Validity of the Ukrainian State Budget Statements

by Olha Povaliaieva
Thursday, December 23, 2021
Validity of the Ukrainian State Budget Statements

Economists have given their estimates to the new budget project. Thus, we are checking what points correspond to reality

On December 2, the Ukrainian parliament signed the State budget for 2022. Key points are:

  • The minimum living wage of one person is $77.06-98.49. It depends on the social and demographic group;
  • There is an option to get a governmental loan. It is $863.540.76 established for that purpose;
  • The credit amount to be granted in 2022 from the Special state fund is $605.856.26;
  • Overall creditworthiness should be $754.491.98;
  • Expenditures and revenues of the Ukrainian budget are calculated at $54.958.023.35 and $48.516.254.98, respectively.

One could say that the Budget Act 2022 is quite realistic. The deputies left a reserve for income from revenue-producing activities because Ukraine’s macroeconomic forecast of GDP is 5% lower than the latest IMF data.

It should also be noted that the new year expenditures will not increase much, although digits differ from ones we had in previous years.  This is due to the fact that the official inflation target is 7.3%. The expenditure part, although increasing, is at 7.6%.

There are, of course, points that need to be worked on because they seem unrealistic for next year. For example, the budget indicates that 1 UAH will be equal to $1.05. But today, 1 UAH is $0.037.

In general, the document, almost everywhere, objectively assesses the income and expenditure of Ukraine. It should be noted that the real and unlimited state budget results from good work with tax and fee administration.

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