Budget-2020: Zelensky wants peace, and Ukraine is preparing for war

Бюджет-2020: Зеленский хочет мира, а Украина готовится к войне

© rada.gov.uaon Friday, October 18, the Verkhovna Rada in the first reading will consider the draft state budget for 2020. At the same time since the presentation of the document, 20 September, deputies have made more than two thousand proposals to the draft law on the state budget. According to preliminary estimates, to account for all of these proposals should be about 1.9 trillion hryvnia (4,9 trillion roubles)the proposal of the deputies handled the budget Committee of the Verkhovna Rada with participation of the Ministry of Finance and the accounting chamber. In the original version of the budget-2020 revenues were laid at the level of UAH 1.08 trillion and expenses of 1.17 trillion UAH.

After considering the proposals of the parliamentary budget Committee recommended the Parliament to adopt the bill in the first reading, taking into account the number of proposals of deputies. It is proposed to consider or only partially consider the proposal to raise minimum wage, minimum wage, aid child birth, and social guarantees for servicemen.

The Committee also adopted the proposal to increase contributions to the budget of the National Bank on a UAH 3.5 bn (9,04 billion rubles), as well as a proposal regarding the distribution of the number of subventions to local budgets.

Under Ukrainian law, the first reading of the draft budget to the Parliament to be held before October 20, the second until 20 November, and the third (if needed) — up to 25 November. The deadline for the adoption of the budget on 1 December.

The main figures of the

The draft budget on 20 September in Parliament presented by the Minister of Finance Oksana Markarova.

Budget revenues in 2020 (with transfers) is provided in the amount of UAH 1,079 trillion (of 2.79 trillion). It is 53 billion UAH (137,04 bn) more than the budget for the year 2019. Including the General Fund — 962,7 billion (of 2.49 trillion), which is UAH 34.2 billion (88 and 43 billion rubles) more than this year.

Costs for 2020 provided in the amount of 1,170 trillion UAH (to 3.03 trillion rubles), which is UAH 57.9 bn (149,71 bn) more than in this year’s budget.

Privatization

Forecast of state budget financing in 2020 from the proceeds of the privatization of the state property given to a possible 5 billion (13 billion rubles), based on the training objects. As said the Prime Minister, it is planned “to change the leadership of the state property Fund”. And the new leadership must be within two weeks to submit their predictions about privatization.

It is worth Recalling that the state budget for 2019 envisaged privatization receipts at UAH 17 bn (RUB 44 billion), but the implementation of this income has been extremely low due to blocked competitions of “big privatization”. In 2018 instead of the planned UAH 21.3 billion (55,1 billion rubles) from privatization to the state budget received only revenues from small privatization in amount of 202.9 million UAH (525,4 million roubles).

The priority is defense

Spending on national security and defence in the draft budget are 245,8 billion UAH (636,59 bn). The government planned to increase spending on national security and defense 33.8 billion (87,54 bn), which is 16.1% more than was allocated in 2019. Thus, defense spending reached 5.4% of GDP.

Total health expenditure $ 108 billion (279,7 bn) is 9.8 billion (of 25.38 billion rubles) more than in 2019.

There is nothing particularly enjoy. As a percentage of GDP is less than the budget for the current year, — does not hold up to 3.5%. And this despite the fact that, on the recommendation of the world health organization States should direct to health care a minimum of 5% of GDP. Medicine in Ukraine in contrast to the defense re-financed by a residual principle.

On education it is planned to allocate UAH 136.4 billion (353,26 bn), which is 7.7 billion UAH (19,94 bn) more than this year. The first project involves the development expenditure of higher education institutions in the amount of about UAH 300 million (776,97 million rubles). Development expenditure of culture and information sector is UAH 8.6 bn (22,27 bn).

Ah, the road!

The development of road infrastructure it is planned to send a record 74.4 billion UAH (192,69 bn). Including the State road Fund is expected to amount to UAH 69.7 billion (180.5 billion rubles), which will be used for the development of the network, the maintenance of state roads, construction, reconstruction, etc.

“Despite all the promises to allocate for repair of roads in 2020 be about $ 150 billion, the draft budget includes Road Fund in a much more fast amount — only 69 billion, of which capital repairs of roads of the state value may be given not more than 30 billion hryvnia. The remaining funds to repay debts to IFIs and grants to repair and maintenance of local and municipal roads. The government lied to us?” — said the expert in the field of transport Alexander Kava.

Debts

Goal of debt policy is to provide a decrease in the ratio of public debt to GDP to the level of 46.7% by the end of 2020.

“One of the ways of implementation of such tasks is the gradual reduction of state budget deficit (to 2.09% of GDP in 2020)”, — stated in the Ministry of Finance.

Payments on the national debt in 2020 will be about 438,1 billion (1.1 trillion rubles), of which public debt service — 145,2 billion (376 billion RUB); the repayment of public debt — 292,9 billion hryvnia (758,6 bn).

The government approved the draft budget, which includes the GDP growth at 3.3% instead of the promised Prime Minister 5%. According to the economist Alexei Kusch, it’s a cheap game to internal and external customers, in fact, prerequisites for growth there.

“In fact, already laid the preconditions for growth and for a substantial discount domestic assets, including land. “Give me control of a nation’s money and I care not who is there to set the laws” — this phrase mistakenly attributed to one of the Rothschilds. Although this is most likely incorrect paraphrase of the inaugural address of U.S. President James Abram Garfield: “Whoever controls the money of the country is absolute master of all industry and Commerce”. In relation to us is true and the first and second statement”, — says Alexei Kusch.

Social sphere

The minimum salary will be UAH 4723 (12 RUB. 232).

In addition, the government will increase the subsistence level only for 160 UAH (414 RUB.), but wants 2400 (6216 RUB).
“The Cabinet of Ministers to take decisive steps to approaching in 2020, the size of a living wage to its real value, which can be calculated approximately 4251 of the hryvnia, with a corresponding adjustment of the size of the subsistence minimum for basic social and demographic groups of population”, — stated in the text of the bill.

Financing of Pension Fund of Ukraine from the state budget next year will reach a record 172,6 billion (447 billion RUB). And as missing funds are unlikely to be borrowed “from the air”, the government is likely to “scatter” the sum of all working Ukrainians in the form of new taxes and fees.

How rational will the spending budget, can be judged from the fact that the government intends to significantly increase the budget of the controversial Institute of national remembrance — from 105 to 130 million UAH (336 million roubles).Andrey Anoshin

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