The Parliamentary Budget Committee recommends that the Verkhovna Rada adopt the draft law on the State Budget of Ukraine for 2023 in the second reading and in general, the press service of the Apparatus of the Verkhovna Rada reported.
The committee considered the draft Budget-2023, prepared by the Cabinet for the second reading, at its meeting on November 2.
As reported, the general indicators of the draft state budget for 2023 in the bill revised by the government for the second reading have been changed compared to the first reading as follows:
revenues increased by UAH 50.1 billion (by 3.9%), including by the general fund - by 26.5 billion UAH, by the special fund - by 23.6 billion UAH;
expenses increased by UAH 66.8 billion (by 2.7%), including by the general fund – by 43.2 billion UAH, by the special fund – by 23.6 billion UAH;
the provision of loans was increased by UAH 0.02 billion under the special fund;
the deficit (financing) increased by UAH 16.7 billion (by 1.3%) from the general fund. Thus, it is proposed to set the limit of the state budget deficit at the level of 20.6% of the projected GDP.
In the revised draft law, as stated, it is proposed not to change the amounts of the minimum wage and subsistence minimum per person on a monthly basis. At the same time, the government is mandated to work out the issue of increasing expenditures to increase the living wage and minimum wage for 2023 after the end of martial law, based on the available financial resources of the state budget and an assessment of the validity of the additional need for budget funds.
During the preparation of the draft state budget for 2023 for the second reading, the main forecast macro-indicators of economic and social development for 2023 were adjusted (refined based on more conservative assumptions), on which the budget indicators were revised, in particular:
the refined forecast of nominal GDP is UAH 6,279.3 billion (previous forecast – UAH 6,399 billion),
real GDP growth - at the level of 3.2% (preliminary forecast - 4.6%),
consumer price index (December to December of the previous year) - 128% (preliminary forecast - 130%),
adjustment of assumptions regarding the exchange rate of the hryvnia to the US dollar at the end of 2023 – 45.8 hryvnias/dollar. USA (preliminary forecast – UAH 50/USD), while its average annual value remains unchanged (forecast – UAH 42.2/USD).
As for revenues, the forecast indicators have been increased: funds transferred by the NBU (by UAH 51.6 billion); VAT on goods imported into the customs territory of Ukraine (for UAH 27.1 billion); tax and personal income tax (for UAH 14.8 billion); excise tax on excise goods (products) imported into the customs territory (for 7 billion UAH). At the same time, the forecast indicators were reduced: rent for the use of subsoil for the production of natural gas (by UAH 23.45 billion); corporate income tax (for UAH 21.3 billion); VAT on goods (works, services) produced in Ukraine, taking into account budget compensation (6 billion UAH).
Regarding debt indicators and financing, the forecast of external borrowings was increased by UAH 16.7 billion (to UAH 1,442.9 billion), respectively
the maximum amount of public debt by the end of 2023 was increased to UAH 6,422.7 billion, which is 102.3% of the forecast GDP.
As for expenditures, the total resource for national security and defense has not changed and amounts to UAH 1,141.1 billion (or 18.2% of GDP), while the expenditures for:
financial support for the payment of pensions, allowances and increases to pensions assigned under pension programs, and the deficit of the Pension Fund - by UAH 38.9 billion;
measures at the expense of funds from the fund for liquidation of the consequences of armed aggression - for UAH 16.1 billion (in connection with the increase in the forecast of funds from the NBU, which are the source of the formation of this fund);
expenses of the state road fund (in connection with the increase in the forecast of individual revenues, which are the sources of the formation of this fund) - by UAH 7 billion, of which for: development and maintenance of the network of state highways - by UAH 4.2 billion; subvention to local budgets for financial support of construction, reconstruction, repair and maintenance of local highways, communally owned streets and roads in settlements - for UAH 2.46 billion;
measures regarding some budget programs of the Ministry of Culture and Information Policy - a total of UAH 1.6 billion;
the judiciary - for UAH 1.3 billion (including the State Judicial Administration - for UAH 1.1 billion);
measures related to some budget programs of the Ministry of Education and Science - for a total of 0.56 billion hryvnias.
Regarding some issues of regional development and inter-budgetary relations, then:
transfers from the state budget to local budgets were increased by UAH 2,518.6 million, in particular, from the special fund - by UAH 2,464.6 million (the subvention for financial support for the construction, reconstruction, repair, and maintenance of local highways and streets was increased by this amount) and communally owned roads in settlements);
expenditure under the budget program "State Fund for Regional Development" in the amount of UAH 2 billion is provided for under the general fund. At the same time, for this purpose, 100% of the excise tax on cigars produced in Ukraine and imported into the customs territory of Ukraine in excess of the total volume, determined in the amount of UAH 831 million, is provided for this purpose, provided that appropriate changes are made to the Tax Code of Ukraine.
"According to the results of consideration of this issue, the budget committee made a decision: to recommend to the Verkhovna Rada of Ukraine the draft law on the State Budget of Ukraine for 2023 (reg. No. 8000 dated 31.10.2022) to be adopted in the second reading and in general as a law, taking into account the committee's proposals on changes to the draft law , agreed with the Ministry of Finance of Ukraine," the parliament reported.
The Servant of the People political party expects the State Budget for 2023 to be adopted in the second reading by November 10.