Zelensky Approves 2024 State Budget Law

by Roman Cheplyk
Tuesday, November 28, 2023
Zelensky Approves 2024 State Budget Law

President Volodymyr Zelensky has signed into law the state budget for 2024, following its adoption by the Verkhovna Rada on November 9

The budget outlines revenues projected at UAH 1.76 trillion and expenditures totaling 3.35 trillion UAH, leading to an anticipated state budget deficit of UAH 1.57 trillion. External borrowings are expected to reach around $41 billion.

The primary focus of the budget is security and defense, which accounts for 22.1% of the total expenditure, equivalent to UAH 1.69 trillion. Significant investments are planned for the defense-industrial complex, including UAH 43 billion for UAV production and a similar amount for the production of ammunition and weapons within Ukraine.

Notably, the funding for the national security and defense sector will be derived entirely from internal sources such as taxes, customs payments, dividends from state-owned enterprises, proceeds from privatization, and government bond placements.

To address the budget deficit of UAH 1.57 trillion, the financing will involve external borrowings amounting to 1.67 trillion UAH, the issuance of government bonds worth 525.9 billion UAH, and revenues from privatization estimated at 4 billion UAH.

The budget projections are based on a forecast of 4.6% real GDP growth and an inflation rate of 9.7% for the next year. The average annual exchange rate of the dollar is expected to be UAH 40.7.

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