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Country Budget 2022: Key Health Indicators and Expenditures

On December 10, the President of Ukraine signed the Law of Ukraine “On the State Budget of Ukraine for 2022” № 1928-IX, which the Verkhovna Rada adopted on December 2, 2021. The document will enter into force on January 1, 2022. In the field of health provided UAH 157.3 billion for the implementation of the program of state guarantees of medical care, UAH 4.3 billion – for the budget program “Public Health and measures to combat epidemics”, UAH 2.6 billion – for vaccination of the population from COVID-19. In this publication, we will consider the key items of expenditure on health in 2022.

The budget calculations for 2022 are based on the indicators of the baseline scenario of the macroeconomic forecast, approved by the Cabinet of Ministers of 31.05.2021 № 586 “On approval of the Forecast of economic and social development of Ukraine for 2022-2024”. In 2022, real GDP is expected to grow by 3.8%, while consumer inflation will slow to 6.2% (“December to December of the previous year”). The level of the average monthly salary will increase by 4.4% to UAH 15,258. Factors in wage growth should be the increase of social standards by the Government and the reduction of unemployment (up to 8.5%), which will take place in the context of the revival of economic activity.

Revenues of the State Budget for 2022 are set at UAH 1,323.9 billion (which is 9.7% more than in 2021). The main part of revenues will be tax revenues – UAH 1,169.1 billion. UAH 1.2 billion is expected to be received from official transfers (European Union, foreign governments, international organizations, donor institutions).

According to the Ministry of Health of Ukraine, the State Budget for 2022 provides funds to establish the basic level of salaries for doctors at 20 thousand UAH and 13.5 thousand UAH – for paramedics, as required by the decree of President of Ukraine Volodymyr Zelensky. Such salaries should be received by all physicians working under the Medical Guarantee Program (PMG). The budget provides for an increase in expenditures on SMP financing, procurement of medicines and medical equipment, development of the biocluster “Biosafety and development of biotechnological technologies”, transplants. Funds are also provided for vaccination of the population for the prevention of COVID-19 and others.

Expenditures envisaged by the State Budget for 2022 for the Ministry of Health of Ukraine include funding from the Ministry (UAH 36.7 billion), the State Service of Ukraine for Medicines and Drug Control (UAH 123.1 million) and the National Health Service of Ukraine (NHSU) UAH 157.6 billion), as well as national expenditures and lending (in the amount of UAH 2.4 billion). In total, health expenditures amounted to UAH 196.8 billion (3.7% of gross domestic product (GDP), an increase of 14.3% compared to the previous year).

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