On March 29, Minister of Finance Oleksandr Danyliuk attended the meeting of the Government to report about the execution of the state budget for 2016.
The public report on the execution of the Law of Ukraine “On the State Budget of Ukraine for 2016” with the revenues equal to 616283.2 mio. Hryvnas, expenditure amounting 684883.7 mio. Hryvnas, repayment of loans amounting 5455.0 mio. Hryvnas, provided loans equal to 7116.6 mio. Hryvnas and the deficit equal to 70262.1 mio. Hryvnas was unanimously approved by the members of the Cabinet of Ministers.
The efforts made by the Government to stabilize the financial and economic system as well as the active cooperation with international financial organizations which started in the second half of 2015 made it possible to gradually regain financial and macroeconomic stability and to resume economic growth in 2016. The real GDP grew by 2.3% in 2016 compared to the 2% taken for the calculation of the budget parameters.
According to the Minister of Finance, the key results of the state budget for 2016 are as follows:
• the budget deficit is below 3% of the GDP despite missing or reduced revenue sources;
• defense and security spending equal to 5.1% of the GDP;
• accelerated process of the renewal of the basic social standards;
• support for the Pension Fund due to the sharp reduction of the payroll tax rate;
• support for citizens due to the increased tariffs for gas and heating;
• resumption of state capital investments;
• support for the banking system and the Deposit Fund.
In general, the flexible tax and budgetary policy of the Government in 2016 made it possible to properly react to new challenges. That contributed to the restoration of financial stability, ensured funding for defense and social welfare as well as fostered important steps in the tax reform and budgetary decentralization.