Page 39 - UKRRptDec22

Finalizing the draft State Budget for the second reading, the deficit was increased by UAH 17bn (up to 20.6% of GDP).
The deficit is planned to be financed by increasing external borrowings. Accordingly, the volume of state debt will increase by this amount.
As a result, the forecast volume of the state debt equivalent in national currency is predicted to be UAH 6,423bn in absolute terms.
Expenses
State Budget expenditures for the second reading were increased by UAH 67bn compared to the first reading. They will amount to UAH 2,640bn, including the general fund of UAH 2,312bn and the special fund of UAH 328bn.
The expenses on national security and defence has not changed compared to the first reading and makes up about 50% of the entire state budget budget expenses. This is UAH 1,141bn or 18.2% of GDP (the general fund is UAH 1,006bn, special fund - UAH 115bn, state guarantees - up to UAH 20bn).
In order to solve social and economic issues, an increase in State Budget expenditures is foreseen, in particular for: o payment of pensions - by UAH 39bn (up to UAH 272bn); o Fund for Liquidation of the Consequences of Armed Aggression - for UAH 16bn (up to UAH 35.5bn). The areas of directing the funds are the following: - construction and repairing of residential buildings, critical infrastructure; - provision of housing for internally displaced persons and persons who lost their housing as a result of hostilities; - purchase of school buses and special transport for healthcare institutions and communal enterprises; o expenditures on education was increased by UAH 555mn, in particular, UAH 150mn for the development of distance education, UAH 215mn for ensuring the conduct of external independent evaluation; o expenditures on culture in the amout of UAH 235mn, including implementation of projects by the Ukrainian Cultural Fund and the Ukrainian Book Institute; o provision of concessional mortgage loans to internally displaced persons - UAH 20mn.
In addition, expenditures were redistributed between administrators of budget funds and under separate budget programs in order to optimize them and take into account the proposals of the Members of Parliament. In particular, it is foreseen a new budget program "State Fund for Regional Development" in the amount of UAH 2bn.
6.1.2 Budget dynamics - specific issues...
Significant tax changes are not planned next year, head of the parliamentary committee on finance, taxation and customs policy Danylo Hetmantsev said on November 15. The absence of a draft law on tax changes in the package with the 2023 state budget was a joint position of the relevant parliamentary committee and the government. "There are no significant changes in the tax base in wartime, and we are planning the entire financial year 2023 as wartime," he said in an interview with Interfax-Ukraine. Hetmantsev added that he was pleased with the end of "absolutely insane discussions" about the need to abolish single social security tax.
Ukrainian enterprises of Rinat Akhmetov's SCM Investment Group for the
39 UKRAINE Country Report December 2022 www.intellinews.com