Ukrainian finance minister submits 2025 draft budget to Rada

MOSCOW. Sept 20 (Interfax) - Ukrainian Finance Minister Sergei Marchenko presented a bill on a 2025 state budget at a plenary session of the Ukrainian Verkhovna Rada on Friday, Ukrainian media reported.

The draft budget's general fund revenues, without grants and inter-budgetary transfers taken into account, are planned at UAH 2.7 trillion, which is UAH 411 billion more than in 2024.

Tax collections are to be the main source of budget revenues next year, according to the draft. In particular, VAT on imported goods should amount to UAH 594 billion (+UAH 95 billion to the 2024 target), personal income tax UAH 354 billion (+UAH 150 billion), VAT on manufactured goods UAH 318 billion (+UAH 29 billion), profit tax UAH 206 billion (+UAH 22 billion), excise tax on manufactured goods UAH 132 billion (+UAH 34 billion), and excise tax on imported goods UAH 115 billion (+UAH 20 billion).

The state budget's general fund expenditures are planned at UAH 3.644 trillion, which is UAH 535 billion more than in 2024.

The overall expenditures on national security and defense in 2025 should amount to UAH 2.223 trillion (around 26% of GDP), or UAH 530 billion more than the 2024 target.

Around UAH 420 billion will be spent on social welfare and pensions, including UAH 280 billion on pensions and UAH 128 billion on social support.

The draft budget also envisions spending UAH 25 billion on supporting businesses.

The draft budget estimates Ukraine's need for foreign financing in 2025 at $38.4 billion. The Finance Ministry said the estimate was agreed with International Monetary Fund (IMF) experts during their visit to Ukraine earlier in September. The European Union, the IMF, and G7 are expected to provide the financing.

The 2025 draft budget projects the budget deficit to decrease to 19.4% of GDP, with the state debt to decrease next year to 97% from 100.5% of GDP, amounting in monetary terms to UAH 8.2 trillion.

Public borrowing is planned in the amount of UAH 2.238 trillion, including UAH 579.2 billion inside the country.

As much as UAH 691 billion should be spent on repaying the state debt and UAH 481 billion on servicing it.