Cabinet starts negotiations with IMF on 2021 state budget deficit

The Cabinet of Ministers is negotiating with the International Monetary Fund to reduce the deficit, which is laid down in the draft 2021 state budget of Ukraine.

That's according to Prime Minister Denys Shmyhal, who spoke on the issue during a working trip to Lviv region, the Government press service reports.

State budget deficit

"This year the deficit is 7.5%, about UAH 298 billion. Next year we plan 6%, but now we are negotiating with the International Monetary Fund to reduce it somewhat. At the same time, both this year's budget and next year's budget are realistic and will be fully implemented," the Cabinet press service quoted Shmyhal as saying.

Read alsoBudget spending on President's Office to be reduced in 2021 – YermakAccording to the prime minister, the government's strategy is to further reduce both the budget deficit and public debt. The head of government also noted that a moderate economic recovery is observed in the third quarter of this year, which will continue into 2021.

2021 State Budget

• On September 14, the Cabinet of Ministers approved the draft 2021 state budget, providing for a deficit of 6% of GDP (UAH 270 billion).
• Revenues are laid down at UAH 1.071 trillion and expenses – at UAH 1.35 trillion.
• On September 18, Finance Minister Serhiy Marchenko presented the draft state budget in Parliament.