11:50 22.06.2017

Cabinet of Ministers proposes increasing revenue, expenses of 2017 national budget by UAH 26 bln

2 min read
Cabinet of Ministers proposes increasing revenue, expenses of 2017 national budget by UAH 26 bln

Ukraine's Cabinet of Ministers has proposed to increase expenses and revenues of Ukraine's national budget in 2017 by UAH 26 billion or some 3.5%, including by UAH 25 billion for the general fund. The relevant bill has been submitted to the Verkhovna Rada on Wednesday.

According to the bill, it is expected that the planned revenues from taxes and fees will be increased by UAH 7.1 billion for individuals' income tax, by UAH 33 billion for VAT imposed on imported goods.

The national budget 2017 will receive an additional UAH 4.6 billion at the expense of larger than expected dividends paid by Naftogaz Ukrainy and UAH 1.5 billion from the oil and gas condensate royalties, which should grow thanks to the increase in the forecast average annual price of a barrel of Brent crude oil to $ 53 by the Economic Development and Trade Ministry.

At the same time, it is expected that domestic VAT will be reduced by UAH 10.3 billion, taking into account the refunding of this tax, and by UAH 3.4 billion due to the reduction of the natural gas royalties over the termination of joint operations agreements.

The government said in the explanatory note to the document that according to the revised macroeconomic forecast, the estimated nominal GDP in 2017 reviewed upwards to UAH 2.846 trillion from UAH 2.585 trillion.

Taking into account these updates, the revenues of the 2017 national budget are proposed to be set at UAH 757 billion, expenditures - UAH 827.14 billion, including UAH 698.74 billion and UAH 764.7 billion respectively for the general fund, while maintaining the upper limit of the deficit at UAH 77.65 billion.

In addition, due to the additional capitalization of PrivatBank (Kyiv) late 2016 by UAH 107 billion, the Cabinet of Ministers points out the need to raise the limit of the state debt for the end of 2017 to UAH 1.824 trillion from UAH 1.717 trillion.

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