Page 39 - UKRRptDec19

The plan for financing the national budget in 2020 announced by the government in the draft budget envisages borrowing on the foreign market in the amount of $4.9bn and on the internal market in the amount of UAH231.1bn (around $8.4bn), according to state representative for public debt Yuriy Butsa.
The international borrowing is slightly up from the $4.2bn of international borrowing planned for this year, whereas the borrowing on the domestic market is significantly more and possible after the local capital market was hooked up to the Clearstream international settlement system this year.
"We will continue increasing the share of borrowings in national currency," news agency Interfax quoted him as saying on November 14 during a financial conference in Kyiv.
According to Butsa, the amount of payments on public debt next year is estimated at UAH282.1bn($10.3bn) of repayment of the principal amount and UAH141.5bn ($5.1bn) of interest payments. Butsa added that another UAH12bn is planned to be raised through privatisation.
The official said that since the beginning of this year, the total public debt of Ukraine has declined from 60.9% of GDP to 51.2% of GDP in September this year, although in U.S. dollar terms it has grown from $78.3bn to $83bn.
He also said that the share of debt in the hryvnia during this time increased from 33% to 40%, and in U.S. dollars decreased from 48% to 42%. According to him, the debt in euros increased from 9% to 11%. Butsa added that a small share of the euro in debt allows us to consider the possibility of increasing it.
Ukraine’s Prime Minister Oleksiy Honcharuk announced revised parameters of the 2020 state budget at a press briefing on November 5​.
The revisions will be submitted for a vote after the budget's first reading was approved by parliament on October 18. State budget revenue is planned at UAH1,094bn (6.6% higher from the 2019 budget), while outlays are pegged at UAH1.180bn (+6.1% from the 2019 budget).
The monthly minimum wage is set to rise to UAH4,723 from UAH4,173 in 2019. The 2020 budget also assumes a significant increase in outlays for pensions (+40%), infrastructure (+37%), defence and security (+16%), and public health and education (+13%).
In related news, Finance Minister Oksana Markarova noted that budget revenue was revised higher by UAH13bn and spending was raised by UAH15bn from the first reading. This revenue hike is expected to be supported by an expected UAH3bn gain from licensing casinos and gambling, as well as boosted dividends of state-owned companies, enterprise profit tax collections, and rent from state property.
The major budget parameters look quite realistic. They are based on the cabinet's base-line macroeconomic forecast, which assumes GDP growth of 3.7% y/y and consumer inflation 5.5% YTD in 2020.
6.1.1 ​Budget dynamics - results
Budget Execution Jan-Sept 2019 (UAH)
income full year plan
1,048,167,965,562.9
income YTD
739,750,976,731.6
% income of the plan fulfilment YTD
70.6
39​ UKRAINE Country Report​ December 201 ​ ​www.intellinews.com