Almost 90% of all taxes, fees in 2023 to cover army, security expenditures - PM

Almost 90% of all taxes, fees in 2023 to cover army, security expenditures - PM

The Cabinet of Ministers will direct almost 90% of all taxes and fees paid by citizens and businesses next year to the Army and security needs. The budget deficit is planned to be closed thanks to the support of international partners.

Prime Minister Denys Shmyhal announced this on Facebook, summarizing the Government's work for the past week, Ukrinform reports.

"Almost 90% of all taxes and fees paid by citizens and businesses next year will be directed by the Government to our Army and national security. These are the realities of the 2023 budget, which was passed this week," Shmyhal said.

In particular, UAH 1.1 trillion is set to be allocated to the Armed Forces of Ukraine and security next year, almost UAH 450 billion will be allocated to social programs and pensions. UAH 176 billion is set to cover health care and UAH 156 billion – education.

Read also: Ukraine Parliament passes wartime budget - Stefanchuk

"These are the four main items of expenditure. The state's own revenues will amount to UAH 1.3 trillion, while expenditures will stand at UAH 2.6 trillion. We plan to cover the deficit of more than 20% of GDP thanks to the support of international partners, with whom we are constantly negotiating new financing programs," added PM.

The head of government also reported that half of the objects in Ukraine are already being heated.  There are 14.5 billion cubic meters of gas in gas storages, which is enough to get through the winter.

Energy teams continue repairs 24/7 to restore stable power supplies. Ukraine has already received 700 generators from donors, while another 900 will be delivered in the near future.

According to Shmyhal, 12 countries deliver necessary equipment for repairs. "We are doing everything to ensure that every Ukrainian has light and heat in the winter," said Shmyhal.

Thanks to Government grants under the e-Robota (w-Work) program, more than 650 new businesses have already been created. According to the head of the Government, these are thousands of jobs and millions of hryvnias in taxes for the Army and the rest of the country.

"In the 2023 state budget, it was assumed that the e-Robota program would help create even more new enterprises and jobs. Likewise, next year, the 5-7-9 program of affordable loans will continue, thanks to which businesses have received UAH 60 billion since the beginning of the full-scale war," Shmyhal said.

The authorities continue to help internally displaced persons. Thus, in Ukraine, preferential mortgage opportunities for IDPs have been expanded. In particular, this concerns an increase in terms and the area for which soft loans are granted.

UAH 34 million was additionally allocated to compensation for state and communal institutions for free accommodation of displaced persons. Currently, there are 150,000 people staying such institutions. Since the beginning of the full-scale war, the government has compensated institutions a total of over UAH 459 million to pay utility bills.

Shmyhal noted that the grain initiative has been working for four months. More than 10 million tonnes of Ukrainian agricultural products were sent to 43 countries around the world. The initiative contributes to overcoming the global food crisis and improves the situation for Ukrainian farmers and the economy in general. Ukraine is interested in its continuation and is working to this end with the UN, Turkey, and other partners.

As reported by Ukrinform, on November 4, Prime Minister Denys Shmyhal said that half of the state budget for next year will be financed from own resources, while international partners will help with the rest of the financing.

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