Ukrainian President Viktor Yanukovych has signed law No. 719-VII on Ukraine's state budget for 2014, the presidential press service has reported.
As reported, the Verkhovna Rada at a meeting on January 16 adopted the law on the state budget for 2014 without discussion.
The Finance Ministry said earlier that the government-approved deficit was raised by UAH 12 billion, to UAH 71.6 billion, which is about 4.3% of GDP.
Budget revenues were revised up slightly, from UAH 392.4 billion to UAH 392.6 billion, but expenditures and loans grew by UAH 15 billion, to UAH 471.3 billion.
The state budget is based on the forecast for GDP growth of 3% and inflation of 4.7%, with the hryvnia exchange rate projected at UAH 8.40-8.50/$1.
“The state budget for 2014 foresees an enabling fiscal policy aimed at the continuation of the gradual improvement of living standards,” the ministry said.
Due to a shortfall of budget revenues, Ukraine’s parliament late in December 2013 amended the state budget for 2013, having reduced the revenues by UAH 19.4 billion, or 5.2%, to UAH 370.56 billion. In particular, the revenues of the budget’s general fund were cut to UAH 304.48 billion.
At the same time, MPs raised the deficit of the state budget by the similar amount, to UAH 69.98 billion. The reduction in the revenues was balanced by borrowings worth $3 billion from Russia, which was agreed by the Ukrainian and Russian presidents on December 17, 2013.
As the State Treasury Service reported earlier, the revenues of the budget’s general fund January through November 2013 amounted to UAH 266.43 billion, which was 2.8%, or UAH 7.2 billion, up on year-over-year.
A total of UAH 42.38 billion was transferred to the budget’s special fund in the 11 months of 2013, which was 8.6%, or UAH 4 billion, down on the same period of 2012.
The deficit of Ukraine’s state budget in January-November 2013 was estimated at UAH 46.5 billion. The deficit of the budget’s general fund alone was UAH 50.48 billion.
