Ukraine's Cabinet to submit 2021 budget draft to Rada before Sept 15

Envoy of the Cabinet of Ministers to the Verkhovna Rada, Vasyl Mokan says the government will submit Ukraine's draft national budget for 2021 to the Rada before September 15.

Read alsoZelensky signs into law bill to raise minimum wage from Sept 1"Of course, the draft national budget for next year is among the main issues of the session. I'd like to inform you that the work is underway and the draft of our state's main financial document will be submitted before September 15," he said at a meeting of the Conciliation Council in Parliament on August 31.

Features of the 2021 national budget

The Finance Ministry is drafting the national budget for 2021 based on the outlook of economic and social development for 2021-2024, elaborated by Ukraine's Ministry for Development of Economy, Trade, and Agriculture as part of a new forecast cycle and approved at a government meeting in July 2020.

According to the updated macroeconomic forecast, the country's gross domestic product (GDP) may increase by 4.6% in 2021. Inflation may reach 7.3% in December 2021 year-over-year (y-o-y). The inflation rate in 2021 is expected at 8.1% on average.

The average monthly salary in Ukraine in 2021 should be UAH 13,632 (nearly US$496).

Exports of Ukrainian goods are projected at US$60.175 billion in 2021, while imports are expected at US$70.591 billion.

State budget: background

• On August 29, 2020, Ukrainian President Volodymyr Zelensky signed into law Bill No 822-IX passed by the Verkhovna Rada at its extraordinary session on August 25 to amend the law on the 2020 national budget of Ukraine.
• On August 6, President Zelensky initiated changes to the national budget to raise the minimum wage to UAH 5,000 (US$182) from September 1, 2020.
• The minimum wage in Ukraine from January 1, 2020, increased by UAH 550 (US$20), to UAH 4,723 (US$172) per month, or UAH 28.31 (US$1.03) per hour.