Page 48 - UKRRptOct23

6.0 Public Sector 6.1 Budget
6.1.1 Budget dynamics - results
The Cabinet of Ministers of Ukraine has approved the draft law for the country's 2024 state budget with UAH1.685 trillion ($45.6bn) dedicated to defence and funding the war with Russia.
Prime Minister Denys Shmyhal announced the budget details on September 15, outlining a significant emphasis on defence and security. The draft allocates over half of the total budget resources, amounting to UAH 1.685 trillion, an increase of UAH 113bn compared to the current year.
Funding for developing Ukraine's military-industrial complex is expected to increase sevenfold to almost UAH 56bn, with another UAH 48bn allocated to purchase drones.
In the social sphere, the budget prioritises expenditures, with UAH 469bn earmarked, reflecting a UAH 25bn increase from the previous year.
The education sector is set to receive UAH 179bn, a UAH 23bn boost from 2023. Meanwhile, the healthcare sector will see an increase of UAH 24bn, with a total allocation of UAH 202bn in 2024.
The budget's fourth priority focuses on supporting veterans, with expenses for this program doubling from UAH 6.8bn in 2023 to UAH 14.3bn in 2024.
The state budget of Ukraine for 2024 provides about UAH 30 billion for various business support programs, of which UAH 30 billion to the Entrepreneurship Development Fund for the continuation of the programs Affordable Loans 5-7-9% and Affordable Financial Leasing 5-7-9%.
Lastly, the fifth priority is cantered on economic recovery. The government aims to achieve this without imposing new taxes. It will continue to implement preferential lending programs, offer non-repayable grants, support Ukrainian startups, and introduce new initiatives for industrial parks and investment projects.
Ukraine hopes to receive $42bn from its partners next year. In particular, $18bn from the EU and $1.1-1.2bn monthly from the US. In addition, the Ukrainian government expects financial aid from IMF programs and other individual countries such as Norway and Japan. However, the projected volume of public debt will amount to 104.6% of GDP.
At a meeting on September 21, the Verkhovna Rada adopted at the first reading bill No. 10038 on increasing state budget expenditures for 2023 by UAH 328.5bn, of which UAH 302.6bn is for security and defence needs. "The Rada adopted it only at the first reading... By the second reading we will remove expenses for the BES (68% more) and insist on additional expenses for the Ministry of Defence," MP Yaroslav Zhelezniak wrote on his Telegram
48 UKRAINE Country Report October 2023 www.intellinews.com