The Cabinet of Ministers approved the draft budget for 2023 for the second reading, taking into account the proposals of peopleʼs deputies.
This was announced by Prime Minister Denys Shmyhal.
The government changed the GDP growth forecast for 2023 to a more pessimistic one (3.2% instead of 4.6%). The inflation forecast was reduced from 30% to 28%.
Budget 2023 is planned taking into account revenues of 1.3 trillion hryvnias. Thanks to adjusted macro indicators and tax changes, the Cabinet of Ministers proposes to increase the revenue part by more than 50 billion hryvnias.
Expenses will amount to 2.6 trillion hryvnias. "We have increased the amount of expenditures on pension payments, on liquidation of the consequences of Russiaʼs armed aggression (construction, repairs, buying housing for people), on scientific and scientific and technical activities, on preferential mortgage loans for IDPs. In general, by the second reading of the draft state budget, the expenditure part increased by 66.8 billion hryvnias," Shmyhal said.
More than 18% of the GDP will be allocated to military needs — more than one trillion hryvnias. The deficit of the state budget next year will be more than 20% of the GDP. It is planned to cover it with the help of partners.
"We need to attract $38 billion. We will receive them from the EU, the USA, the IMF, and other donors. We are moving in this direction and have every reason to count on progress," Shmyhal said.
- On September 13, the Government approved the draft State Budget for 2023. Initially, budget revenues will amount to 1.28 trillion hryvnias, and expenditures will amount to 2.57 trillion hryvnias. The budget deficit is expected at the level of 1.29 trillion hryvnias for the year. The draft budget envisages economic growth of 4.6% in real terms and inflation of +30%. The minimum wage and living wage will not change and will amount to 6,700 and 2,589 hryvnias, respectively.