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Ukraine's Finance Ministry has proposed that the government approve the draft budget for 2016, which projects revenues at UAH 598.2 billion, expenditures at UAH 674 billion, with the maximum budget deficit set at UAH 83.7 billion, or about 4% of GDP, and the public debt ceiling set at UAH 1.5 trillion, or about 96% of GDP.
The draft budget document is available on the ministry's website.
In addition, the Finance Ministry projects the maximum amount of state guarantees at the level of UAH 28.2 billion and increase in the minimum income level to UAH 1,496, or $62.46 (at the official forex rate as of December 1, 2015) by the end of the year.
This year's budget has estimated revenues of UAH 502.260 billion and expenditures fixed at UAH 566.870 billion, with the maximum amount of the deficit set at UAH 75.820 billion, or 4.1% of GDP. The public debt ceiling is fixed at UAH 1.394 trillion. The minimum income level amounts to UAH 1,330, or $55.53 (at the official forex rate as of December 1, 2015) since September 1, 2015. The same level of the minimum income is projected in the draft budget for 2016 for the period from January 1 to May 1, 2016. On May 1, 2016, the minimum income level will be increased to UAH 1,399, or $58.41.
The minimum wage will also be reviewed in May and December 2016. From January 1, 2016, the minimum monthly wage will amount to UAH 1,378, or $57.54, corresponding to the current level of the minimum wage. In May 2016, the minimum wage will be increased to UAH 1,450, or $60.54, and in December to UAH 1,550, or $64.72.
It is noted the draft budget provides social security payments that will depend on the available financial resources and the budget capacities at all levels.
In addition, the draft budget envisages that the Ukrainian government will additionally provide $500 million to the special reserve energy fund in 2016. The funds will be attracted under the state guarantees.
According to the draft budget, it is proposed that the Finance Ministry be provided with the authority to carry out necessary debt transactions, including the issue of government bonds with the relevant amendments to the budget financial targets, beyond the approved indicators.
As UNIAN reported earlier, the 2016 draft state budget will be submitted for consideration of the government in the coming days, and then to the Verkhovna Rada. The Finance Ministry emphasizes the draft budget has been developed with the direct participation of experts from the International Monetary Fund , Ukraine's key creditor. It is planned that the budget will be adopted by the end of the year, as one the main conditions for the disbursement of the third tranche of loan funds for Ukraine to the tune of $1.7 billion under the IMF's Extended Fund Facility program, which was approved in March 2015.