Today, on December 2, the Verkhovna Rada passed the law on the state budget for 2022 (bill No. 6000) in the second reading. Earlier, at 03:10 am, the VR’s Committee on Budget recommended passing this law.
During the preparation for the second reading, the draft budget has changed significantly. The Cabinet of Ministers increased its revenues by 55 billion UAH—up to 1,322 billion UAH. The reason for the increase in the revenue forecast is the revision of the forecasted average annual prices for raw materials, in particular for gas and oil, as well as world prices for ore.
The expenditure increased by 56 billion UAH—up to 1,498 billion UAH.
The maximum budget deficit was increased by 792 million UAH—to 188.8 billion UAH (3.5% of GDP).
At what expense the planned budget revenues increased
In general, the plan for tax revenues increased by 64 billion UAH—up to 1,167 billion UAH. This was mainly due to increasing:
- corporate income tax—by 21 billion UAH, to 158 billion UAH;
- income from rental payments—up to 71.25 billion UAH. In particular, revenues from rent for gas and oil were increased by 22.7 billion UAH. At the same time, income from rent on ore (conditionally—"from Akhmetov") increased only by 0.24 billion UAH—to 4.7 billion UAH;
- VAT on goods and services produced in Ukraine—by 3 billion UAH, up to 180 billion UAH;
- VAT on imports—by 6.5 billion UAH, up to 405 billion UAH;
- excise tax on imported goods—by 2 billion UAH;
- environmental tax—by 1.8 billion UAH, to 5.4 billion UAH.
The plan for personal income tax was revised downwards—by almost 11 billion UAH.
Also, revenues from the NBU in 2022 were reduced—from 24.4 billion UAH to 13.6 billion UAH. This was done "at the request of the National Bank that submitted the relevant calculations."
The level of the maximum amount of the public debt remained at the same level—2,725 billion UAH. At the same time, the maximum amount of state guarantees was reduced to 3% of the income of the state budget general fund (Ukraine assumed the corresponding obligation in a memorandum with the IMF). It will not be 50 billion UAH, but for UAH 40 billion.
In 2022, 64% of revenue from the personal income tax (PIT) that is paid in the respective territories will go to the fund of local budgets (to compensate them for the costs of maintaining stable heating tariffs for the population).
Who got additional money from state budget-2022
The following departments got the most significant surplus:
- Ministry of Infrastructure got an additional 12.6 billion UAH (including 1 billion for the national air carrier);
- Ministry of Economy—5 billion UAH;
- Ministry of Health—2.85 billion UAH;
- Ukravtodor (State Agency of Motor Roads of Ukraine)—2.5 billion UAH;
- Ministry of Defense—2.5 billion UAH;
- Ministry of Culture—3.87 billion UAH;
- Ministry of Ministry for Communities and Territories Development—1.4 billion UAH;
- Ministry of Internal Affairs—1 billion UAH;
- Cabinet of Ministers—2.24 billion UAH (including another 1 billion obtained by the State Film Agency);
- Verkhovna Rada—83.9 million;
- State Management of Affairs—23.7 million UAH (including expenses for the Office of the President increased by 12.5 million UAH);
- NSDC—84 million UAH;
- SSU—100 million UAH.
6 billion UAH were added for social and economic development and 9 billion UAH—for infrastructure subventions to the regions (this is important for the MPs elected by the first-past-the-post system).
Funding for the project Presidential University was increased from 100 million UAH to 500 million UAH.
The budget of the State Road Fund was increased by 4.2 billion UAH—up to 86 billion UAH. The funds will be allocated for the following programs:
- development of the national road network—42 billion UAH;
- subvention to local budgets for the construction, reconstruction, and repair of local roads—24.6 billion UAH;
- fulfillment of debt obligations on borrowings—15.8 billion UAH;
- financing of road safety—2.4 billion UAH.
Financing of the nationwide target social program Drinking Water of Ukraine in 2022 (it is intended for 2022–2026) will amount to 1 billion UAH. The funds will be used to provide settlements with high-quality centralized water supply.
Another 30 billion UAH obtained from the issue of government bonds will be poured into the capital of the company Ukrfinzhytlo. The explanatory note says that this will allow "to continue the implementation of financial and credit mechanisms for providing citizens with housing with the participation of the company and will also provide an opportunity to carry out thermal modernization of the buildings and premises."
As Serhiy Marchenko, the Minister of Finance, notes, the state budget- 2022 includes 3 billion UAH for a special program that provides for the allocation of 1,000 UAH to the vaccinated citizens.
How funds were reallocated:
- 3.2 billion UAH was taken from the program Rolling Stock Renewal and Railway Infrastructure Modernization and given to the road safety (2.5 billion UAH) and to the shipping locks (0.7 billion UAH). Half of the special fund formed from fines for violation of the traffic rules will be allocated for the renovation of the railway transport;
- potential overfulfillment of the revenues from excise taxes is proposed to be given to the Ministry of Internal Affairs;
- expenditures on the pilot project on transplant will be increased by 150 million UAH by reducing the expenditures on treating Ukrainian citizens abroad;
- expenditures under the budget program Development of Sports medicine" will be increased by 15.9 million UAH due to a reduction in expenditures on the development of sports for persons with disabilities and their physical culture and sports rehabilitation by 5.9 million UAH, a decrease in expenditures on the program for the development of physical culture, the sport of setting records, and reserve sports for 10 million UAH.
- expenditures on purchasing of kits for PCR studies will be increased by 207.8 million UAH due to a reduction in the amount of loans provided under the budget program Reconstruction of Sewage Treatment Facilities and Construction of a Technological Line for Treatment and Disposal of Sediments of Bortnytska Aeration Station."
"The trend of the recent years that will determine the prospects for 2022 is a significant growth of the state in the economy," Marchenko noted, presenting the draft state budget for the second reading in the Parliament.