State budget-2021: Marchenko told what the IMF insisted on

The main negotiations with the International Monetary Fund concerned spending and the deficit, with the result that the deficit was reduced.

The Cabinet of Ministers was forced to reduce the deficit of the preliminary draft of the state budget for 2021 from 6 to 5.5%. The reason for this was negotiations with the IMF. This was announced at a briefing on Thursday, November 26, by Finance Minister Sergei Marchenko.

“We had difficult negotiations with the IMF. First of all, because we had to find a compromise on spending and deficits. We agreed on the parameters of the deficit and we were forced to accept a situation where we had to reduce the deficit. Those calculations that were there before. At the first reading, it was necessary to adjust according to the possibilities of our loans, “said Marchenko.

Presenting the revised draft of the State Budget at a meeting of the Cabinet of Ministers, he also noted that a further reduction in the budget deficit is expected in the medium term.

Budget revenue reflects the revenue that the economy can actually provide next year without raising taxes.

We will remember, on Thursday night, November 26, that the Cabinet of Ministers adopted the revised state budget project for 2021.

As reported, the Cabinet of Ministers was unable to approve the draft budget for the second reading at an extraordinary meeting on November 20. The Rada will not have time to approve the state budget on time, until December.

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