Prime Minister of Ukraine Volodymyr Groysman, at a
Government meeting on Wednesday, presented the core objectives included in the
State Budget for 2017 that had been passed earlier this day by the Parliament.
"The focus of this Budget is a person," said the
The Government adopted a decision to increase the minimum
wage twofold from 1 January in Ukraine - up to UAH 3200. "It was a bold,
but unprecedented decision in the history of the country's independence, when the
minimum wage doubles", he said.
2017 will see a growth of average wages of healthcare
employees. Wages of health workers will increase by over a third in 2017 and
for various categories will amount from UAH 3960 up to a maximum figure – UAH 8475.
Moreover, a resource for centralized purchase of medicines has
been raised by UAH 2 billion – amounting to UAH 5.9 billion.
In general, financing of the healthcare system has been
increased by almost UAH 19 billion.
Formation of wage for Ukrainian teachers has changed - it
was raised by two tariff categories.
The first tariff category has been also changed from UAH 1335
to UAH 1600.
The average salary of pedagogical staff of secondary schools
will increase by almost 50%. Wages will grow on average from UAH 1672 to 2140 as
compared to wages in 2016. From the first day this issue was a priority for the
Government, said Volodymyr Groysman.
Approaches to the payment of academic and social
scholarships to students also underwent change. In general, the Government has
increased funding for scholarships by UAH 576 million.
Volodymyr Groysman noted that the scholarship should
encourage success in education, to serve as an additional motivation to obtain high
quality education and be competitive.
In 2015, when fiscal decentralization was launched, local
budgets grew by 52%. This year local budgets will grow by another 24%.
Presently, local budgets possess tremendous resources, said Volodymyr
In this regard, he stressed the need for effective use of
these funds, for investing these in the quality of life of Ukrainian citizens. Instead,
in many towns leaders keep the money in deposit accounts. "It is an
irresponsible position," announced the Head of Government.
"It is crucial to create a system in which money should
work to satisfy needs of Ukrainian citizens. Therefore, in the framework of
financial decentralization we musts provide not just revenues, but commitments
of local communities to act in the interests of their citizens”, emphasized the
Prime Minister. “It is the philosophy placed by us as a basis of Budget for
In this regard, in particular, the budget envisages for a
change in approaches to financing of education and healthcare, as well as the
devolution of authority to ensure maintenance of institutions in the aforesaid
areas, thereby stimulating local executive bodies to efficient energy use.
To secure here delegated powers and protection of communities
there has been planned an additional subsidy from the State Budget worth UAH
14.9 billion. The Head of Government added each community would get necessary
Another novelty is introduction of direct interbudget transfers for the consolidated territorial
communities that are capable of providing high quality services to the citizens.
Referring to additional support tools, the Prime Minister
noted that the Government had accumulated UAH 9 billion in the Budget, which
exceeds 2.2 times the relevant funding in 2016 for support of regional
Volodymyr Groysman refuted rumors
that the central government collects the excise tax on oil products from local
budgets. The Government considers that local excise tax should grow and
expects, due to the change in the system of tax administration throughout the
country, an increase in the excise tax for local budgets by over UAH 2 billion,
“Consolidation in the redistribution formula will ensure an
increase in revenues of local budgets”, explained the Prime Minister. “Revenues
are planned no less than the fact of 2016. And we hope that the change in the
administration system will enable growth in local budgets".
For the large-scale construction of roads there has been
planned in total over UAH 35 billion.
To ensure start of the road repair activities with beginning
of the season, the Government will focus on three tasks: determining a strategy
of development of road network, ensuring efficient use of resources and high
quality of road repair activities.
"There are three objectives: to determine a strategy of
road network development instead of just repairing or building a road to
nowhere. We must build roads for people to benefit that are in demand in the
country and that will emphasize our logistics capabilities and positively
influence the development of the national economy. Therefore, we must define a
clear strategy what and where we build. The second is the price. It should be
competitive, the most efficient use of funds, it should be honest. Here
question No. 1 is resource efficiency. And the third position is quality",
told Volodymyr Groysman.
For 2017, in particular it has been intended establishment
of an Energy Efficiency Fund.
The planned expenses of the State budget amount to UAH 800
million, while funds from international donors are expected at the level of UAH
3 billion UAH (up to ˆ 100 million).
Support for AIC
A sum worth UAH 6.5 billion has been envisaged to support
agricultural producers, including to support agricultural
"Our goal is to maintain investment in Ukraine, to
produce a high-quality competitive product in Ukraine, instead of being a
supplier of raw materials. We must sow, harvest, process,
pay people wages and then sell. Hence, we will have jobs
for people, wages, foreign exchange earnings in the country exceeding those we
have today," said Volodymyr Groysman.
The total budget for National Public Television and Radio Broadcassting Company of Ukraine is planned to amount UAH
1.2 billion, said the Prime Minister.
Spending on this sector has been raised and it is a proof culture
is considered one of the topmost directions to the Government.
Financing of diplomatic
missions in 2017
Expenditure on the diplomatic service in 2017 has been increased
by UAH 1 billion – from being UAH 3 billion in 2016 up to UAH 4 billion in
"We have fulfilled our promises to the Ukrainian
diplomacy," stressed Volodymyr Groysman.
The Prime Minister emphasized the Government's openness and
encouraged social activists and experts to track where "each budgetary hryvnia" is spent, thereby contributing to improving of
efficiency of use of budgetary resource at any level.
"Help us to enhance our transparency," urged Volodymyr