Minister of Finance Oleksandr Danyliuk: in the state budget for 2018, all expenses are duly covered by revenues

“We prepared the state budget not on the basis of expenses and spending wishes, but on the basis of revenues and real capacities. That is why, all budget expenses are backed by revenues”, Minister of Finance Oleksandr Danyliuk said presenting the draft state budget for 2018 at the Parliament on September 22.

According to the Minister of Finance, the budget for 2018 has no space for bloated expenses or hidden revenues. The budget revenues only reflect the generating capacity of the economy without increasing the taxes. The Government clearly opposes a tax increase, since it is interested to foster a business-friendly environment in Ukraine.

“To make people feel the difference and to make our country develop successfully, we must foster our economy, and everything is in our hands here. We can make it by pursuing a transparent privatization, attracting investments, de-shadowing the economy, disrupting corrupt schemes and tackling corruption. Some steps in this direction we have already made, but we still have a long way to go, and this is our responsibility”, Oleksandr Danyliuk said.

The Minister of Finance reported that the Ministry of Finance had already launched a transparent automated register for VAT refund thus making corruption in this area impossible. This step also helps regain the trust of business, creates equal conditions for all businesses and makes business in our country easier.

Also, the automated system for VAT-related risk monitoring is already in place which prevents stealing from the state budget and illegal VAT refund. This is how the state budget used to lose billions of hryvnas. The Ministry of Finance has stopped it. This is a revolution in the tax area.

“All attempts to return to the old system must be stopped, because this would result in direct state budget losses and lower revenues as well as would indirectly affect the business climate and the trust which was so hard to regain”, the Minister said.

According to Oleksandr Danyliuk, the priority steps include the comprehensive reform of the SFS which shall completely reload the system of interaction between tax payers and tax authorities. The necessary funds for this reform have been allotted in the state budget 2018.

Also, the draft law on the Financial Investigation Service which was prepared by the Government must be presented to the Parliament. The creation of the Financial Investigation Service is a long-expected step towards business. Any further delays in this area would affect the economic development.

“The draft law on the Financial Investigation Service which was elaborated by the Government has already been approved by the Government and agreed with our international partners. It provides necessary powers to fight economic crimes against the state, ensure the independence and professionalism of the new authority and is based on the best international practices”, the Minister of Finance said.