Tuesday03 December 2024
kriminal-tv.in.ua

The largest state budget in the history of independent Ukraine: key figures.

On November 19, the Verkhovna Rada approved the draft state budget for 2025. The country's main financial document received support from 257 members of parliament, while 35 voted against it, 12 abstained, and 21 did not cast their votes.
Самый крупный государственный бюджет за всю историю независимой Украины: ключевые цифры.
Самый большой госбюджет в истории независимой Украины: главные цифры

The budget revenues are projected at 2.3 trillion hryvnias (general fund — 2.05 trillion) — this excludes grants and international aid, but includes the tax increases this year, which are expected to yield 141 billion hryvnias in 2025. The tax reform law still awaits the signature of Volodymyr Zelensky. The International Monetary Fund is anticipating the signing of this law as part of the cooperation program.

The state budget deficit is expected to reach 1.64 trillion hryvnias, which is 19.4% of GDP.

The need for international financing stands at 38.4 billion dollars.

The budget for 2025 is planned based on the following economic indicators:

  • GDP growth at 2.7%;
  • consumer price inflation at 9.5%;
  • average exchange rate of the hryvnia to the dollar at 45;
  • growth of exports of goods and services at 7%;
  • import growth at 3.7%.

Unemployment is expected to decrease from 18.2% to 17.7% — primarily due to more active employment of women and internally displaced persons.

The minimum wage will remain unchanged at 8,000 hryvnias per month. However, the average salary in 2025 is projected to rise from 20,600 hryvnias to 24,400 hryvnias. It is important to note that this refers to the average salary across the country — including both the public and private sectors, where funds are not sourced from the state budget but from company or organizational revenues.

The subsistence minimum for able-bodied individuals is set at 3,028 hryvnias per month, while for those unable to work, it is 2,361 hryvnias.

64% of the personal income tax remains in communities, while the remainder is directed to the general fund of the state budget. Local budget resources are expected to increase by 15% next year — reaching 327.7 billion hryvnias.

As with this year, the main focus of the state budget in 2025 will be the defense of the country against Russian aggression. A total of 2.23 trillion hryvnias is allocated for this purpose, which is 47.6 billion more than this year. This means that nearly all collected taxes and fees will be directed to financing the Defense Forces.

Overall, this expenditure item accounts for 26.3% of GDP, whereas in NATO countries, defense spending is set at 2% of GDP. Before the full-scale war, Ukraine's defense expenditures were around 5-6% of GDP.

Of this defense spending, 1.16 trillion hryvnias will form the salary fund for military personnel, while 739 billion hryvnias will be allocated for armaments and equipment.

The Ministry of Strategic Industries will receive 55.1 billion hryvnias, which includes investments in Ukrainian arms production — research, new developments, and production expansion.

For the purchase of drones next year, 46.9 billion hryvnias will be allocated, which is an increase of 3.6 billion.

The government has earmarked 224.2 billion hryvnias for economic recovery next year, while the recovery strategy, which spans several years, involves 787 projects totaling 2.6 trillion hryvnias, which is comparable to annual defense expenditures.

Social needs for citizens will be financed at the level of 420.9 billion hryvnias, and pensions will be indexed starting March 1. Support for war veterans will amount to 10.5 billion hryvnias.

The head of the budget committee of the Rada, Roksolana Pidlasa, in her arguments in favor of the current version of the state budget noted: “The government is finally taking the bull by the horns and attempting to resolve the issue of excessive pensions awarded to privileged pensioners through court rulings (currently, the state’s debt stands at 73 billion hryvnias), ‘new’ Chernobyl victims in the exclusion zone, and several other distortions in the social sphere that create enormous injustice.”

For educational needs, the state budget will allocate 198.9 billion hryvnias, including 28 billion for grants for higher education. Teacher salaries will require a total of 103.2 billion hryvnias, and 12 billion will be allocated for additional payments, so that from January 1, every teacher receives a monthly bonus of 1,000 hryvnias “net,” and from September 1 — 2,000 hryvnias.

Additionally, before the vote on the budget in the Verkhovna Rada, President Volodymyr Zelensky stated that starting next year, all schoolchildren in Ukraine will have the opportunity to receive free meals. The promotion of the school meal reform is being spearheaded by the president's wife — Olena Zelenska. Currently, the right to free meals from the state is granted to students in grades 1-4.

Funding for science is set at 14.5 billion hryvnias.

Healthcare will receive 217 billion hryvnias, with many repairs to medical institutions budgeted under the economic recovery and humanitarian aid expenditures.

Government cultural and media initiatives will have access to 10.3 billion hryvnias, including 1.5 billion for a telethon.

The state program for subsidized financing “5-7-9” will be funded next year at 18 billion hryvnias, which is significantly less than in 2024. This year, such loans amounted to 80.4 billion hryvnias. Throughout the entire full-scale war, this sum totals 257.7 billion hryvnias.

Grants for businesses will be allocated 1.4 billion hryvnias, and the Innovation Development Fund will receive 3 billion hryvnias. This year, government plans to assist businesses amounted to 40 billion hryvnias.

For the state program of affordable mortgages “єOselya,” 9.4 billion hryvnias have been earmarked.

Furthermore, the president announced the creation of a Ministry of Unity of Ukraine, although funding for this idea still needs to be secured — 150 million hryvnias have been allocated for the Agency of Unity of Ukrainians.

The wage fund will also increase:

  • Verkhovna Rada — by 26.6%.
  • Office of the President — by 11.2%.
  • Cabinet of Ministers — by 19.7%.
  • National Securities Commission — by 49.6%.
  • Courts — by 9.3%.
  • Tax Service — by 39.3%.
  • Customs — by 15.4%.

This is despite the fact that, for example, the average salary of the leadership of the National Commission for Regulation of Energy and Utilities is currently 288.4 thousand hryvnias per month, the National Securities Commission — 236.4 thousand hryvnias, and the Accounting Chamber — 205 thousand hryvnias.