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Rada adopted budget-2022 in first reading

Budget 2022: Adopted in first reading. Photo: Pixabay

Budget 2022: Adopted in first reading. Photo: Pixabay

The Verkhovna Rada adopted the draft state budget for 2022 as a basis. Bill No. 6000 was supported by 264 MPs with the required 226 votes.

In its budgetary conclusions, the Parliament recommended that the government, when preparing the bill for the second reading, increased the revenues of the general fund of the state budget for the next year by 6.5 billion UAH by increasing the expected revenues from value added tax (VAT) on imports.

In addition, the Parliament recommended to provide for a subvention from the state local budgets to combat the pandemic and its consequences during the educational process in schools in the amount of 1 billion UAH, as well as financing the program Drinking Water of Ukraine for 2022—2026 in the amount of 1 billion UAH.

MPs propose to provide for another 1.5 billion UAH as a subvention to local communities for purchasing equipment for catering units in schools.

Minister of Finance Serhii Marchenko calls the document "a budget of investments in the future." According to him, the document was thoroughly finalized, numerous discussions of the country's budget were held with the involvement of experts, specialized associations, and international partners. According to Marchenko, the budget is realistic and balanced.

By November 3, the Cabinet of Ministers must submit the draft state budget-2022 to the Verkhovna Rada for the second reading, along with the relevant accompanying documents.

Additionally. Budget revenues for 2022 in the bill submitted to the Verkhovna Rada by the government are determined at the level of 1.277 trillion UAH, which is 161 billion UAH more in comparison with the planned figures of the state budget for 2021. Expenditures are proposed to be set in the amount of 1.465 trillion UAH (+103 billion UAH to the planned figure of the state budget-2021).

At the same time, it is proposed to include the deficit into the state budget in the amount of 3.5% of GDP against 5.5% in the state budget-2021, the Minister adds. The draft state budget-2022 was built, as indicated in the Budget Declaration, based on the forecast of nominal GDP growth to 5.368 trillion UAH, real GDP growth by 3.8%, and the hryvnia-to-dollar exchange rate corridor at the end of the year 28.6—28.7 UAH/$.

Context. Earlier, the Verkhovna Rada withdrew from consideration the bill No. 6062 on amending the Budget Code (needed for adopting the budget-2022) due to the need for its revision.

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