OREANDA-NEWS. December 05, 2012. Verkhovna Rada of Ukraine accepted to review draft State Budget 2013 Law of Ukraine submitted by the Ministry of Finance.

When thinking about the next year’s budget, one should remember that, as the global economy has deteriorated its development outlook, the Government of Ukraine faces new and a series of urgent challenges for 2013. We are indisputably aware of the fact that the economic environment of our times has changed. Specifically, we are now less demanded in outside trade markets, which resulted in our primary export earners’ products price going lower; global capital markets have significantly upvalued energy resources and further shortened financial resources.

Nonetheless, despite outside developments, through an effective teamwork and sound planning approach, the Government managed to find financial resources for the economic growth, underlie powerful tools to resist financial instability and accumulate the resources we have, to diminish the global financial crisis negative impact.

Next year’s budget is based on realistic national measures as follows:

- GDP growth – 3.4%;
- nominal GDP – UAH 1.576 billion;
- Consumer Price Index – 4.8%;
- Producer Price Index – 5.5%.

To this effect, Consolidated Budget revenue will be UAH 463.1 billion, and expenditure UAH 525.6 billion.

State Budget revenue will be UAH 359.9 billion, and expenditure UAH 424 billion.

A priority of the 2013 Budget is still the step-by-step policy of raising social standards and increasing social expenditure.

Until late 2013, in relation to the same period of 2012, minimum official wage and living wage will grow by 7.4%, with CPI of 4.8%.

Next year’s draft budget envisages social expenditure of 61.5 billion made up of:

• allowance for young families – UAH 40.1 billion;
• granting priviledge - UAH 2 billion;
• housing allowances – UAH 8.2 billion,
• social security for those affected by Chornobyl disaster– UAH 2.6 billion,
• scholarship – UAH 8 billion.

Also, Pension Fund of Ukraine allocations targeted for the next year will financially secure the implementation of the President of Ukraine pension social initiatives introduced this year.

As for the budget’s economics, the bill’s provisions are supposed to:

- lower tax burden and provide preferences for businesses;
- stimulate economy development through various budget options (cheapening credits, providing state guarantees), etc.

The 2013 budget is an absolutely balanced istrument designed to implement social and economic assignments to stimulate the economy growth and improve people’s welfare.