The Verkhovna Rada of Ukraine heard the report of the Minister of Finance concerning the implementation of the Ukraine's 2014 state budget and the basic directions of the 2016 budgetary policy

6/17/15

At the plenary session on June 16th, the Verkhovna Rada of Ukraine heard the report of the Minister of Finance, Natalie Jaresko, on the implementation of the state budget for 2014 and the basic directions of budgetary policy for 2016.

In her report, the Minister noted that, in 2014, the Government provided the funding and implementation for state-guaranteed social securities and liabilities, provided increased funding for defence and security, and implemented all internal and external public debt obligations.

"Despite the difficult economic and political situation in the country, and the armed conflict in the east, in 2014 the Government had taken decisive steps to balance the budget, as well as its reorientation on the country’s needs for defence, while conducting reforms in the tax and budgetary spheres. This allowed the state to enforce its functions, and created a stable functioning of budget sphere,"– said NatalieJaresko.

After the speech of the Minister, Verkhovna Rada of Ukraine took note of a report on the implementation of the law regarding state budget for 2014.

By presenting the basic direction of budgetary policy for 2016, Natalie Jaresko noted that this document is based on the Programme of the Cabinet of Ministers and strategic documents – TheCoalition Agreement, and the Strategy for Sustainable Development "Ukraine-2020". In addition, the document is based on the provisions of the cooperation programs with the IMF and other international financial institutions.

During the session of the Parliament, Minister of Finance of Ukraine said that the key approaches to the budget policy for 2016 included an increase in budget revenues, "through broadening the tax base, combating optimization and tax evasion, contraband at the country’s border, and the introduction of a new tax payment culture among citizens and businesses."

The Minister has also assured that, in 2016, the government has planned to reduce expenditures on the maintenance of government apparatus, introduce a new tax system, increase funding for the country’s defence and security, continue optimization in the fields of education and medicine, as well as strengthen fiscal decentralization.

"In the budget resolution for the year of 2016, it is defined that the GDP’s nominal income will be 2.106 trillion, real GDP growth – 2%, consumer price index from December to December – 9%, the producer price index – 12%. The projected average exchange rate against the US dollar in 2016 - at 22.5 UAH/$ ", said Natalia Jaresko.

After discussing the Budget Resolution, members of the Parliament sent a draft decree № 2623 "About the main directions of budgetary policy for 2016" to the special committees of the parliament for further revision.

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