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  • Due to reforms Ukraine will be able to reach 5% economic upturn annually already in 2023, says Denys Shmyhal
    Communications Department of the Secretariat of the CMU, posted 02 June 2021 16:02

    Ukraine will join more than 100 countries around the world that implement medium-term budget planning. This was stated by Prime Minister Denys Shmyhal during a meeting of the Cabinet of Ministers on June 2.

    The Head of Government recalled that two extremely important documents had recently been approved: the Forecast of Economic and Social Development of Ukraine for 2022-2024 and the Budget Declaration for 2022-2024.

    "In the Budget Declaration, we enshrined the goals of public policy in all areas and the amount of taxpayers' money that will be used to achieve them. Thus, people will see in the perspective of three years, how their money will be used," Denys Shmyhal noted.

    The Prime Minister stressed that according to the approved documents, the budget deficit should return to the planned 3% by 2023, and public debt is planned to be reduced to less than 50% of GDP.

    "This means that we will spend less on debt service and more on medicine, defense and education. It is also planned to reduce the share of GDP that the state redistributes through its expenditures. People and businesses will have more money left, and they will be able to decide how to spend it," the Head of Government said.

    Also, according to the documents, the growth of salaries in the next 3 years will make up 8-10% per year, taking into account inflation. In turn, inflation, according to the Prime Minister, should return to the target of 5% in 2023, and in 2022 will be 6.2%.

    "Due the reforms carried out in 2023, we will be able to reach a steady trend of economic growth of virtually 5% annually. This will allow to increase pensions, salaries, spending on medicine, defense, education, road construction and business support. In general, budget expenditures in the next 3 years will also increase up to UAH 300 billion," the Head of Government underscored.

    Due to reforms Ukraine will be able to reach 5% economic upturn annually already in 2023, says Denys Shmyhal