Parliament of Ukraine Adopted State Budget for 2024

Today, on 9 November 2023, the Parliament of Ukraine approved the draft Law of Ukraine "On the State Budget of Ukraine for 2024" in the second reading and in general.

"The priorities of the State Budget are clear: strengthening defence capability, protecting the population, supporting veterans, raising social standards and economic recovery. The Budget takes into account the main guidelines of the future Ukrainian Doctrine of the President of Ukraine. Expenditures on security and defence will not be less than last year, and this also includes investments in domestic production and improvement of the technological potential of the Armed Forces of Ukraine. We will have more drones and our own weapons to win in a quick manner. We plan to index pensions and increase teacher salaries. The amount of funds allocated to support veterans is twice as much as last year. Business support programmes will also be financed, as the economy needs to develop," said Minister of Finance of Ukraine Sergii Marchenko in his speech to the Parliament of Ukraine.

State Budget revenues have been increased by UAH 22.2 billion compared to the first reading and will amount to UAH 1,768 billion.

Expenditures amounts to UAH 3,355 billion, including general fund expenditures of UAH 3,120.6 billion and special fund expenditures of UAH 234.5 billion.

State Budget priorities:

UAH 1,692.6 billion for the defence and security sector. This is 22.1% of GDP.

The Budget provides for an increase in funding for the development of the defence industry, in particular for the production of weapons - UAH 51 billion, as well as UAH 43.3 billion for marine drones and UAVs.

UAH 469.4 billion - social protection of citizens; 

UAH 14.3 billion - support for war veterans;

UAH 203.4 billion - healthcare;

UAH 179.1 billion - education;

UAH 10.2 billion - culture and media;

UAH 7.6 billion - sports;

UAH 2.5 billion - digital transformation;

UAH 13.6 billion - science;

UAH 30.9 billion - business support.

The State Budget deficit is UAH 1,571.5 billion.

The revised forecast of macroeconomic indicators for 2024, which was taken into account when finalising the draft State Budget for the second reading, provides for

• nominal GDP - UAH 7,643 billion;

• real GDP growth by 4.6%;

• consumer price index (December to December) - 9.7%;

• growth in exports of goods and services by 9.0%;

• average monthly salary - UAH 21,809;

• UAH exchange rate (average for the year) UAH 40.7 per USD. 

At the same time, the revised draft State Budget retains:

• transfer of personal income tax on military salaries to a special fund of the State Budget instead of local budgets with their targeted use for the purchase of special machinery and equipment and the development of the military-industrial complex; the resource in 2024 is UAH 96.3 billion;

• transfer of taxes and fees that are currently a source of revenue for the Road Fund (mainly excise and import duties on vehicles and fuel) to the general fund of the State Budget - a resource of about UAH 95 billion.

The part of the profit transferred to the State Budget by the National Bank of Ukraine did not increase and remained unchanged at UAH 17.7 billion.

The need for external support for non-security and defence expenditures is about USD 41 billion. 

This amount was reduced by USD 1.9 billion by the second reading. This was reduced by USD 1.9 billion due to revised revenues and rebalancing of financing indicators following negotiations with the IMF.

Funds are planned to be raised from international partners to meet the urgent needs of the State Budget, in particular in the social sphere and for humanitarian needs, from the United States of America, the European Union, the International Monetary Fund, the World Bank, Japan and other donors.

State borrowings are planned in the amount of UAH 2,132 billion, including domestic borrowings of UAH 525.9 billion.

Public debt repayments will amount to UAH 627 billion, and its servicing will amount to UAH 420 billion.