The budget of Ukraine and the adoption process: what you need to know

Budget (state budget) – the most important financial document of the country, which is a set of estimates of all state bodies and institutions, programs, and other estimated expenses. Also in the text of the budget required is indicated by the size of the national debt and plans to increase or decrease in the upcoming fiscal year.

In Ukraine, the budget shall be prescribed by a special law, which is being developed by the Cabinet of Ministers and adopted by the Verkhovna Rada on the eve of the start of the new fiscal year (begins January 1 and ends December 31).

Budget process – activities, resulting in the adoption of the law on the budget. It involved not only the Cabinet and the Verkhovna Rada, but only for them in the Constitution set clear deadlines.

Thus, the Cabinet of Ministers on 15 September is obliged to provide the draft law. It is worth noting that for the second year in a Cabinet to cope with this task. Previously, the draft budget regularly became “a gift under the Christmas tree.” In 2015, this victory was only formal – the draft budget for 2016 was introduced in Parliament at the time, but immediately withdrawn for revision back to the Cabinet. The budget in 2018, according to the promises of the head of the Cabinet, to respond to revision and should not be understandable for every Ukrainian.

In this case, until October 20, the Verkhovna Rada should hold the first, and until 20 November – second reading. In the first reading, ideally, Parliament should vote for the adoption of the draft budget as a whole, and the vote to approve the Budget insights. Budget conclusions of the Verkhovna Rada consists of discussions of the draft law and proposals relating to revisions. It is in the Budget of the conclusions of the draft law on budget and preparing for the second reading. The second reading is a second vote for the draft law in General. And if after making edits to a draft law adopted, deputies can already vote for the adoption of the law on the budget. Third reading, if necessary, shall be held not later than November 25. The deadline for the adoption of the budget law of Ukraine – on December 1.

The contents of the budget law standard. It is set by the Budget code of Ukraine. So the budget should contain:

  • macroeconomic indicators:

– the total revenues and total expenditures (with the division into General and special funds and distribution of expenditures on current and capital);
– limit amount of annual deficit (or surplus, but the budget revenue of Ukraine rarely exceed its costs) in a future budget period;
– the size of the national debt and the plans for increase or reduction, including through raising or repayment of foreign loans;
– projected inflation and the national currency of Ukraine;
– forecast the rise or fall of GDP.
– the expected dynamics of imports and exports.

  • social standards:

– the level of the subsistence minimum;
– the minimum wage;
– the minimum pension;

  • revenue from taxes and excise duties;
  • the financial resources of local budgets;
  • purpose of the expenditure of the budget: for example, education, the military, the needs of government agencies, etc.;
  • additional provisions regulating the budget execution process.