The leadership of the Ministry of Finance and the NBU have started discussing the sixth review of the EFF program with IMF experts. Ukraine needs to fulfill four structural benchmarks to receive the next tranche in December.
The draft budget for 2025 does not provide for an increase in the minimum wage and pensions. Social payments will remain at the level of 2024, with only annual pension indexation.
The World Bank will provide Ukraine with a grant of $1. 35 billion and €10.8 million under the PEACE in Ukraine project. The funds will be used for social and humanitarian needs of the state budget.
Since the beginning of 2024, the state budget has received UAH 497. 8 billion from the placement of domestic government bonds at auctions. In October, UAH 106.9 billion was raised, of which UAH 82.8 billion were military bonds.
The Verkhovna Rada has supported amendment No. 155, which cancels a 37% increase in prosecutors' salaries in the draft State Budget 2025. This decision was voted for by 242 MPs.
The Verkhovna Rada Budget Committee has supported the draft State Budget for 2025 for the first reading. Among the changes are the exclusion of the Road Fund and the abolition of cashback funds, and MPs submitted 2098 amendments.
The Accounting Chamber conducted the first historical audit of the Pension Fund according to international standards. The audit revealed problems with the identification of pensioners and an additional burden on the budget due to increased payments.
The IMF has optimized the schedule of tranches for Ukraine for 2025, increasing funding from $1. 8 billion to $2.7 billion. Over the 19 months of the EFF program, Ukraine has successfully completed five reviews, attracting $8.7 billion.
The updated IMF memorandum contains no commitments to raise energy tariffs in Ukraine. The Ministry of Finance reports that various options are being considered to support the country's energy stability.
The IMF has added 11 new structural beacons for Ukraine, bringing the total to 48. Ukraine expects to receive a $1.1 billion tranche to cover its budget deficit soon.
MP Yuzhanina proposed to reduce spending on prosecutors' salaries by UAH 2. 7 billion in the draft State Budget 2025. The working group supported the proposal, but its further fate is unknown.
ELEKS has won a tender to develop an electronic system for the circulation of alcohol and tobacco, eAcces, in Ukraine. The system will replace paper excise stamps with electronic ones with Datamatrix codes and is scheduled to be launched in 2026.
Ukraine received CAD 400 million in concessional financing from Canada for 10 years at 1. 5% per annum. The funds have already been transferred to the state budget and will be used for priority expenditures.
The Minister of Finance of Ukraine Sergii Marchenko discussed the G7 mechanism for increasing Ukraine's budget at the expense of frozen Russian assets. He also spoke about external financing plans for 2025.
Only 15 MPs remained in the Verkhovna Rada during the discussion of amendments to the law on tax increases. The draft law envisages an increase in the military tax to 5% and in the bank profit tax to 50%.
More than UAH 152 billion in revenues are expected from the draft law on tax increases. The main revenues will come from the bank tax and the tax on profits of financial companies, said the head of the Verkhovna Rada Budget Committee.
Ukraine has made the first international automatic exchange of information on financial accounts under the CRS standard. This will help fight tax evasion more effectively and contribute to the country's economic stability.
As of October 1, 2024, 30% of Ukraine's state budget financing was provided by domestic government bonds, which amounted to USD 10. 1 billion. The total amount of budget financing amounted to $34.6 billion.
In January-September 2024, the state budget of Ukraine received UAH 2. 17 trillion in revenues and expenditures amounted to UAH 2.97 trillion. Expenditures from the general fund exceeded revenues by UAH 800.5 billion.
The decree provides for the allocation of at least 26. 3% of GDP to the security and defense sector in 2025. Priority areas of funding have been identified, including the development of the Armed Forces and cybersecurity.
Prime Minister Shmyhal has ordered legislative changes to be developed to lift restrictions on financing long-term military contracts. This will allow for stable financing of the production of weapons and equipment, in particular under the Weapons of Victory program.
The Ministry of Finance predicts that Ukraine's public debt will be reduced to 97% of GDP in 2025. Minister Sergiy Marchenko noted that after the restructuring, the debt is not a critical issue for the country.
Sergii Marchenko assured that no interruptions in social payments are expected in 2025. The Minister emphasized that the social sphere is a priority of the state budget.
MP Lesia Zaburanna spoke about the tools to cover the budget deficit of UAH 500 billion. Among them are domestic borrowing through government bonds and public debt restructuring.
The Government has reallocated UAH 1. 9 million to provide employees of the Ministry of Finance with technical means of access to the Internet. The funds have been allocated within the budget allocations for 2024 for the smooth operation of the Ministry.
Andriy Pyshnyi called for the re-taxation of banks to be assessed in terms of efficiency and risks. The NBU hopes that banks will make a decisive contribution to financing the deficit without issuing sources.
The NBU has set the official hryvnia exchange rate for September 19: the dollar is UAH 41. 45, the euro is UAH 46.10. On the interbank market, the dollar is trading at UAH 41.48-41.5, and the euro at UAH 46.19-46.20.
The Verkhovna Rada has approved an increase in defense spending by UAH 495. 3 billion in 2024. UAH 274.4 billion will be allocated for payments to defenders and their families, and UAH 76.2 billion for weapons and equipment.
About 1. 2 million internally displaced persons receive financial assistance from the state based on family income. The payment for IDPs will be valid for 6 months and will remain as a crisis support tool for the population.
The draft law on basic social assistance will make it easier to receive payments through Diia. The Deputy Minister of Social Policy said that the document will soon be submitted to the Verkhovna Rada.
