Ministry of Finance of Ukraine

The Ministry of Finance is continuing its dialog with business on tax changes to fill the budget. Proposals for an advance payment of the corporate income tax and other measures to secure additional UAH 500 billion for defense are being discussed.

Ukrainian businesses and individuals increased their investments in government bonds by UAH 16 billion in July. The Ministry of Finance raised UAH 38 billion from the issue of domestic government bonds, of which UAH 35.5 billion were military bonds to finance the needs of the state.

In July 2024, the general fund of the state budget received UAH 118. 2 billion. Personal income tax and military duty amounted to UAH 19.9 billion, accounting for every sixth hryvnia of budget revenues.

The Cabinet of Ministers has adopted a resolution allowing the movement of military goods through all open checkpoints. This will simplify logistics and help avoid complications in the supply of military goods.

Within a month, Ukrainian farmers submitted 100 applications for compensation for the demining of agricultural land. Over the year, more than 30 thousand square kilometers of potentially mined areas were returned to use.

The Minister of Finance of Ukraine has signed an agreement on a $3. 9 billion grant from the United States. The funds will be used to pay salaries to teachers, employees of the State Emergency Service, government agencies, and social benefits.

Finance Minister Serhiy Marchenko said that Ukraine's budget deficit has increased to UAH 500 billion ($12 billion). There is a particular lack of funds for the army, and this amount does not satisfy the military.

The Ministry of Economy of Ukraine warns of the negative consequences of a VAT increase for all citizens. Instead, it is proposed to impose a military duty on goods that are not essential.

Finance Minister Sergii Marchenko said that the estimated resources for the defense and security sector in 2025 will exceed UAH 2 trillion. The budget declaration for 2025-2027 has already been submitted to the Parliament.

Finance Minister Sergiy Marchenko announces a downgrade of Ukraine's GDP growth forecast from 4. 6% to 3.5% due to Russian attacks on the energy sector. The government plans to solve the problem by diversifying the energy grid and rebuilding infrastructure.

In June, spending on security and defense reached UAH 155. 6 billion. In January-June 2024, UAH 888.4 billion was spent on this sector, which is 57.5% of all expenditures of the general fund of the state budget.

The Verkhovna Rada has approved in the first reading a draft law on the restoration of medium-term budget planning for local communities. This will allow forecasting budgets for 3 years ahead and expand funding opportunities.

Economist Oleksandr Okhrimenko believes that the volume of lending to the population of Ukraine should increase significantly to bring it closer to European standards. Currently, Ukraine ranks last in Europe in terms of the ratio of loans to households to GDP.

The Minister of Finance of Ukraine informed the Chancellor of the Exchequer of the Exchequer of the United Kingdom about the need to finance Ukraine's state budget deficit in 2025, and the UK assured its continued support for Ukraine.

This year, Ukraine has already received $16 billion in external financing for the state budget, and another $22 billion is expected by the end of the year, for a total of $42. 5 billion in assistance from international partners.

Shmyhal held the first meeting of the Steering Board for the Coordination of Central Executive Authorities to support Ukraine's participation in the Multi-Donor Coordination Platform. According to him, the country already has access to funding under the EU's Ukraine Facility program, so we need to form a single list of projects as soon as possible.

The National Bank of Ukraine has set the official hryvnia exchange rate at 40. 7146 UAH/USD, strengthening the hryvnia by 5 kopecks against the dollar.

Prime Minister Denys Shmyhal instructed the ministries to ensure uninterrupted power supply to military formations in the frontline regions, resolve water supply issues, prepare for winter, and develop mechanisms for distributing humanitarian aid in the form of liquefied gas for the needs of household consumers.

The revenues of the general fund of the state budget increased by 5% in the first half of 2024, and the potential for revenues and financing of the security and defense sector is growing, the Minister of Finance of Ukraine has announced.

Ukraine expects to receive the first tranche of the approved $7. 8 billion budget support package from the United States in the near future.

The suspension of russia's membership in the Financial Action Task Force on Money Laundering (FATF) remains in place, but it has not been blacklisted once again, despite Ukraine's calls for more decisive action due to russia's financial ties to North Korea, which violate UN resolutions.

At the beginning of June 2024, the state and state-guaranteed debt of Ukraine reached UAH 6. 1 trillion, or almost майже 151 billion.

International partners have assured Ukraine of further financial support for the implementation of the 2024 budget, while the EU is expected to provide the largest assistance in the amount of 16 billion euros, provided that Ukraine fulfills its obligations under the financing plan for Ukraine.

Russia's deepening ties with sanctioned states such as North Korea and Iran, including military cooperation and circumvention of financial sanctions, prompted Ukraine to ask the FATF to blacklist Russia at its June 23 plenary meeting.

Ukraine needs an additional $9. 5 billion this year to finance its priority recovery needs.

Ukraine is calling on international bondholders to agree to a debt reduction of more than $20 billion, after previous talks failed to produce a deal.

The World Bank will provide Ukraine with more than $100 million in grants to repair housing damaged by Russian shelling and restore energy services, including district heating in Kharkiv.

Ukraine and Germany signed a declaration on strengthening cooperation in the field of entrepreneurship support.

The Development Bank of the Council of Europe will provide Ukraine with a loan of 100 million euros for the program "Nome. Compensation for destroyed housing" is aimed at supporting citizens affected by the full-scale war.

According to Prime Minister Denys Shmyhal, Ukraine needs annual investments of 1 10-30 billion over the next 10 years.