On November 9, the Verkhovna Rada passed in the second reading the draft law No. 1000 on the state budget for 2024. It was initially approved on October 19, but the committee made changes to it.

For the approval of the main budget of the country, 276 members of parliament voted, said Yaroslav Zheleznyak, a deputy of the “Holos” faction.

The budget was significantly improved before the second reading, particularly increasing its revenue part, redistributing sources of deficit financing, and reducing funding for government bodies. Overall, the document defines three main priorities for the country: security and defense, the social sphere, and support for business. Key changes from the first to the second reading:

  • Budget revenues increased by UAH 22 billion, totaling UAH 1.768 trillion.
  • Expenditures remained almost unchanged at UAH 3.35 trillion.
  • The state budget deficit decreased by UAH 22 billion, now standing at UAH 1.57 trillion.
  • External borrowings reduced by UAH 103.5 billion (from $42.9 billion to $41 billion to align with the IMF), offset by an increase in domestic borrowings by UAH 81.4 billion.
  • Forecast for real GDP reduced to 4.6% (initially 5% in the first reading).
  • Inflation forecast is 9.7% (initially 10.8% in the first reading).
  • Assumptions regarding the hryvnia exchange rate averaged 40.7 UAH per dollar for the year (initially 41.4 UAH per dollar). Other changes related to specific expenditures:
  • Incorporated provisions of the draft law No. 10037 on “military income tax” into the budget text.
  • Allowed the government to reprofile bonds acquired by the NBU.
  • Included the attraction of UAH 20 billion through government bonds for “UkrFinCompany.”
  • Maintained funding for TV series production (UAH 445 million).
  • Increased expenses for the State Space Agency by +UAH 357 million.
  • Added +70% to the AMCU budget (+UAH 241 million).
  • The largest increases occurred in the Ministry of Finance (+UAH 0.68 billion), the Ministry of Social Policy (+UAH 0.58 billion), and the Ministry of Health (+UAH 0.53 billion).
  • The most significant reductions took place in the Ministry of Strategic Industries and the DSZI (each minus UAH 4.8 billion), but these funds were redirected to the “material and technical support of military units of the Armed Forces of Ukraine,” totaling +UAH 9.6 billion.
  • Additionally, funds were taken from the Ministry of Culture (- UAH 0.4 million, taken from the Holodomor Museum) and the BEB (- UAH 0.4 billion).

Photo: Yaroslav Zheleznyak