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Ukraine's Finance Ministry has successfully finalized discussions with the IMF on the main parameters of the draft state budget for the year 2021, which was one of the main prerequisites for starting the first revision of the IMF Stand-by Program, setting up the mission date of the IMF European Department and receiving another tranche.

"The main focus of the discussions was on developing a common vision of the main budget parameters within the current program between Ukraine and the IMF - the revenues, the expenditures and the deficit indicator," the ministry said on its website.

"The Ministry of Finance held daily consultations with the Fund's experts on the possibilities of financing the deficit and priority budget expenditures in 2021. In general, the budget-2021 parameters coincide with the estimates of the Fund's experts, which was important for the continuation of successful cooperation between Ukraine and the IMF," reads the report.

Draft budget 2021: Key points

The draft 2021 national budget, approved by the Cabinet of Ministers on September 14, 2020, provides for revenue at UAH 1.07 trillion (US$37.7 billion), while spending at UAH 1.35 trillion (US$47.6 billion). The deficit is expected to be 6% of GDP next year. The budget deficit is capped at UAH 270 billion (US$9.5 billion).

The national budget draft also envisages UAH 104 billion (US$3.7 billion) in benefits and subsidies. In total, social expenditures stand at UAH 323 billion (US$11.4 billion).

The draft 2021 national budget passed its first reading in the Verkhovna Rada on November 5.