On April 13, Verkhovna Rada adopted the sequestered National Budget 2020 with 249 votes in favor of the draft law No. 3279-d.
While planning new budget indicators, the Cabinet of Ministers took into account 4.8% GDP drop (the nominal GDP is expected at UAH 3.99 trillion), unemployment growth up to 9.4% and medial income at the level of UAH 10,700. Inflation is expected to increase more than twice – up to 11.6%. At that Additionally, the updated budget is based on the average annual dollar rate at UAH 29.5/USD1 (the previous version of the budget was based on the expected exchange rate of UAH 27 / USD1).
The adopted document has trebled the budget deficit – now at UAH 298.4 billion. It accounts for nearly 11% of all revenues:
The parliament has increased the national debt by half, to UAH 642.7 billion for 2020. The government plans to rely on domestic loans, which it plans to increase by UAH 146.5 billion (to UAH 377.6 billion). external debts are expected to increase marginally – by UAH 131 billion (up to UAH 265.1 billion).
The budget expects to establish the Fund for Fighting COVID-19 at the total of UAH 64.67 billion.
At the same time, the draft law No. 3279-d implies for 15.7% reduction of tax revenues to UAH 781.1 billion, while the planned volume of non-tax proceeds is expected to increase by 17% (to UAH 183.3 billion) through dividends of state-owned enterprises, companies, in which the state owns a share, and revenues from ownership and entrepreneurial activity.
“To vote or not to vote for the budget was a crime either way. Refusing to vote for it, we were leaving Ukraine without the Fund for Fighting the Pandemic, while voting in its favor meant acknowledging that under the guise disguise of coronavirus, quite a lot of wheel and deal been involved in this budget. Including the interest in favor of Dovira (Trust) Parliamentary Group, which our party currently provides with financial and administrative services in exchange for their votes. That is why the adoption of the budget may be considered the result of the coalition between the Dovira and the "Servant of the People" party. I would call that "the Trust of the People”, stated Aleksandr Dubinsky, MP, commenting on the new budget.
Andrey Pshenichniy for dubinsky.pro