The Government adopts the draft of the key budget figures for 2017

25 June 2016

On June 24, the Cabinet of Ministers adopted the draft of the key budget figures for 2017 (so-called Budget Resolution).The draft was elaborated by the Ministry of Finance according to the Working Program of the Cabinet of Ministers, the Coalition Agreement, the targets of the Priority Action Plan of the Government for 2016 and the sustainable development strategy “Ukraine-2020”. It is also based on the terms of cooperation with the IMF and other international organizations. Also, the authors of the draft took into account suggestions of the Presidential Administration, ministries as well as national employers’ associations and trade-union associations.

The Budget Resolution for 2017 contains a forecast on the key macro-parameters of the economic and social development of Ukraine for 2018 and 2019 which makes it possible to ensure the balanced and durable budgetary system in the mid-term run.

Presenting the key budget figures for 2017, Minister of Finance Oleksandr Danyliuk pointed out that the document sets reference points for the elaboration of the state budget for 2017 and this decision of the Government completes one of the stages of the current budget process. At the same time, Oleksandr Danyliuk emphasized that the development of new approaches in issuing the budget resolution and the budget declaration is a priority for the Ministry of Finance.

“We will continue our consistent preparations for the adoption of the next year’s budget. There is no reason to worry about the state budget for 2017. Also, the elaboration of new approaches in issuing the budget resolution and budget declaration for a period of three years is still one of the priorities of the Ministry of Finance in reforming the budget process. As early as in 2017 we will be pursuing the budget process in line with the new rules”, the Minister of Finance said.

According to the decision of the Government, the Budget Resolution for 2017 will soon be presented to the Parliament.

Forecast budget figures for 2017-2019:

FIGURES	2017	2018	2019
NOMINAL GDP	UAH 2584.9 bn	UAH 2867.5 bn	UAH 3148.4 bn
GDP INCREASE	3%	4%	4%
MAXIMUM BUDGET DEFICIT	3%	2.5%	2.3%
CONSUMER PRICE INDEX (DECEMBER VS. DECEMBER OF PREVIOUS YEAR)	8.1%	5.5%	5.2%
MANUFACTURERS’ PRICE INDEX (DECEMBER VS. DECEMBER OF PREVIOUS YEAR)	8.5%	5.9%	4.7%
UNEMPLOYMENT RATE FOR CITIZENS BETWEEN 15 AND 70 YEARS	8.6%	8.3%	8.0%
EXCHANGE RATE UAH/USD (ANNUAL AVERAGE)	27.2 hryvnas	27.8 hryvnas	28.1 hryvnas
MAXIMUM PUBLIC DEBT	66% of the GDP	Max. 63.9% of the GDP	Max. 61.8% of the GDP

MAX. GOVERNMENT-BACKED DEBT WARRANTS	Not more than 5% of the state budget revenues
DEVELOPMENT AND IMPLEMENTATION OF PUBLIC INVESTMENT PROJECTS IN PRIORITY AREAS	At least 1 billion hryvnas every year
MINIMUM SALARY	Not lower than the living wage for employable citizens

INCREASE OF THE LIVING WAGE	At least 2% within the expected consumer price index	Faster than the expected consumer price index
INCREASE OF SALARIES FOR EMPLOYEES OF SALARY GRADE I OF THE UNITED SALARY CLASSIFICATION		Faster than the expected consumer price index

SHARE OF GDP TO BE DISTRIBUTED
VIA THE STATE BUDGET

Not higher than in the
state budget for 2016 (33.1%)

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