The Cabinet of Ministers of Ukraine has approved the draft State Budget for 2025

On 13 September this year, the Cabinet of Ministers of Ukraine adopted the draft Law of Ukraine ‘On the State Budget of Ukraine for 2025’ and submitted it to the Verkhovna Rada of Ukraine (Reg. No. 12000 of 14 September 2024).

In calculating the indicators of the draft State Budget of Ukraine for 2025, the main forecast macroeconomic and social development indicators of Ukraine were used, which were approved by the Resolution of the Cabinet of Ministers of Ukraine No. 780 dated 28 June 2024 and were taken into account when preparing the Budget Declaration for 2025-2027 (Resolution of the Cabinet of Ministers of Ukraine No. 751 dated 28 June 2024).

The revenues of the general fund of the State Budget next year are expected to reach UAH 2007.4 trillion. Expenditures of the general fund of the budget are planned at UAH 3643.6 trillion.

Prime Minister of Ukraine D.A. Shmyhal stressed that the priority of this budget is very clear – it is the defence and security of Ukraine. All domestic resources will again be allocated for these purposes.

In the draft State Budget of Ukraine for 2025, total resources for national security and defence are envisaged in the amount of UAH 22.223 trillion, or 26.3 per cent of GDP.

The second priority is the financing of protected budget items. Over UAH 414 billion is allocated for social protection. Pensions will be indexed (starting from 1 March 2025), and subsidies will be paid to all those in need.

The third priority is to support regions and businesses. Thus, UAH 12.2 billion is allocated to support the regions in the form of a subvention to compensate for the difference in tariffs, which will allow local budgets to ensure the availability of utilities for the population.

The average exchange rate for the period 2025 will be UAH 45.0/USD. USD (in 2024, this figure is expected to be 40.8).

The NBU has set aside UAH 43.9 billion in the reserve fund to respond quickly to unforeseen events. Social standards, including the minimum wage and the subsistence level, remain at the level of December 2024.

The forecast for the financing of the State Budget for 2025 envisages a reduction in the state budget deficit to 19.4% of GDP (20.6% in the current law on the State Budget for 2024), which is in line with the targets agreed with international partners.

Public borrowings of the general fund are planned to amount to UAH 2237.6 billion, including domestic borrowings of UAH 579.2 billion and external borrowings of UAH 1658.4 billion.

At present, not all of the external borrowings have been confirmed by international partners, which requires further painstaking and persistent work.

In 2025, the State Road Fund, created as part of a special fund of the state budget, is planned to be used, in particular, for

development of the network and maintenance of public roads of national importance – UAH 11.32 billion
construction, reconstruction, repair and maintenance of public roads of local importance, streets and communal roads in settlements (subvention from the state budget to local budgets) – UAH 6.60 billion;
fulfilment of debt obligations on borrowings raised by the state under state guarantees for the development of the public road network – UAH 24.35 billion.

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