At a meeting on November 2, the government approved the draft law on the state budget of Ukraine for 2024 for the second reading, reducing the need for external financial support to about $41 billion from $42.9 billion, in particular due to the increase in planned revenues as a result of the revision of macro indicators and taking into account other additional revenues.

“The principles and priorities defined in the draft budget presented by the government for consideration by parliament in the first reading were preserved in the second reading. The budget indicators are balanced, but at the same time tense. We continue to actively work to attract the necessary external financing,” Minister of Finance Serhiy Marchenko said.

The department clarified that the revenue side of the draft state budget increased by UAH 22.2 billion compared to the first reading and is provided in the amount of UAH 1.769 trillion, including for the general fund it increased by UAH 22.1 billion.

At the same time, expenses and the provision of loans were increased in the bill for the second reading compared to the first reading by UAH 95.2 billion and amounted to UAH 3.355 trillion, including expenses of the general fund – UAH 3.121 trillion and expenses of the special fund - UAH 234.5 billion.

It is noted that by the second reading, the maximum deficit volume was reduced by UAH 22.1 billion – to UAH 1.572 trillion, which was agreed with the International Monetary Fund.

“When preparing the draft state budget for the second reading, at the proposals of MPs and in agreement with the relevant ministries, a redistribution of funds was carried out within the framework of individual budget programs. In particular, the Ministry of Social Policy, the Ministry of Education and Science, the Ministry of Agrarian Policy,” the Ministry of Finance indicated.

According to the release, the government, when approving the draft state budget for the second reading, improved the inflation forecast for 2024 from 10.8% to 9.7%, and also adjusted the assumption about the average annual exchange rate of the hryvnia next year to UAH 40.7/$1 compared to UAH 41.4/$1.

Such changes are associated with a revision of the macro forecast for 2023. In particular, the GDP growth estimate was improved from 2.8% to 5%, the inflation forecast was reduced from 14.7% to 7.1%, and expectations for the hryvnia exchange rate at the end of the year were reduced to UAH 38.6/$1 from UAH 40.2/$1.