Ukrainian parliament adopts draft budget for 2019 at first reading

The Verkhovna Rada has adopted at first reading the bill on Ukraine's state budget for 2019.

A total of 240 MPs voted for the approval of a respective bill, No. 9000, at a plenary meeting of parliament on Thursday, according to an Ukrinform correspondent.

According to the document, the revenues of the consolidated budget in 2019, taking into account current budget execution, changes in the tax and budget legislation, are projected at UAH 1.293 trillion. The revenues of the general fund of the consolidated budget for 2019 are projected at UAH 1.175 trillion. The projected revenues of the consolidated budget for 2019 grow by UAH 130.5 billion, or 11.2%, compared to 2018, including the revenues of the general fund by UAH 110.3 billion, or 10.4%, and the revenues of the special fund by UAH 20.2 billion, or 20.7%.

The general fund of the state budget in 2019 is to be financed at the expense of state internal and external borrowing.

Government borrowing for 2019 is projected at UAH 324.764 billion, which is UAH 109.803 billion more than planned for 2018, including external borrowing - UAH 122.745 billion, or UAH 31.542 billion more than planned for 2018, and internal borrowing - UAH 202.019 billion, or UAH 78.261 billion more than planned for 2018. Thus, external borrowing in 2019 will amount to 37.8% of total receipts and internal borrowing to 62.2%.

UAH 145.205 billion is to be paid to service public debt in 2019, which is UAH 15.005 billion more than projected for 2018.

The servicing of domestic state debt is expected to reach UAH 88.98 billion in 2019. The servicing of foreign state debt for 2019 is projected at UAH 56.44 billion. Total state debt payments to be made in 2019 at the expense of the state budget are estimated at UAH 417.452 billion, of which 57.3%, or UAH 239.245 billion, is domestic debt payments and 42.7%, or UAH 178.207 billion, is foreign debt payments.

According to calculations, the total amount of public debt, calculated in national currency, will be UAH 2.06 trillion, or 52.2% of GDP. Publicly guaranteed debt, calculated in national currency, will amount to UAH 388.63 billion. Public and publicly guaranteed debt will make up 62% of GDP.

According to the bill, the living wage per person per month is set at UAH 1,853 from January 1, 2019, UAH 1,936 from July 1, and UAH 2,027 from December 1.

The resolution instructs the government to prepare the draft law on Ukraine's state budget for 2019 for second reading in accordance with the budget conclusions of the Verkhovna Rada of Ukraine and submit it for consideration by the Verkhovna Rada within a two-week period from the date of entry into force of this resolution.

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