Ukraine's Cabinet proposes amendments to 2020 budget over coronavirus spread.

To cover the deficit, the government proposes raising domestic borrowings by US$5.3 billion and external ones by US$4.7 billion.

Major cuts in spending are being planned / Photo from UNIAN

Major cuts in spending are being planned / Photo from UNIAN

Ukrainian MP Oleksiy Honcharenko says the Cabinet of Ministers has proposed that the Verkhovna Rada, Ukraine's Parliament, introduce amendments to the national budget for 2020 due to the coronavirus spread, which provide for a reduction in revenues by UAH 115 billion (US$4.1 billion) and an increase in spending by UAH 96 billion (US$3.4 billion).

"Accordingly, the state budget deficit will grow by UAH 202 billion (US$7.2 billion), or almost by four," he wrote on his Telegram channel on March 26.

Honcharenko added that, to cover the deficit, the government proposes raising domestic borrowings by UAH 147 billion (US$5.3 billion) and external ones by UAH 131 billion (US$4.7 billion), as well as creating a budget stabilization fund worth UAH 124 billion (US$4.4 billion).

Read alsoUkraine's envoy to IMF outlines negative economic consequences in case of default

According to the official, the Cabinet of Ministers proposes abandoning "programs for the development of education (including the New Ukrainian School program), regional development (the State Fund for Regional Development, the unified territorial communities' subvention for infrastructure, and social economy), and support for agricultural producers."

"The Cabinet also proposes that subsidy spending be reduced by UAH 8 billion [US$286.1 million], while financing of the Ukrainian Cultural Fund be halted," he said.

In addition, it is proposed to reduce funding for road works by almost UAH 8 billion (US$286.1 million), cancel support for national cinema, theaters, and the Ukrainian Book Institute, as well as slash spending on sports, including for para-athletes.

"And here's the cherry on the cake: severing financing of local elections 2020!!! Are we canceling local elections set to be held on October 25 of this year?" he wrote.

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