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The state debt ceilings are set at 56% of GDP in 2019, 54% in 2020, and 53% in 2021.
Ukraine's Cabinet of Ministers has approved guidelines of budget policy for 2019-2021.
A Cabinet resolution on the approval of draft guidelines of budget policy for 2019-2021 was passed at a government meeting on Wednesday, April 18, without debates, an UNIAN correspondent said.
In the document, the government pledges to ensure a balanced approach to and sustainability of the country's budget system. In particular, the Cabinet will review excise duties on alcohol, environmental tax and royalties on the production of mineral resources. What is more, the Ukrainian government plans to adjust excise duty on tobacco to the EU level. It will also hold talks with Germany, France, India, Kazakhstan, Montenegro, the United Arab Emirates, and Moldova to avoid double taxation.
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The government also undertook to ensure the implementation of investment projects in the social and cultural sectors, health care, the energy sector, processing industry, environment protection, transportation, and the public services sector.
The Cabinet also said that the financial decentralization course would be maintained.
The guidelines of budget policy for 2019-2021 foresee an acceleration in economic growth in Ukraine in 2019 to 3.6% amid 6.5% inflation and the average annual forex rate set at UAH 30.5 per U.S. dollar.
The deficit of the budget in 2019 is projected at 2.2% of GDP.
Economic growth in 2020 and 2021 is forecast at 4% and 6.3%, respectively, while inflation is projected at 5% and 4.8%, respectively. Unemployment is expected at 8.5% in 2020 and 8.3% in 2021 and the average annual forex rate at UAH 31.4 and UAH 31.8 per U.S. dollar, respectively. The deficit of the national budget in 2020 and 2021 will be capped at 2% of GDP.
The state debt ceilings are set at 56% of GDP in 2019, 54% in 2020, and 53% in 2021.