“Bluffing”: Ukraine publishes draft budget 2017

Ukraine’s draft budget 2017 suggested by the Cabinet has been published on the website of the Supreme Rada. According to the document, the budget revenues will total UAH 708.26billion, which is 17.3% or UAH 104.4billion more than in 2016.

The Cabinet envisages more than UAH 775.26billion expenditures, which will outstrip the target by 14.9% or UAH 100billion. The budget deficit will total UAH 77.5billion ($3.1 billion on the current exchange rate) or 3% of GDP, which is one of IMF requirements. In conformity with President Petro Poroshenko’s decree, the security and defense budget will account for at least 5% of GDP or UAH 129.3billion (about $5 billion), including UAH 114.8billion (nearly $4.4 billion) from the total fund of the state budget, UAH 8.4billion ($325.5 million) from the special fund of the state budget, and UAH3 billion (nearly $116 million) from the special fund for the confiscated funds.

The Cabinet suggests increasing the budget of the interior ministry by 10.8% or UAH 4billion ($160 million). The draft state budget for 2017 envisaged a 3% GDP growth. This aroused indignation of Oleg Lyashko, leader of the Radical Party of Ukraine, who thinks the target is impossible. “This budget conserves corruption. This is a budget of embezzlements. This budget keeps turning Ukraine into a raw material. Our political team offers focusing on the budget revenues, first, as revenues require a radical economic growth. The promised 3% growth of GDP for the next year is a bluff. There will be no growth,” Lyashko said. The Supreme Rada will discuss the draft budget on Wednesday, September 21.