The Country Gets the 2016 Draft Budget from the Ministry of Finance
01 December 2015
On 30 November 2015, the Ukrainian Ministry of Finance published the 2016 Draft State budget of Ukraine. (The document is not complete: It is missing the annexes and additional calculations, which the Minfin is required to submit with the draft budget.)
Key Indicators:
Key Indicators:
- The minimum wage and subsistence level will increased by 12.8% compared to 2015 (subsistence level will increase to UAH 1,330 as of 1 January 2016, UAH 1,399 as of 1 May 2015, and UAH 1,496 as of 1 December 2016; minimum wage will increase to UAH 1,378 as of 1 January 2016, UAH 1,450 as of 1 May 2016, and UAH 1,550 as of 1 December 2015).
- The 2016 ceiling for State guarantees is set at UAH 28.2bn. Also, the Cabinet of Ministers is allowed to build up the stabilization (reserve) energy fund by the amount of up to $500mn in 2016. (The finances, which can be attracted under State guarantees in excess of the amounts stipulated in the ceiling for State guarantees).
- The State budget revenues total UAH 598.0bn increased compared with 2015 at 13.5% (General Fund of UAH 564.0bn, and Special Fund of UAH 33.0bn).
- The State budget expenditures total UAH 673.9bn increased compared with 2015 at 17.7% (General Fund of UAH 638.0bn, Special Fund of UAH 35.0bn).
- The State budget deficit ceiling is planned at UAH 83.7bn (4% of GDP), and the State debt cap at UAH 1.5 trillion (96% of GDP). The draft law authorizes the Cabinet of Ministers of Ukraine to issue additional bonds to be exchanged into additional issues of NAK Naftogaz of Ukraine and banks. The amounts of those issues, however, are not indicated. Said transactions represent a hidden budget deficit and would lead to an increased amount of public debt.
Decentralization:
The budgets of amalgamated territorial communities are determined, which communities will have direct inter-budget relations with the State budget starting in 2016. (Their number and list, however, provided in the budget annex, have not been published).
Restructuring of National Departmental Academies of Sciences:
It is planned to join the National Academy of Agrarian Sciences of Ukraine, National Academy of Medical Sciences of Ukraine, National Academy of Pedagogical Sciences of Ukraine, National Academy of Law Sciences of Ukraine, and National Academy of Arts of Ukraine with the National Academy of Sciences of Ukraine. This will help reduce the number of key spending units of the State budget by six and improve the flexibility and efficiency in managing public funds, i.e., taxpayers' money.
The budgets of amalgamated territorial communities are determined, which communities will have direct inter-budget relations with the State budget starting in 2016. (Their number and list, however, provided in the budget annex, have not been published).
Restructuring of National Departmental Academies of Sciences:
It is planned to join the National Academy of Agrarian Sciences of Ukraine, National Academy of Medical Sciences of Ukraine, National Academy of Pedagogical Sciences of Ukraine, National Academy of Law Sciences of Ukraine, and National Academy of Arts of Ukraine with the National Academy of Sciences of Ukraine. This will help reduce the number of key spending units of the State budget by six and improve the flexibility and efficiency in managing public funds, i.e., taxpayers' money.
Glyanec