This was announced by Minister of Finance Natalie Jaresko at a briefing in the Government House on Tuesday, Dec. 15, Censor.NET informs referring to Cabinet press service.
According to Jaresko, the budget is based on the ministry's tax reform which was adopted at a meeting of the National Council of Reform. The document is based on the following indicators of macroeconomic forecast: real GDP growth - 2 percent, inflation - 12 percent. The expected exchange rate of hryvnia - 24,1/$1, nominal GDP - UAH 2.262 tln, average gas price - $225/1000 CM.
"The main factor behind the growth of expenditures is the need to prop up the deficit of the Pension Fund in connection with the proposed reduction of the unified social tax in average from 41 to 20 percent," Jaresko said.
The finance minister noted that "except for the Pension Fund's deficit and increase in defense spending, all other expenditures are cut by about UAH 70 bln (approx. $2.93 bln)."
The projected budget deficit accounts for UAH 84 bln (approx. $3.52 bln) or 3.7 percent of GDP. Natalie Jaresko noted that the budget provided for an increase in social standards for all citizens in May and December, by 12.5 percent in total.