Ukrainian Parliament Adopts 2022 State Budget With 3.5% GDP Deficit

Muhammad Irfan Published December 02, 2021 | 07:04 PM

The Ukrainian parliament on Thursday adopted the 2022 national budget with a deficit of 3.5% of GDP and 6.2% inflation in the second reading, with 5.95% of GDP earmarked for military spending

KIEV (UrduPoint News / Sputnik - 02nd December, 2021) The Ukrainian parliament on Thursday adopted the 2022 national budget with a deficit of 3.5% of GDP and 6.2% inflation in the second reading, with 5.95% of GDP earmarked for military spending.

The budged was adopted by 268 votes, with the threshold of 226 votes.

The new budget sets minimum wage at about $244, with average wage projected to grow from $590 to $656 by the end of the year. The minimal salary of medical personnel is set to increase to $750.

The national security and defense sector is allocated 319.4 billion hryvnia ($12 billion), including 131 billion hryvnia earmarked for the Ministry of Defense specifically.

The budget estimates put the 2022 gross national income at 1.2 trillion hryvnia while spending is pegged at 1.2 trillion hryvnia. Ukraine plans to borrow about $20 billion and spend another $21 billion on paying and servicing the existing debts.

The 2022 Ukrainian budget was calculated based on the exchange rate of 28.6 - 28.7 hryvnia per 1 US Dollar.

The Ukrainian opposition heavily criticized the new state budget for not introducing much change compared to budget drafts of previous years which it believes plunged the country into poverty.