The Ministry of Finance welcomes the adoption of the draft state budget for 2017 by the Parliament in the first reading

10/20/16

On 20 October, the Parliament of Ukraine adopted the draft law on the state budget for 2017 in the first reading.
The draft budget was supported by 230 votes.

It was for the first time in many years that the state budget had been approved by the Government and submitted to the Parliament on time in accordance with all state budget regulations. Thus, the MPs and all interested parties had enough time to look into this document.

When working on the draft budget for 2017, the Ministry of Finance did its best to be as open as possible. Thus, independent experts and representatives of the civil society were engaged to check the budget calculations and revenue forecasts. As a result, the Government presented a realistic and responsible budget ensuring the effective use of public funds while covering all essential needs of the citizens.

Also, the Ministry of Finance changed its basic approach to the state budget – it is now based on revenues instead of the expenses. It means that the budget is based on real financial capacities and not on the wishes of entities spending public funds. This approach makes it possible to generate the planned revenues without putting business under pressure. Instead, steps will be taken to boost economic development.

Another feature of the state budget for 2017 refers to its clear priorities. Selected key areas enjoy special attention and full-scale funding. It should also be noted that the selection of the priority areas did not depend on the necessary volume of funding, but on the real necessity to reform and develop the respective area. It means that funding shall only be provided to the areas which have already been reformed or are in the middle of the reform process. Thus, the new approach of the Ministry of Finance will be setting incentives for reforms in a number of areas.

Other innovations in the state budget for 2017 include the implemented midterm planning which makes it possible to plan the economic development of the country. Planning for several years ahead shall help launch systemic comprehensive reforms and improve the business climate.

“We only supported the proposals of the MPs which are based on clear calculations and existing financial resources. We are grateful to the Parliamentary budget committee and to its secretariat for the fruitful cooperation and for the constructive and comprehensive dialogue”, Minister of Finance Oleksandr Danyliuk said.

The Ministry of Finance welcomes the adoption of the draft state budget for 2017 by the Parliament in the first reading and invites all MPs to a solid and open discussion in the Parliament. We are open to a dialogue and are ready to discuss the draft state budget with the MPs and the public. We expect a fruitful cooperation aimed to find common optimal solutions as well as the final adoption of the state budget for 2017 by the Parliament.

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