On December 7, the Parliament of Ukraine adopted state budget for 2018 by 273 votes.
It is the second consecutive year that the draft state budget is approved on time by the Government and submitted to the Parliament. It means that we are back to the practice of state budget adoption within the timeline set by law instead of delivering it “on Christmas Eve”.When preparing the draft state budget for 2018, the Ministry of Finance implemented a new model of budget policy - a 3-year budget resolution was introduced and amendments were made to the Budget Code to enable mid-term budget planning. The budget for 2018 is based on this mid-term budget resolution and takes into account updated macro-economic figures.
Last year the Ministry of Finance completely changed its budgeting approach, which means that the budget for 2018 was developed on the basis of revenues and real capacities of the economy instead of spending demands of different stakeholders. The pillars of the new budget are the principles of transparency, effectiveness and strategic thinking. Thus, it became possible to produce a high-quality financial document ensuring effective use of budget funds and financing all key reforms in the country.
The revenues of the consolidated state budget in 2018 have grown by 19% compared to 2017 and will for the first time exceed 1 trillion hryvnas. Economic growth is the only basis for the increase in budget revenues. No taxes (besides the regular indexation stipulated by the existing law) will be increased.
During the preparation of the draft Law “On the State Budget for 2018” for the final reading, the Government kept the priorities which had been presented for the first reading, they include security and defence, healthcare, education, social welfare, agriculture, road construction, decentralization and others.
While presenting the draft budget for 2018 in the Parliament, Minister of Finance Oleksandr Danyliuk pointed out: “In our budget we ensure funding for all key reforms aimed to benefit citizens and the economy of the country. The budget for 2018 is an investment into the future generations. It provides increased funding for the priority sectors and ensures economic growth”.
The budget for 2018 also aims to secure macroeconomic stability and fiscal consolidation.
“I am grateful to the Finance Ministry’s team for their professional work, I am grateful to the members of Parliament for their open-mindedness and productive dialogue, I am grateful to the Prime Minister and all Government members for their cooperation and their support of our draft budget. Also, I am grateful to experts for their objective critical remarks and for their proposals to improve our draft”, Minister of Finance Oleksandr Danyliuk said.