Ukraine’s GDP expected to grow by 3.8% in 2022 – Marchenko

Ukraine's draft state budget for 2022 envisages economic growth of 3.8%, inflation at 6.2% and an average annual exchange rate of UAH 28.6 per U.S. dollar, Finance Minister Serhii Marchenko has said.

He said this at a government meeting on Wednesday, September 15, presenting the country's draft state budget for 2022, according to an Ukrinform correspondent.

"[The draft budget] envisages GDP growth of 3.8%, inflation at 6.2%, and an average annual exchange rate of UAH 28.6 per U.S. dollar," Marchenko said.

According to him, the country's main financial document takes into account the objectives of the medium-term policy. The priorities of the budget for 2022 are a 1.6-fold increase in the salaries of doctors and health workers, an increase in the amount of student scholarships, and the provision of housing for all Donbas war veterans who are on the housing waiting list.

The budget deficit next year is projected to fall to 3.5% of GDP year.

Revenues are projected at UAH 1.277 trillion, which is UAH 161.7 billion more than envisaged in 2021.

Expenditures are planned at UAH 1.465 trillion, including UAH 197 billion to be spent on the health sector, UAH 185.6 billion on education, and UAH 531.2 billion on pensions.

Ukraine's draft state budget for 2022 was prepared for the first time taking into account the parameters of the medium-term Budget Declaration (for 2022-2024), which the Verkhovna Rada approved in July 2021.

According to Prime Minister Denys Shmyhal, the draft state budget for 2022 is not only balanced and realistic but is also a budget for the country's modernization.