By (Updated and expanded, comments from the Ministry of Finance were added after the 6th paragraph)
KYIV. Sept 15 (Interfax-Ukraine) – The Cabinet of Ministers approved the bill “On the State Budget of Ukraine for 2024” with general fund receipts of UAH 1.56 trillion and its expenses of UAH 3.108 trillion, Prime Minister Denys Shmyhal said on Friday.
“The key emphasis of this project is the defense and security of our country. We are directing more than half of all budget resources – UAH 1.685 trillion. This amount is UAH 113 billion more than this year. There will be even more weapons and equipment. More drones, ammunition, missiles. Just like this year, every penny of taxes from citizens and businesses will go to support our security and defense forces,” Shmyhal wrote on the Telegram channel.
According to the prime minister, the second priority is the social sphere, budget expenditures for which will be UAH 469 billion, which is UAH 25 billion more than this year.
“The third priority is medicine and education. We allocate UAH 179 billion for the education sector, and this is UAH 23 billion more than this year. For medicine – UAH 202 billion, which is UAH 24 billion more than the expenses of 2023,” he said.
According to Shmyhal, the fourth priority is to support veterans: expenses under this program will double – from UAH 6.8 billion in 2023 to UAH 14.3 billion in 2024.
“The fifth priority is the restoration of our economy. No tax increases are expected. The government continues preferential lending programs, a program of non-repayable grants – work, support for Ukrainian startups. We are also launching new programs for industrial parks, the implementation of investment projects, to support Ukrainian manufacturers,” he said.
As the Ministry of Finance said in a press release, the draft state budget 2024 provides for UAH 1.693 trillion for the defense and security sector, which amounts to 21.6% of GDP. This volume provides for UAH 1.543 trillion of the general fund and UAH 119.8 billion of the special fund, including by crediting the latter with UAH 96.3 billion of military personal income tax and UAH 30 billion of state guarantees.
It is envisaged, in particular, to increase funding for the development of the military-industrial complex (DIC) sevenfold, to UAH 55.8 billion and allocate UAH 48.1 billion for the purchase of drones.
Some UAH 468.8 billion is allocated for social protection, including support for socially vulnerable segments of the population, which is UAH 24.7 billion, or 5.6%, more than this year. For the first time, social support for military personnel was taken into account – UAH 1 billion and raising orphans in families – UAH 0.5 billion.
Funding for support of war veterans has been increased by UAH 7.5 billion compared to the current year, to UAH 14.3 billion. This includes reformatting approaches to veterans’ policy: the budget for the first time takes into account the Institute of Veteran’s Assistant – UAH 3.8 billion and a pilot project on dental prosthetics – UAH 749 million.
As the Ministry of Finance indicated, UAH 178.8 billion are provided for education, which is UAH 22.9 billion more than in 2023. This sum provides for an increase in teachers’ salaries by 18%, as well as an improvement in the quality of educational services.
“The budget for the first time takes into account the modernization of school canteens to ensure healthy nutrition for children – UAH 1.5 billion, the purchase of the latest educational equipment for vocational education institutions – UAH 0.5 billion, the modernization of research infrastructure for the scientific activities of young scientists – UAH 232 million,” the Ministry of Finance said.
According to it, UAH 201.9 billion are allocated for the healthcare sector, taking into account transfers, which is UAH 24.4 billion more than the amount for 2023. Among other things, expenses under the Medical Guarantee Program have been increased and expenses have been provided for the centralized purchase of drugs and medical products. The budget also takes into account for the first time the development of a system of high-precision cancer diagnostics (PET studies) – UAH 1.6 billion.
Some UAH 2.5 billion was allocated to enhance the digital transformation of priority industries and areas of public life, which is UAH 2.1 billion more than this year.
The budget for the first time takes into account innovative projects to support the security and defense sector – UAH 1.5 billion and an application to the Mriia educational platform – UAH 142 million.
As the Ministry of Finance said, UAH 10.7 billion (UAH 2.3 billion more by 2023) and UAH 7.5 billion (UAH 3.6 billion more) were allocated for culture and sports, respectively. The ministry added that for the first time these expenses included certificates for books for children – UAH 376 million.
The state budget allocates UAH 8.3 billion for the Ministry of Foreign Affairs, which is UAH 2.2 billion more than this year. In particular, the ministry’s expenses have been increased to strengthen the institutional capabilities of Ukraine’s foreign diplomatic institutions in the context of the Russian Federation’s war against the country.
The amount of business support under various programs is determined at UAH 30.8 billion.
The Ministry of Finance also said that it is planned to increase the minimum wage to UAH 7,100 from January 1 and to UAH 8,000 from July 1, 2024 (19.4% more), the official salary of an employee of the first tariff category of the unified tariff scale to UAH 3,195 from January 1 and to 3,600 UAH from July 1 (24.4% more).
In addition, from January 1, it is planned to increase the level of living wage per person per month to UAH 2,920 (12.8% more).
“The forecast for financing the state budget for 2024 assumes a reduction in the state budget deficit to 20.4% of GDP (in 2023 it was 27% of GDP). Repayment of public debt is planned in the amount of UAH 606.5 billion, including UAH 421.6 billion for internal and UAH 184.9 billion for external,” the ministry said.
