Ukraine Backs Draft 2022 Budget in Next Step Toward IMF Cash

(Bloomberg) -- Ukraine approved next year’s draft budget, part of efforts to restart a $5 billion aid program with the International Monetary Fund.

Parliament on Wednesday backed legislation that envisages narrowing the fiscal deficit to 3.5% of gross domestic product from a planned 5.5% in 2021. The numbers are based on an economic-growth forecast of 3.8%.

The cabinet will re-submit the bill to parliament by Nov. 3 for the second and final readings, the Finance Ministry said in an emailed statement.

“The 2022 draft budget is realistic and balanced,” Finance Minister Serhiy Marchenko told lawmakers. “While the IMF mission was working in Ukraine, we also discussed the draft budget. It found positive reviews.”

Ukraine reached a staff-level agreement with the Washington-based lender on Monday and the next day passed two laws needed to access about $700 million of financing in November.

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