Ukraine to allocate UAH 14 bln in excise tax revenues for road construction next year

The Cabinet of Ministers of Ukraine next year plans to use proceeds from excise tax payments and allocate UAH 14.2 billion from tax collections for repairs and construction of roads, according to Prime Minister Volodymyr Groysman.

The government also plans to additionally attract $1 billion in the context of cooperation with international financial institutions.

”The state budget expenditures [for road repairs] are projected at UAH 14.2 billion, just under excise tax revenues. I want the Ukrainian people to drive on good roads. It is our common position. It`s possible to be achieved. Additionally, we can attract up to $1 billion from international financial organizations,” Groysman said Thursday while presenting key provisions of the draft budget.

As UNIAN reported earlier, next month the government plans to submit for consideration of parliament a draft law on the establishment of the Road Fund. The Fund is designed to become a main mechanism for raising funds for road repairs.

Earlier, the government planned to allocate about UAH 30-40 billion for road repairs in 2017.

According to Ukravtodor, at least UAH 60 billion is needed every year for building and repairing roads in Ukraine. At this, over 90% of Ukrainian roads require overhauls or reconstruction.

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