Social standards and income growth: the officially published text of the budget-2017

The official newspaper of the Verkhovna Rada “Voice of Ukraine” published the Law “On state budget” in 2017. Thus, the law enters into force on 1 January 2017. The President signed a document on December 26.

According to the text of the law, the state budget revenues of Ukraine in 2017 set at 731,03 billion UAH, including the General Fund – 673,74 billion, respectively by 20.3% and 17.1% higher than the income fixed in the state budget for 2016.

According to the law on the state budget-2017 budget expenditures next year is planned in the amount 800,03 billion UAH, including the General Fund – 739,71 billion UAH, exceeding the planned expenditures of the state budget-2016 respectively by 17.4% and 14.3%.

The legislation reduced the limit of the budget deficit next year compared to current year by 7.3% to 77.5 billion UAH, including the General Fund – 9.5% to 62,34 billion.

According to the state budget 2017 the subsistence level with the current 1544 UAH per month will be increased from 1 may until 1624 UAH, from December 1 – UAH 1700, while the minimum wage from 1 January will be doubled to 3200 UAH per month, the hourly rate of up to UAH of 19.34.

The law also sets a limit on the amount of debt at the end of 2017 1 trillion 716,63 billion UAH and limit the size of government guaranteed debt in 579,37 billion than 1 trillion 501,48 billion and 444,78 billion at the end of this year the law on state budget for 2016.

At the same time, as in previous years, the Cabinet of Ministers have the right, if necessary, to carry out issues of bonds of internal state loan (government bonds) in excess of the amounts established for financing the budget deficit, the banks ‘ capitalization and funding of the Deposit guarantee Fund of natural persons, with a corresponding adjustment of the limit amount of debt. In another article stated the necessity of increasing the national debt for the nationalization of systemically important banks.

Revenues from the national Bank in the new year, as established, will increase to 45 billion UAH 38 bln UAH this year, but less than 60,5 bln UAH in the past.

As reported, the state budget for 2017 was based on the growth forecast of Ukraine’s real GDP of 3% and a nominal 14.2% to 2,585 billion with an inflation rate of 8.1%.

For the first 11 months of the year 2016 the state budget deficit 45,54 billion. Its revenues amounted to 543,43 billion UAH, including the General Fund – 506,69 billion UAH, expenses – 588,88 billion UAH, including the General Fund – 556,42 billion.