PM Shmyhal: Budget deficit one of Europe's lowest

Prime Minister Denys Shmyhal says the deficit of Ukraine's national budget is one of the lowest indicators in Europe.

He announced this on TV Channel Ukraine 24.

"When today we take European countries and see what deficits in developed economies, in neighboring countries are, then Ukraine has one of the lowest budget deficits. This year, 7.5% is one of the lowest indicators in Europe ... It is absolutely moderate, all international experts say this," he said.

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He also mentioned inflation trends.

"When we speak about the budget deficit and someone starts manipulatively saying that money is being printed, there is inflation – let's see what the inflation rate this year is. We expect about 4.5% for the year. This is one of the lowest inflation indicators over [Ukraine's] independence; it is approximately equal to last year's figure. In the autumn months, inflation was below 2%, there were months this summer when deflation was recorded. We do not see the indirect signs that money is being printed," he said.

Draft budget 2021: Key points

• The draft national budget for 2021, which was approved by the Cabinet of Ministers on September 14, 2020, provides for revenue at UAH 1.07 trillion (US$38 billion), while spending at UAH 1.35 trillion (US$47.4 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$3.6 billion) in benefits and subsidies. In total, social expenditures stand at UAH 323 billion (US$11.3 billion).
• The bill on Ukraine's national budget for 2021 passed its first reading in the Verkhovna Rada on November 5.