PM Shmyhal: Draft state budget for 2021 is optimal

PM Shmyhal: Draft state budget for 2021 is optimal

The draft state budget of Ukraine for 2021 takes into account the needs of the people and is likely to be implemented.

"The draft law on the state budget for 2021 is an optimal budget, an optimized document that takes into account the needs of people as much as possible and is likely to be implemented," Prime Minister of Ukraine Denys Shmyhal said at the Cabinet’s meeting, an Ukrinform correspondent reports.

He reminded that the budget included increased expenditures on medicine, education, social protection, and road construction.

"There is a myth about an unaffordable budget deficit. Due to the pandemic, almost every country has increased the deficit. This was done to avoid raising taxes and to support people and businesses. We envisage a 6% budget deficit for the next year. The Ministry of Finance has carefully calculated the ways to cover the deficit," the Prime Minister stressed.

Shmyhal also expects that a twofold increase in the minimum wage set for 2021 will revive the economic activity in Ukraine.

As reported, the Cabinet of Ministers published the main indicators of the draft state budget for 2021 on the Government portal on September 14. GDP growth is expected at 4.6%, consumer inflation - at 7.3%.

The draft state budget for 2021 provides for a reduction in the state debt by 3.4% - down to 64.6% of GDP, Finance Minister Serhiy Marchenko said.


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