- Ukraine’s Parliament approves state budget for 2018
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Ukraine’s Parliament approves state budget for 2018
The draft stated budget for 2018 was adopted by the Verkhovna Rada in the second reading and as a whole. According to the updated draft, budget’s total income and expense for 2018 are expected at the level of UAH 914 bn (approx. USD 34 bn) and UAH 996 bn (approx. USD 37 bn) respectively, resulting in a UAH 82 bn (USD 3 bn) deficit. During the preparation of the draft for the second reading, the government revised the target of expected inflation for 2018 to 9% from 7% and the level of nominal GDP from UAH 3,247 bn (USD 120 bn) to UAH 3,332 bn (USD 123 bn), while the forecast of real GDP growth remained at the previous level of 3.0%.
In 2018 the budget deficit is expected not to exceed 2.5% of GDP, compared with the level of 2.7% in 2017. Such reduction of the deficit amount satisfies demands of the International Monetary Fund (IMF) within the USD 17.5 bn Extended Fund Facility (EFF) program and makes possible further cooperation with the financial institution. Meanwhile, the inflation forecast revision was necessary, considering worsening of expectations in the end of October.
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