Submitted amendments triple Ukraine 2020 budget deficit

Ukraine’s 2020 state budget revenues are to be reduced
by UAH 119.7 bln, or 11%, to UAH 975.8 bln, according to the bill on state
budget amendments published on the Verkhovna Rada website on Apr. 11.
Meanwhile, budget expenditures are to increase by UAH 82.4 bln, or 7%. As a
result, the budget deficit ceiling will increase more than three times to UAH
296.7 bln. Privatization receipts are expected at UAH 0.5 bln (vs. UAH 12 bln
previously).

The amendments include the creation of a state fund on
fighting Covid-19 of UAH 64 bln. In addition, expenditures on public health
will increase by UAH 15.8 bln. Pension fund expenditures will rise by UAH 29.7
bln. At the same time, the expenditures on housing subsidies are cut by UAH 8.2
bln. The new bill also assumes lower expenditures on regional development (by
UAH 2.6 bln), sports (by UAH 2.3 bln), and local communities support (by UAH 2.1
bln).

Evgeniya Akhtyrko: We believe there is a solid chance that these amendments will be
adopted by the Verkhovna Rada this week. It looks like the parliament’s
factions reached a compromise on this document, and the bill will collect the
necessary votes. Recall, adopting budget amendments, alongside the so-called
anti-Kolomoisky bill and the bill creating the farmland market, are all necessary for securing IMF and other
international funding that is critically needed amid the coronavirus crisis.