​The Ministry of Finance appeals to the Parliament to support the draft state budget for 2018

12/7/17

The Ministry of Finance urges the Parliament to adopt the draft law on the state budget of Ukraine for 2018 (No. 7000) which will be presented to the Parliament today for the second-reading vote and the overall approval.

This year, the Ministry of Finance has prepared the state budget on the basis of the mid-term budget resolution.

Thus, the Ministry of Finance is laying grounds for the future economic development of the country and paving the way for systemic comprehensive reforms.

Also, the Ministry of Finance is planning to enhance the budget discipline to reduce the budget deficit to 2.46% in 2018.

The draft state budget for 2018 was corrected taking into account the budget conclusion of the Parliament and was approved by the Government on December 1, 2017.

“We processed all corrections and proposals of the members of Parliament and did our best to take into account most of them based on the spending priorities and the revenue capacities of the state budget. Our priority in the budget preparation was to elaborate a well-balanced budget, and we did it”, Minister of Finance Oleksandr Danyliuk said.

Next year, the consolidated budget revenues are set to grow by 19% thus hitting a one-trillion-hryvnas mark. This upsurge in the budget revenues will be reached without any tax rise (except for the annual standard correction) – it will be generated by economic growth alone.

When preparing the state budget for 2018 for the second reading, the Government kept the budget priorities presented for the 1st reading, including:

• Acceleration of the economic growth by fostering a favorable investment climate, keeping the macroeconomic stability and continuing the fiscal consolidation;
• Security and defense, protection of the country’s sovereignty and territorial integrity;
• Healthcare and education reforms, improvement of the social welfare system, pension reform;
• Support for agriculture and farming;
• Development of the road infrastructure;
• Fight against corruption etc.

The draft state budget for 2018 is well-balanced and realistic, its additional expenses are planned to be covered with increased revenues. The key advantage of this budget is that it ensures the effective use of the taxpayers’ money for systemic reforms in the country.

Hence, the Ministry of Finance asks the Parliament to vote for the state budget for 2018 which determines the way the country will live next year.

The timely adopted state budget is the pillar of stability and development in the country.

Additional information about the state budget for 2018:

• Real GDP growth - 3%
• The minimum wage shall be increased starting from January 1, 2018, to UAH 3,723 (+UAH 523, which is +16.3%)
• Minimum living wage: from January 1, 2018 – UAH 1,700; from July 1 – UAH 1,777; from December 1 – UAH 1,853
• Minimum pension: starting from January 1, 2018 - UAH 1,452 with the minimum living wage for unemployable citizens at UAH 1,373; from December 1 – UAH 1,497
• The above increase in the GDP, wages and pensions shall come along with the budget deficit reduced to 2.46% of the GDP compared to 2.7% of the GDP in 2017.

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