13:47 05 Nov 2020

Verkhovna Rada approved 2021 budget in principle

Photo: golos.com.ua

Verkhovna Rada approved the state budget for 2021 in principle. The parliamentarians supported the draft resolution №4000-P in principle and as a whole.

275 parliamentarians voted in favor.

Be it noted that before the vote, Parliament Chairperson Dmytro Razumkov addressed Prime Minister Denys Shmyhal and the Cabinet of Ministers with a request to finalize the draft as much as possible.

According to RBC, initially, the state budget revenues were supposed to amount to UAH 1 trillion 071.1 billion, and expenditures were to be UAH 1 trillion 350 billion. The deficit is UAH 270 billion.

"Increase the general fund revenue of the draft state budget by 2021 of Annex №1 to the law draft (with clarifying the relevant final indicators in the Annex and Article 1 of the law draft)," the draft resolution reads.

The budget committee previously said that they propose to increase revenues by 20, 2 billion hryvnias. Meanwhile, the Accounting Chamber noted that they found additional sources of income for an average of 20.6 billion hryvnias.

The level of deficit compared to the current year was reduced by 1.5% up to 6%.

The minimum wage will increase by 30% in 2021. They plan a two-stage increase to 6,000 hryvnias from January 1 and to 6,500 hryvnias from July 1. They also expect the average salary to increase to 13,632 hryvnias in 2021. Real wages (adjusted for inflation) are expected to grow by 12.1% in 2021.

According to the government estimate, inflation in 2021 will accelerate to 7.3%.

The unemployment rate will be 9.2% according to the method of the International Labor Organization.

The state budget draft of Ukraine for 2021 is calculated at the exchange rate of 29.1 hryvnias per dollar.

The minimum pension will increase in 2021 by 9.3%, from 1769 to 1934 UAH. According to the document, the first increase is planned for July 1, when the minimum pension will increase by 4.8% to UAH 1,854. The second increase will be on December 1, when it'll rise by 4.3% to UAH 1,934.

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