The Cabinet of Ministers of Ukraine plans to compensate for the additional UAH 6.7 billion of state budget expenditures in connection with the move to raise social standards in 2016 by 16% instead of the planned 12% with an increase in tax revenues from the state gas producer Ukrgazvydobuvannya, the press service of the Finance Ministry said.
”Expenses in the amount of UAH 6.7 billion will be financed mainly by the increased tax revenues from Ukrgazvydobuvannya due to the purchase price of natural gas to be raised from May 1, 2016,” said the press service.
Thus, according to the ministry, increased social spending will be balanced with an increase in tax revenues of non-equity nature and will not lead to an increase in the state budget deficit planned at 3.7% of GDP. Such a limit value of the state budget deficit was stipulated in the agreement with Ukraine`s key creditor, the International Monetary Fund.
As UNIAN reported earlier, at a Cabinet meeting April 27, it was decided to table to the Verkhovna Rada a bill on amending the state budget for 2016, which provides for an increase in social standards from December 1, 2016, by 10% instead of 6% as planned by the previous Government. Thus, social standards in 2016 will grow by 6% from May 1 and by 10% from December 1, which will total 16% instead of the 12% planned earlier.
At the same time, Prime Minister Volodymyr Groysman said that this may be not the final increase of social standards in the current year.
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