The bill on the budget was finalized with due regard to the earlier adopted laws / Photo from UNIAN
The Verkhovna Rada has passed a bill on the national budget for 2016 as a basis and as a whole document (unlike voting article by article) with a deficit set at 3.7% of GDP and revenue planned at UAH 595 billion.
The budget was supported in the early hours of Friday by 263 MPs with the required number of votes being 226.
The bill on the budget was finalized with due regard to the earlier adopted laws.
Introducing the finalized budget, Ukrainian Finance Minister Natalie Jaresko said that the authors of the bill had taken about 20 different amendments into account.
In particular, the revenue of the budget had originally been planned at UAH 601 billion.
The adoption of the budget was a key recommendation to Ukraine from its major lender, the International Monetary Fund, which was supported by the U.S. Department of the Treasury and the G7 embassies in Ukraine.
"The deficit remains within the indicators outlined by the IMF," Jaresko said.
Concluding the discussion of the draft budget, Prime Minister Arseniy Yatsenyuk thanked all MPs for their support and work.
"Together we managed to finalize legislative acts submitted by the government in a more efficient way," the prime minister said.
"We support all the proposals of the parliamentary factions, which are aimed at economic stabilization. We will have to continue work – not only on this budget, but with regard to all the reforms concerning taxes, healthcare and education. And I remain an optimist. We are able to implement reforms and achieve results. Unity is a key to our success."
Earlier, the Ukrainian government presented the draft state budget, according to which the country's public debt remained unchanged at UAH 1.5 trillion, the maximum amount of state guarantees was fixed at UAH 28.2 billion. In addition, the draft budget envisages that the Ukrainian government will additionally provide $700 million to the special energy reserve fund in 2016. The volume of loans is set at UAH 202.997 billion. The minimum income level will amount to UAH 1,330 since January 1, 2016, UAH 1,399 since May 1, 2016, UAH 1,496 since December 1, 2016. The minimum monthly wage will amount to UAH 1,378 from January 1, 2016, corresponding to the current level of the minimum wage. In May 2016, the minimum wage will be increased to UAH 1,450, and in December to UAH 1,550.
Read alsoAdditional tax on imports into Ukraine to be lifted earlier than plannedIn addition, on December 24, the Verkhovna Rada adopted a number of legislative changes related to the tax system with a view of ensuring revenues to the budget.
In particular, according to Finance Minister Jaresko, based on the results of voting the single social security tax in 2016 was reduced to a flat rate of 22%, while its withholding from wages (income) of individuals was abolished. In addition, natural gas extraction tax has been reduced, along with the abolition of a special import tax starting from January 1, 2016. International technical assistance shall be exempt from taxation. An electronic excise invoice shall be introduced next year aimed at de-shadowing the fuel market.