.5 billion.
Financing of road construction and repair in Ukraine will prolong as well. Thus, the sum worth UAH 37.3 billion is envisaged for the development of the road infrastructure, and UAH 21.8 billion is planned for subsidies to local budgets for the road sector.
“At the time of the pandemic and the fight against the coronavirus, the Cabinet of Ministers clearly sets priorities. We will support people and businesses. At the same time, top officials should understand the situation and tighten their belts,” Denys Shmyhal emphasized.
In particular, it is proposed that by the end of 2020, officials should not receive a salary exceeding 10 minimum salaries. The exception is workers involved in COVID-19 fight and national security and defense activities.