By KYIV. Oct 31 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has approved the draft state budget for 2023 for second reading, Prime Minister Denys Shmyhal said.
"The government has adopted the draft budget for 2023 for second reading, taking into account the proposals of MPs. Now we expect the draft budget to be voted in the Verkhovna Rada soon," Shmyhal wrote on Telegram.
According to him, by second reading, the government adjusted the GDP growth forecast for 2023 towards a conservative scenario (3.2% instead of 4.6%), and the inflation forecast was reduced from 30% to 28%.
"The 2023 budget is drafted taking into account UAH 1.3 trillion in revenues. Thanks to the adjusted macro indicators and tax changes, we propose to increase the revenue side by more than UAH 50 billion," the prime minister wrote.
He noted that the costs will amount to UAH 2.6 trillion.
"We have increased the volume of expenditures for payment of pensions, elimination of the consequences of Russia’s armed aggression (construction, repairs, buying housing for people), for scientific and technical activities, preferential mortgage loans for IDPs. In total, by second reading the expenditure in the draft state budget increased by UAH 66.8 billion," Shmyhal added.
The prime minister stressed that security and defense remain the top priority.
"We are directing more than UAH 1 trillion to fight the invaders, which is more than 18% of GDP. We finance the Ukrainian army at the expense of internal resources," he said.
In addition, Shmyhal said that the state budget deficit next year will be more than 20% of GDP.
"We will cover it with the help of our partners. We need to attract $38 billion. We will receive it from the EU, the US, the IMF and other donors. We are moving in this direction and there is every reason to count on progress," he summed up.
