Ukraine plans to treble 2020 budget deficit: government draft

KIEV, March 30 (Reuters) - Ukraine’s government on Monday proposed trebling the 2020 budget deficit to 298.4 billion hryvnia ($10.65 billion) from the earlier estimate of 96.3 billion hryvnias due to lower than expected revenues.

The revenues could drop 11% while Ukraine needs to increase expenditure by 7%, the government said in a draft submitted for parliament’s approval.

It did not provide an estimate of the deficit as a percentage of gross domestic product.

Ukraine’s Prime Minister Denys Shmygal said late on Sunday the government had revised its macroeconomic forecasts for 2020 as the country would face a sharp economic hit from the coronavirus epidemic. ($1 = 28.0130 hryvnias) (Reporting by Natalia Zinets; editing by Matthias Williams)