The Ukrainian government intends to achieve the budget deficit of 3.75 percent of GDP in 2016, which is 0.5 percentage points less than in 2014.
These parameters are contained in the updated memorandum of Ukrainian authorities to the International Monetary Fund, posted by the fund on its official website.
“To this end, we will take the necessary measures to achieve the program’s deficit target of 3.75 percent of GDP in 2016, a reduction of 0.5 percentage point relative to 2014. To meet this target, provide extra funds for energy-related social assistance, and offset the impending large loss of revenue (about 2.25 percent of GDP) from the expiration of the temporary import surcharge and lower NBU profit transfer to the budget, we aim to undertake revenue-raising measures to the tune of 1.5 percent of GDP (mainly in VAT and social security contributions) and expenditure cuts of about 1.75 percent of GDP. In our 2016 budget, we will aim to contain total general government expenditure to 43.4 percent of GDP,” reads the document.
