Zelensky signs law to increase state budget expenditures by 5.5 billion UAH
In the second reading, MPs added amendments to the document on insurance of ships against russian attacks, as well as on the use of the Liquidation Fund, allowing them to be used for defence needs
President of Ukraine Volodymyr Zelensky has signed a law to increase state budget expenditures by 5.5 billion UAH. The money will be used to reconstruct hospitals, rebuild bridges, and provide grants to processing companies.
It is worth noting that in the second reading, MPs added several amendments to the document. In particular, they included compensation (up to 20 billion UAH) to owners of ships and vessels operating in inland waters if they are damaged or destroyed by the russian federation. The Cabinet of Ministers is allowed to use the Road Fund as a source of payment. There was also an offset for the Pension Fund (1.8 billion UAH). They are returning the money that was allocated to the Social Insurance Fund (now merged with the Pension Fund) to compensate doctors for working with Covid patients. These funds will be used to pay pensions.
The changes will also affect the work and sources of funding of the Fund for the Elimination of the Consequences of Armed Aggression. The original version of the draft law only referred to its transfer to the Ministry of Recovery (previously it was under the tutelage of the Ministry of Finance).
Later, the MPs added a provision according to which the money from the sale of assets of sanctioned russian oligarchs will be directed to the Liquidation Fund. They will then be used to build housing for those who lost it or to pay compensation. Moreover, there was talk of the possibility of restoring military infrastructure with these funds.
Besides, in the second reading, MPs supported an amendment by MP Yaroslav Zhelezniak to allow the fund to be used for defence purposes.
The law provides for 445.6 million UAH in grant aid and assistance from foreign governments; 1.27 billion UAH will be returned from the Social Insurance Fund; the remaining 3.84 billion UAH will be raised through additional external borrowings.
Previously. The Government proposed to increase state budget expenditures on defence by 518 billion UAH, with an additional 19 billion UAH to be allocated to the reserve fund.
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