Government Approved Draft State Budget of Ukraine for 2023

On September 13, the Government approved the draft law on the State Budget of Ukraine for the year 2023. The draft budget will be submitted with the relevant materials to the Parliament of Ukraine for consideration in the nearest future.

"The State Budget 2023 is the budget of a country in a war that has been suffering significant losses for more than six months due to the full-scale military invasion of russia on the territory of Ukraine. That is why the Government plans to increase financing of the security and defense sector at the level of 17.8% of GDP, which is three times more than what was in the 2022 state budget.

The 2023 State Budget is the budget of a country that will become stronger, strengthen its defense capabilities, be able to rebuild after the damage caused by russian armed aggression, and also take care of those citizens who need it", stressed Minister of Finance of Ukraine Sergii Marchenko during a meeting of the Cabinet of Ministers.

The total amount of State Budget revenues is forecasted at UAH 1,279.1 billion (general fund – UAH 1,146.6 billion; special fund – UAH 132.5 billion).

The expenditures of the State Budget and issues of loans are planned in the amount of UAH 2,573.4 billion (general fund – UAH 2,268.5 billion, special fund – UAH 304.9 billion).

The draft State Budget of Ukraine for 2023 includes, in particular, the allocation of resources to the following priority areas:

• national security and defense - UAH 1,141.1 billion or 17.8% of GDP;
• healthcare - UAH 175.7 billion;
• education - UAH 155 billion;
• pension payments and social protection - UAH 835 billion;
• support for war veterans - UAH 6.8 billion;
• Reserve fund - UAH 17.4 billion;
• Fund for liquidation of the consequences of armed aggression - UAH 19 billion;
• Business Development Fund - UAH 16 billion;
• business grants - UAH 1.37 billion.

The budget deficit is planned at the level of 20% of GDP, which is planned to be covered by state borrowings in the amount of UAH 1,686.8 billion (general fund – UAH 1,516.8 billion, special fund – UAH 170.0 billion), repayment of the state debt is UAH 415.0 billion planned.

Despite the difficult conditions of martial law, the draft budget maintains the level of social standards: from January 1, 2023, the minimum wage will be UAH 6,700 per month, and the subsistence minimum for one person per month will be UAH 2,589.

In the Parliament of Ukraine, the draft law of Ukraine "On the State Budget of Ukraine for 2023" will be presented by the Minister of Finance of Ukraine Sergii Marchenko.