Ukraine's parliament passes state budget for 2020

The Verkhovna Rada, Ukraine's parliament, has passed at second reading and as a whole the bill on the state budget of Ukraine for 2020, finalized taking into account the updated government forecast with GDP growth set at 3.7%.

Relevant bill No. 2000 was backed by 280 MPs with the required minimum of 226 votes, according to an UNIAN correspondent.

As UNIAN reported earlier, the Verkhovna Rada Budget Committee decided to recommend that the parliament pass the state budget of Ukraine for 2020 in the second reading and as a whole as a bill, taking into account the proposals set out in the committee's conclusion.

Presenting the document, Ukrainian Finance Minister Oksana Markarova called the 2020 budget realistic and balanced, noting that local budgets would get much more resources next year.

Read alsoUkraine's finalized budget draft for 2020 based on forex rate set at UAH 27.5 per U.S. dollar

"An increase in spending on healthcare and education is foreseen in this budget. This budget provides much more significant funds for infrastructure. The costs of local governments have not been reduced in this budget, but rather increased," she said.

According to the minister, what looks like a reduction, in fact, is a reclassification of certain expenses.

"You know this year social programs and healthcare reform go through other mechanisms that are already in the budget. Therefore, we just fulfill the state budget. At the same time, all transfers and all subventions to local budgets, including the State Regional Development Fund, social economy, the subvention to the united territorial communities are larger than last year," Markarova added.

She emphasized that all local budgets were adequately provided for, and today, by voting for amendments to the Budget Code, the lawmakers added another UAH 7 billion (US$287.2 million) from the road fund to local budgets.

According to the conclusion of the Verkhovna Rada Budget Committee, the finalized draft envisages that revenues will be increased by UAH 14 billion (US$547.4 million), expenses will grow by UAH 10 billion (US$410.3 million), and the deficit will be reduced by UAH 855 million (US$35 million), i.e. it remains within 2.1% of GDP.

As UNIAN reported earlier, the Cabinet of Ministers on November 5 submitted to parliament a finalized draft budget for 2020, based on an updated forecast of a 3.7% increase in GDP.