Coronavirus and crisis – State budget 2020 will be rewritten because of coronavirus: deficit and public debt will increase

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The volume of the COVID-19 Fund is proposed to be reduced to 64.7 billion UAH, while the Ministry of Health will receive an additional 15.8 billion UAH, and the Ministry of Social Policy – 10.6 billion UAH.

Illustration REUTERSIllustration REUTERS

The Verkhovna Rada Budget Committee registered in the parliament a revised draft of amendments to the state budget of Ukraine for 2020.

Read alsoThe Ministry of Finance reported how much money it borrowed in the domestic market

According to the project (No. 3279-d), it is proposed to establish state budget revenues in the amount of UAH 975.8 billion, which is UAH 3.2 billion more than in the government bill.

It is proposed that costs be set at 1.266 trillion UAH, which is also 3.2 billion UAH more than in the previous version of the changes.

The maximum deficit will more than triple and amount to 298.4 billion. The government plans to cover it through loans in the amount of 296.7 billion, as well as privatization proceeds in the amount of 0.5 billion.

The maximum amount of public debt was set at 2.387 trillion UAH.

This year the government does not plan to carry out large-scale privatization. Proceeds from privatization decreased by 11.5 billion: from 12 billion in the approved budget to 0.5 billion.

The amount of a part of the National Bank’s profit to be transferred to the budget in comparison with the previous project was increased by 2 billion UAH to 42.7 billion UAH.

The volume of the Fund for the Control of Acute Respiratory Disease COVID-19 in comparison with the government project is proposed to be reduced by 32.4 billion UAH to 64.7 billion UAH.

The funds that were previously proposed to be credited to the fund are now proposed to be divided immediately between the Ministry of Health, which was additionally provided 15.8 billion UAH for additional payments to medical workers, and the Ministry of Social Policy, which will receive an additional 10.6 billion UAH for payment of pension benefits and assistance to the population.

The Ministry of Finance is also invited to grant the right to implement agreements with state derivatives through the implementation of over-planned government borrowing to reduce the risks associated with the likelihood of increased costs of state derivatives in the future.

In addition, the draft law proposes to delay the submission of declarations for the last year by persons authorized to perform the functions of the state or local government until the last day of the month following the month in which quarantine is canceled.

Also in the package of documents is the conclusion of the relevant committee, which recommends that the Verkhovna Rada adopt the bill as a basis and as a whole as a law.

As UNIAN reported, the Verkhovna Rada will consider draft amendments to the state budget 2020 at an extraordinary meeting on April 13.

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