Ukraine, IMF to continue discussion of state budget for 2018

The discussions will continue in the coming weeks to ensure that the approved budget deficit is consistent with the 2.5% of GDP deficit target agreed under Ukraine's economic reforms program supported by the IMF, Ljungman said in a statement following technical consultations on the draft 2018 budget.

Read alsoUkraine National Bank sees no alternative to cooperating with IMFAs UNIAN reported earlier, the Verkhovna Rada on November 14 adopted as the basis the government-drafted budget of Ukraine for 2018 with a deficit of UAH 77.9 billion, or 2.4% of GDP, with a number of amendments, according to the conclusion of the Budget Committee. The budget was developed based on the medium-term budget resolution for 2018-2020 with the projected economic growth at 3% in 2018 amid 11% inflation.

Based on the results of the draft law analysis of over 2,000 amendments submitted by MPs, the parliament's Budget Committee suggested that spending on the number of programs be increased. It shall be compensated for with UAH 1.725 billion in profit, transferred by the National Bank and receipts for a number of taxes and fees, in particular, on individual income tax and rent for the use of subsoil for natural gas extraction.

The full text of the 2018 state budget, as amended, has not yet been made public, but the Finance Ministry promises to prepare the draft for the second reading in two weeks, or by the end of November.

In March 2015, the IMF approved a four-year EFF loan program for Ukraine under which $17.5 billion will be disbursed. Ukraine has already received four disbursements from the Fund to the tune of $8.7 billion.