Saturday14 December 2024
lifeukr.net

The Rada has approved the 2025 budget in its entirety.

Record expenditures reached 3.94 trillion UAH, with defense spending accounting for 2.22 trillion UAH.
Рада утвердила в цілому бюджет на 2025 рік.

The Verkhovna Rada has adopted the State Budget for 2025 in its entirety. A total of 257 deputies voted in favor.

Narodny Deputy Yaroslav Zheleznyak reported this news.

“The record expenditures are set at 3.94 trillion UAH, with defense spending amounting to 2.22 trillion UAH,” the deputy noted.

Moreover, revenue has been determined at 2.3 trillion UAH (including 141 billion UAH from tax bill 11416d).

“We are also expecting external financing of $38.4 billion next year,” Zheleznyak added.

As stated by Prime Minister Denys Shmyhal, expenditures for education will reach nearly 199 billion UAH, while healthcare will receive 217 billion UAH. Significant modernization and development projects are planned in both sectors. A total of 10.7 billion UAH is allocated for updating medical facilities, purchasing modern equipment, and establishing rehabilitation centers. Additionally, 17.5 billion UAH has been earmarked for the modernization of educational institutions and the arrangement of shelters.

“Support for citizens is the second priority of this budget. In March, we plan to index pensions. Overall, nearly 421 billion UAH is allocated for social assistance programs,” he added.

The Budget Committee earlier proposed:

  1. $2 billion (90 billion UAH) in loan funds will come to the state budget from the United Kingdom solely for covering military expenditures, specifically for the purchase of weapons. These funds are reflected in the special fund for external borrowings and the expenditures of the Ministry of Defense.
  2. 4% of personal income tax (excluding military tax) will remain in local communities (resulting in a total of 64% for communities) to cover utility services and energy carriers, thus eliminating the subsidy to regional budgets for covering tariff differences amounting to 12.2 billion UAH.
  3. Frontline communities are allowed NOT to transfer the reverse to the state budget (a total of 593 million UAH).
  4. An additional 128 million UAH for "Ukrzaliznytsia" to co-finance a European project for the development of railway infrastructure (specifically, railway tracks). Co-financing is a mandatory condition for receiving European funds.
  5. Plus 277.1 million UAH for the National Academy of Sciences, including for research in the military sector.
  6. The possibility for political parties to purchase military government bonds has been excluded (Article 49 of the budget).
  7. The obligation for hospitals to keep funds in treasury accounts has been removed (Clause 28 of the final provisions).

It is worth noting that during the second reading, budget expenditures were increased by 50 billion UAH, of which:

  • 24 billion UAH is allocated for education – 12 billion UAH each for teacher bonuses and investment projects in the education sector;
  • 6.3 billion UAH – for healthcare;
  • 5 billion UAH – for veteran support.
  • The road fund for 2025 will not be funded, but 12.6 billion UAH has been allocated in the state budget project for repairing sections vital for defense and the functioning of the country's economy.

At the same time, as previously reported by the Ministry of Finance, revenues that were previously directed to a special fund amounting to 43.2 billion UAH for financing the State Road Fund are now fully transferred to the general fund of the budget.

The ministry clarified that an additional 1 billion UAH has been allocated for the development of armaments and military equipment for the Ministry of Defense and GUR MO. Meanwhile, the funding for the General Prosecutor's Office has been cut by 1.2 billion UAH.

500 million UAH is allocated for supporting the defense industry, specifically aimed at reducing loan costs for enterprises. An additional 646 million UAH has been earmarked for the Ministry of Health, including 500 million UAH for reimbursing medications for treating cardiovascular and neurological diseases.

The Ministry of Culture and Strategic Communications has received an additional 488.4 million UAH, of which 200 million UAH is directed toward strategic communication projects and promoting a positive image of Ukraine abroad. Additionally, 150 million UAH is specifically allocated to support Ukrainians abroad and facilitate their return to Ukraine through the activities of the Agency for the Unity of Ukrainians under the Ministry of Economy.

Expenditures for the Ministry of Social Policy have been increased by over 1.4 billion UAH, including:

  • 1 billion UAH – for assistance to internally displaced persons;
  • 102.2 million UAH – for cloud resource payment for digital technologies;
  • 328.6 million UAH – for daytime care services for children with disabilities.

An additional 1 billion UAH in the state budget project is allocated for supporting livestock and processing agricultural products.

Another 1 billion UAH is designated for the implementation of investment projects through the State Fund for Regional Development and restoration work in Kharkiv.

To provide compensation for destroyed housing, 3 billion UAH is allocated, while for damaged property, 1 billion UAH is set aside.

The budget also takes into account the decision of the Strategic Investment Council to allocate 36.4 billion UAH for the implementation of priority areas of public investment, including:

  • 11.8 billion UAH – for education;
  • 8 billion UAH – for water supply;
  • 6 billion UAH – for social protection;
  • 5.6 billion UAH – for healthcare;
  • 4.4 billion UAH – for transportation;
  • 502 million UAH – for public administration;
  • 70 million UAH – for projects in the culture sector, including the construction of shelters.

Expenditures from the general fund of the state budget before the second reading amount to 3.94 trillion UAH.

Social standards: the minimum wage and the subsistence minimum remain at the level of December 2024. The budget also provides for a new model for managing public investment projects with a planned allocation of 25 billion UAH for 2025.

The projected financing of the state budget for 2025 anticipates a reduction in the budget deficit to 19.4% of GDP (compared to 20.6% in the current law on the state budget for 2024).

Background. Earlier, Mind reported that the VR Committee approved the budget-2025 project for the second reading. During the committee meeting, only two amendments were supported: not to transfer hospitals to treasury servicing and to exclude the provision regarding political parties’ ability to invest in government bonds.