Second reading of draft budget-2024: revenue side increases by 22B

According to Ukrinform, the Ministry of Finance reported this.

On November 2, 2023, the CMU approved the draft law On the State Budget of Ukraine for 2024 for the second reading. The revenue part of the draft state budget has been increased by UAH 22.2 billion compared to the first reading and is envisaged in the amount of UAH 1,768.5 billion, including an increase of UAH 22.1 billion in the general fund.

In addition, the expected macroeconomic indicators for 2023 were revised, which are the basis for calculating the forecast for 2024. In particular, a faster recovery of real GDP in 2023 to +5% compared to +2.8% in the previous forecast, and the hryvnia exchange rate of UAH 38.6 per USD at the end of the period prior to the second reading compared to UAH 40.2 per USD in the first reading. Also, expectations for consumer price growth in the current year were revised downward from 14.7% to 7.1% (December to December).

In the forecast for 2024, the consumer inflation rate was adjusted downward from 10.8% to 9.7% (December to December last year). Assumptions about the hryvnia exchange rate of UAH 40.7 per USD (average exchange rate for the year) for the second reading have also been adjusted, compared to UAH 41.4 per USD in the previous forecast.

Expenditures and loans have been increased in the draft law for the second reading by UAH 95.2 million compared to the first reading and amount to UAH 3,355 billion, including general fund expenditures of UAH 3,120.6 billion and special fund expenditures of UAH 234.5 billion.

For the second reading, the deficit limit was reduced by UAH 22.1 billion (to UAH 1,571.5 billion), as agreed with the International Monetary Fund.

In the draft budget for the second reading, the need for external financial support is about USD 41 billion. This amount was reduced from USD 42.9 billion, in particular, due to an increase in planned revenues as a result of revised macroeconomic indicators and the inclusion of other additional revenues.

"The Ministry of Finance, together with other ministries and departments, has prepared the draft state budget for 2024 for the second reading based on the conclusions and proposals of the Verkhovna Rada. The principles and priorities defined in the draft budget submitted by the government to the Parliament in the first reading have been preserved for the second reading. The budget indicators are balanced, but also tense. We continue to work actively to attract the necessary external financing," Minister of Finance Sergii Marchenko said.

As Ukrinform reported, the CMU, in accordance with the requirements of Art. 158 of the Procedure of the Verkhovna Rada, submitted to the Parliament a draft law On the State Budget of Ukraine for 2024 prepared for the second reading in accordance with the Budget Conclusions of the Rada, approved by the Resolution of the Verkhovna Rada of Ukraine of October 19, 2023, No. 3421-IX.