Ukraine Cabinet seeks to reconsider state budget in autumn

"The basic ideology of amendments to the state budget, which have already been introduced, is the strengthening of social protection of citizens, as well as support and strengthening of our army's combat capacity. Here are the two main accents. Today we see a positive trend, and I am confident that we will do everything to make another revision of the state budget in September-October, when we could once again return to strengthening social protection programs. In the context of pension reform, we will implement at least our program on 'modernization' of pensions by the end of the year, which all citizens are waiting for," Rozenko said.

He also specified that the main factor of the state budget revenue super-planned growth is a twofold increase in the minimum wages, up to UAH 3,200 (US$124) from January 1, 2017.

"The State Treasury Service of Ukraine notes a significant overfulfilment of the state budget. It released official data on state budget revenue, which exceeded the targeted UAH 42 billion [$1.6 billion] as of July. This is first and foremost, the result of Ukrainian economy as well as the reforms the current government is implementing now," Rozenko said.

According to the official, the rise in the minimum wage allowed increasing the payroll, and hence the income to the Pension Fund, as well as state and local budgets.

Read alsoNaftogaz boasts UAH 72 bln in taxes, dividends paidAs UNIAN reported earlier, on July 13, the Verkhovna Rada adopted in the second reading and in general the amendments proposed by the Cabinet of Ministers to the 2017 state budget of Ukraine regarding the increase in revenue due to overfulfilment of targets and distribution of super-planned revenue.

According to the explanatory note to the bill, expenditures and revenues of the Ukrainian state budget will increase by UAH 26 billion ($1 billion) in 2017, including by UAH 25 billion ($966 million) in the general fund. It is planned to establish the state budget revenue at UAH 757 billion ($29.2 billion), expenditures – at UAH 827.14 billion ($32 billion), while maintaining the maximum deficit – at UAH 77.65 billion ($3 billion).

Read alsoUkraine's government may increase minimum price for liquorIn particular, the bill stipulates the increase in subsidies for housing and utilities by 30%, or UAH 14.1 billion ($545 million), to UAH 61.174 billion ($2.4 billion), while in defense spending and state security – by UAH 2.663 billion ($103 million).

On August 1, Ukrainian President Petro Poroshenko signed the law on amendments to the law of Ukraine on the national budget of Ukraine for 2017.