Ministry of Finance of Ukraine

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.

The Verkhovna Rada approved an increase in spending for the Defense Forces by UAH 495. 3 billion. The Ministry of Finance expects support for the amendments to the Tax Code.

The total expenditures of the state budget of Ukraine in January-July 2024 amounted to UAH 1. 8 trillion, which is 10.3% more than last year. Most of the funds were allocated for wages, social security and support for the Armed Forces.

The Ministry of Finance reported $98. 7 billion in direct budget support from donors since February 2022. The funds are allocated for social, humanitarian and priority non-military budget expenditures.

As of the beginning of July 2024, Ukraine's public and guaranteed debt reached UAH 6. 17 trillion or USD 152.2 billion. During the month, the debt increased by UAH 52.71 billion, but its weighted average value has decreased by 10.3% since the beginning of the year.

The Ministry of Finance has held meetings with business representatives to find additional UAH 500 billion for defense in 2024. It is proposed to revise the military duty and excise taxes, which will provide UAH 138.7 billion by the end of 2024.

The National Bank of Ukraine has set the official hryvnia exchange rate at 41. 0381 UAH/USD, strengthening it by 16 kopecks. The euro exchange rate is set at 44.79 UAH/euro, and the dollar is trading at UAH 41.01-41.03 on the interbank market.

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.