Prime Minister Oleksiy Honcharuk and Economy Minister Oksana Markarova held a joint press conference on Sept. 15, presenting how Ukraine’s 2020 budget may look like, passing the budget to the parliament for a vote.
According to Markarova the budget will have an income of Hr 1,079.5 billion ($43 billion) and will feature Hr 1,170 ($46.5 billion) in expenditure.
“You will already see a reduction of the budget’s deficit in this draft,” said Honcharuk.
However, of this sum the defense sector will see an over $1 billion increase in expenditure, up to Hr 245.8 billion ($10 billion) or almost a quarter of the budget, while Hr 438.1 billion ($17.5 billion) would be spent to cover the current loans and percents owned by Ukraine.
“It’s too much,” said Markarova.
The pension fund will receive Hr 172.6 billion ($7 billion) from the state budget. The expenditure towards roads and healthcare will be increased, as well.
The minimum wage will be Hr 4723 ($190), Hr 550 or $22 higher than it is today.
Markarova also pointed out that the prediction for the average exchange rate is Hr 28.2 for $1 in 2020.
The budget was registered in parliament and will need to pass three hearings to be accepted.
However, according to Markarova, the budget was based on the calculations of the previous government, thus, doesn’t take into account the ongoing reforms, such as the potential cancelation of the land moratorium by which farmers are currently not allowed to buy land.
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Honcharuk said that the parliament will keep working on the document which will be finalized by Nov. 2.
