Page 34 - UKRRptOct22

Ukraine for 2023" will be presented by the Minister of Finance of Ukraine Sergii Marchenko.
The Government explained how they will cover the $38B 2023 budget deficit. The Cabinet of Ministers plans to cover Ukraine's state budget deficit in 2023 with support from the International Monetary Fund, the EU, and the US. According to Prime Minister Denys Shmyhal, next year, the budget deficit will reach about $38B. "We are talking about three sources of this additional budget deficit financing from our partners. We are asking the European Union for macro-financial aid of $12B. The IMF should also give us $12B for the next year, and the US will give us $1.5B monthly. In total, it's $3.5B every month, which will completely cover the budget deficit," Shmyhal said. The budget will also be financed with the help of military bonds, tax, and customs revenues.
6.1.2 Budget dynamics - specific issues...
The National Bank prints another UAH 15B. The domestic state loan bonds portfolio owned by the National Bank increased by another UAH 15B on September 6, according to NBU. As of September 5, the NBU owned government bonds with a total value of UAH 589.57B, and on September 6, their value increased to UAH 604.57B. Thus, the National Bank remains the largest owner of OVDP by amount. In June, for the first time in recent years, the regulator overtook this indicator of banks, which currently own bonds worth UAH 503.01B. In addition, OVDP worth UAH 69.07B is owned by non-residents, UAH 65.73B by legal entities, UAH 30.7B by individuals, and UAH 0.96B by territorial communities.
The President's Office is still considering new tax reform and promises to decide in two months. The President's Office, despite criticism, has not abandoned its concept of "10-10-10" tax reform. According to the deputy chairman of the President's Office, Rostislav Shurma, this discussion is ongoing, and a final version may be presented in two months. The chairman emphasizes that a strategic task of President Volodymyr Zelenskiyy is to make Ukraine attractive for investment in terms of taxes. He added that work is currently underway within various groups and that talks with businesses and various institutions within the government and talks with international partners will begin soon. As previously proposed, the 10-10-10 tax model means 10% income tax, 10% personal income tax, and 10% VAT. If the President’s office sees that everyone accepts this model, the legislative process will begin.
President Zelenskiyy announces the launch of a large information campaign to attract investment to Ukraine. Ukraine is launching a major information campaign to attract economic investment. “#AdvantageUkraine” stated President Volodymyr Zelenskiyy at the opening of the New York Stock Exchange. “We will tell the whole world why Ukraine is already a place for profitable investment and financial opportunities." He also called on American businesses to invest in Ukraine in projects worth hundreds ofbns of dollars.
Since the beginning of the war, tax revenue collection has deteriorated significantly, while public expenditure has increased sharply.
Zelenskiyy has approved excise taxes on fuel. President Volodymyr Zelenskiyy signed a Law on the resumption of excise taxes on gasoline, diesel, biofuel, and autogas. In March, the excise tax on fuel was suspended through
34 UKRAINE Country Report October 2022 www.intellinews.com