A draft bill on budget policy guidelines for 2018-2020, or the so-called Budget Resolution, which was approved by Ukraine’s Cabinet of Ministers on June 24, projects that the average annual forex rate in 2017 will grow to Hr 27.2 per U.S. dollar.
This indicator is mentioned in the annex to the bill posted on the Ukrainian parliament’s website.
The average official forex rate of the hryvnia for 2016 was given for comparison, it was set at Hr 25.55 per U.S. dollar.
Subsequently, the Budget Resolution provides for an increase in the average annual forex rate to Hr 29.3 per U.S. dollar in 2018, further to Hr 30.5 per U.S. dollar in 2019 and to Hr 31 per U.S. dollar in 2020.
At the same time, the document notes that the major indicators can be adjusted taking into account updated statistical data, changes in the current social and economic situation, as well as actual economic conditions.
As reported, the Ukrainian government on June 14 approved the Budget Resolution for 2018-2020 on the condition of its finalization within three days.
The said document suggests a reduction in the national budget deficit to 2% of GDP by 2020 and a decrease in the share of state debt to 55% of GDP. In particular, the state budget deficit is planned at the level of Hr 77.6 billion, or 3% of GDP, by the end of this year. It is projected at Hr 77.9 billion, or 2.4% of GDP, in 2018 and at Hr 79.4 billion, or 2.2% of GDP, in 2019 and at Hr 79.6 billion, or 2% of GDP, in 2020.
Meanwhile, state debt is expected to reach 66.8% of GDP by the end of this year, 62% of GDP in 2018, 58% of GDP in 2019, and 55% of GDP in 2020.
