KIEV, April 5 – The World Bank projects Ukraine's budget deficit would expand to 3.1% of GDP in 2017 due to an increase in the minimum wage and the large deficit of the Pension Fund.

Faruk Khan, the lead economist and program leader for Ukraine, Moldova and Belarus, said Ukraine’s deficit doubled to 2.2% of GDP in 2016.

"In order to address macroeconomic vulnerabilities and gradually reduce public debt, the fiscal framework targets a reduction of the deficit to 2 percent of GDP by 2020," Khan said.