Last year, the Verkhovna Rada did not adopt a budget declaration.
The Cabinet of Ministers of Ukraine has prepared a draft resolution on the main directions of the budget policy for 2019-2021 (budget declaration).
A copy of the document was at the disposal of the Ukrainian economic news outlet Economichna Pravda.
The budget declaration is prepared by the Ministry of Finance set to determine main directions of the budget policy for the next years and the macro forecast, based on which the draft budget for the next year will be calculated. The budget process begins with its preparation, the report reads.
According to the declaration, the nominal GDP in 2019 will amount to UAH 733.9 billion, real GDP – 3.6%, inflation (December against December) – 6.5%.
The hryvnia forex rate (on average for the period) is set at UAH 30.5 to the dollar.
The unemployment rate of the population aged 15-70 years according to ILO methodology is 8.9%.
These macro indicators are preliminary and can be adjusted depending on economic realities.
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The maximum amount of public debt is no more than 56% of GDP.
The subsistence minimum will grow three times a year. From January 2019, it will amount to UAH 1,853, from July – UAH 1,936, from December – UAH 2,011.
Priorities in the tax policy include the following steps: revision of excise rates for alcoholic beverages and environmental tax, depending on inflation; continued gradual work to approximate excise rates on tobacco to the European level; elaboration of the issue of introducing an exit capital tax; negotiations on the revision of international treaties on avoidance of double taxation with Germany, France, India, Kazakhstan, Montenegro, UAE and Moldova.
Unlike the previous budget declaration for 2018-2020, the Ministry of Finance did not determine the main indicators of the state budget for the next three years (2019-2021) and the expenditure ceilings of the main administrators of budgetary funds.
Last year, the Verkhovna Rada did not adopt a budget declaration.