Verkhovna Rada boosts budget expenditures with loans
MOSCOW. July 11 (Interfax) - Ukrainian budget expenditures have grown by another UAH80.98 billion in 2022, including UAH1.5 billion through the program supporting farmers and agribusinesses via the Ukrainian State Fund for Support of Farms, UAH 4 billion for the Affordable Loan 5-7-9% program amid the raised discount rate, and UAH4 billion for the Entrepreneurship Development Fund.
Bill 7523, amending the 2022 budget, passed by 244 votes on Saturday, Ukrainian media outlets said with the reference to the Verkhovna Rada website.
According to the bill, another UAH5.7 billion will be assigned for social support, UAH3.3 billion for housing and public utility subsidies, UAH32.2 billion for payments to internally displaced persons, UAH32.3 billion for payment of pensions, and UAH 16 billion for subventions to local budgets in the recovery of critical infrastructure.
The bill says that the additional expenditures will be financed with UAH4 billion of domestic borrowings, UAH75.43 billion of external borrowings, and a UAH-1.55-billion grant for farmers from the European Union.
The bill allows the provision of government guarantees on loans for the development of railroad transport, and enables Ukravtodor to carry out transactions with government-guaranteed loans with the consent of the Finance Ministry.
The bill increases the 2022 budget revenue to UAH 1,351.93 billion, including UAH 1,210.91 billion revenue of the general fund, while expenditures will grow to UAH2,162.17 billion and UAH 1,939.39 billion, respectively.
From now on, the maximum budget deficit stands at UAH823.49 billion, including UAH725.72 billion in the general fund, while the sovereign debt is capped to UAH3,360.02 billion.
An explanatory note to the bill says that government borrowings will grow by 7.1% to UAH 1,205.8 billion, or 2.1 times larger the original limit.
Participants in the Affordable Loans 5-7-9% program said earlier that the Finance Ministry had stopped reimbursing them for loan interest.
