Coronavirus 2020 – Zelensky signed a change to the state budget

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President approved emergency budget
Photo: Vladimir Zelensky (Vitaliy Nosach / RBC-Ukraine)

More than 64 billion hryvnia Coronavirus Foundation has appeared in Ukraine

President Vladimir Zelensky approved changes in the state budget 2020 in connection with the coronavirus pandemic. It is reported by RBC-Ukraine with reference to Office of the president.

Income and expenses

State budget revenues were reduced by 11% to 975.8 billion hryvnias, expenditures increased by 7% (82.4 billion) to 1.266 trillion hryvnias. At the same time, revenues from tax collections will be reduced by 143 billion hryvnias due to lower domestic taxes and VAT on imports.

The expenditure side grew the most due to the article on the establishment of the Fund to Combat COVID-19, which will amount to 64.67 billion hryvnias. The funds from this fund will be used to purchase goods, works and services, including medical ones; additional payments to medical personnel; payments to certain categories of workers that ensure the livelihoods of the population; assistance to elderly Ukrainians and families of medical workers who died from COVID-19; transfer to the Pension Fund and assistance to the Social Insurance Fund.

Deficit

The document provides for an increase in the deficit by more than three times – up to 298.4 billion hryvnias. They plan to repay it through loans in the amount of 296.7 billion hryvnias, as well as privatization proceeds – 0.5 billion hryvnias.

The last figure means the actual abandonment of large-scale privatization in 2020, since the budget for 2020 included revenues from privatization at the level of 12 billion hryvnias.

Medicine

Expenditures on the National Health Service increased by 15.8 billion hryvnias for the purchase of goods, works and services, including under the medical guarantee program.

Pensions

Expenditures of the Pension Fund of Ukraine increased by 29.7 billion hryvnias, since additional payments of 1,000 hryvnias to pensioners whose pensions are less than 5,000 hryvnias are planned for the quarantine period.

The expenses of the Ministry of Social Policy increased by 19.5 billion hryvnias to support Ukrainians who lost their jobs due to quarantine.

Most affected expense items

To finance measures to combat the coronavirus and increase payments, funding for a number of cost items has been reduced. In particular, the cost of incentives and subsidies was reduced by 8.2 billion hryvnias, the Regional Development Fund lost 2.6 billion hryvnias, funding for culture and sports was cut by 2.3 billion hryvnias, subvention to territorial communities by 2.1 billion hryvnias 1.6 billion hryvnias – Energy Efficiency Fund, for 1.55 billion hryvnias – subvention to teachers.

In addition, 1.2 billion hryvnias were taken from the census funds, another 1 billion hryvnias from the funds for local elections and education.

It is worth emphasizing that the costs of the army and the military were not affected, and 72 billion hryvnias remained pledged to the government project “Big Construction”.

Recall, the chairman of the faction, David Arahamia, said that up to 40% of funds will be returned to the state budget Coronavirus Foundation.

As RBC-Ukraine wrote, on April 13, BP adopted as a basis and, as a whole, a revised draft law on 2020 budget changes in connection with the situation with coronavirus.

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