On December the 7th the President of Ukraine Petro Poroshenko signed the Law of Ukraine “On the State Budget for 2019”. The Law enters into force on January 1, 2019.
On November 23, the Parliament approved the draft state budget for 2019 in the second reading and in full with 240 votes.
“I want to thank the President, the Chairman of Parliament, the members of Parliament, our colleagues from other ministries as well as my team in the Ministry of Finance for their well-coordinated, diligent and fast work in the course of the preparation of the state budget for the coming year. I hope that the timely completion of all stages of the budgeting process will become a routine for us, when we switch to the mid-term budget planning,” said Minister of Finance Oksana Markarova.
The revenues of the consolidate budget for 2019 are equal to UAH 1,306.6 billion, including revenues for the general fund of the state budget equal to UAH 1,183.7 billion.
The expenses of the consolidated budget and loans to be provided next year are equal to UAH 1,406.3 billion including expenses for the general fund of the state budget amounting UAH 1,261.6 billion.
To ensure the balance and sustainability of the state budget, its maximum allowed deficit will be reduced to 2.28% of the GDP (compared to 2.4% in 2018).
In 2019, the funding will be increased for the following priority areas:
UAH 167.5 billion have been allocated for pensions. The Government has also provided additional UAH 200 million to support orphans and physically challenged children as well as childcare facilities providing family-like childcare. These expenses will total UAH 717.7 million. Starting from January 1, the minimum wage will be increased to UAH 4,173. The living wage in 2019 will grow by 9.4% compared to 2018.
Defence and security
The total expenses in this area will grow by UAH 33.3 billion compared to 2018 and will be equal to UAH 212 billion (5.4% of the GDP).
The total expenses for education (general and special funds of the state budget) are set at UAH 247.2 billion. The education subvention is equal to UAH 69.6 billion. It will be used exclusively for salaries to the teachers of general education institutions (including private ones) as well as vocational and higher education institutions of the Ist and IInd accreditation grades – in the part related to full secondary education.
The total healthcare expenses from the consolidated budget amount UAH 131.7 billion, which is UAH 15.3 billion (13.1%) higher compared to the previous year. They include expenses for the reform of the funding of the healthcare system. UAH 15.2 billion have been allocated for the implementation of the program of the guarantees for primary healthcare services – this is UAH 2 billion higher compared to the current year.
UAH 1 billion have been allocated for the development of the emergency assistance system.
Development of the road infrastructure
The special fund of the state budget contains allocations for the State Road Fund equal to UAH 50.4 billion (out of the total UAH 55.6 billion allocated for the development of roads), which is UAH 17.5 billion higher compared to 2018.