Ukrainian govt approves draft 2024 budget with record expenditures and deficit

MOSCOW. Sept 15 (Interfax) - The government on Friday approved the draft 2024 state budget with general fund revenues of UAH 1.56 trillion and general fund expenditures of UAH 3.108 trillion, Ukrainian media quoted Prime Minister Denis Shmygal as saying on Telegram.

The budget deficit could be UAH 1.55 trillion or 50% of spending.

"The key emphasis of this draft is the defense and security of our country. We are allocating more than half of all budget resources - UAH 1.685 trillion. This is UAH 113 billion more than this year," he said.

The second priority is the social sphere, budget expenditures for which will amount to UAH 469 billion, which is UAH 25 billion more than this year.

The third priority is medicine and education, for which UAH 202 billion and UAH 179 billion, respectively, will be allocated, UAH 24 billion and UAH 23 billion more than this year.

The fourth priority is to support veterans: expenses under this program will double - from UAH 6.8 billion in 2023 to UAH 14.3 billion in 2024.

"The fifth priority is the restoration of our economy. No tax increases are expected. The government continues preferential lending programs, the grants program, support for Ukrainian startups. We are also launching new programs for industrial parks, investment projects to support Ukrainian manufacturers," he said.

The Ukrainian Finance Ministry said in a press release that the draft envisaged the budget deficit falling to 20.4% of GDP, from 27% in 2023.

"A planned UAH 606.5 billion of public debt will be redeemed, including UAH 421.6 billion of domestic and UAH 184.9 billion external debt, it said.

The parliament adopted a 2023 state budget with a deficit of UAH 1.3 trillion, revenue of UAH 1.28 trillion and spending of UAH 2.57 trillion.