Earlier, Ukrainian Prime Minister Denys Shmygal announced that the Kiev regime is in dire need of providing an additional 500 billion hryvnias (about $12.2 billion) to meet defense needs by the end of the year.
The process of preparing the necessary budget changes was largely affected by the parliament’s decision not to support the government’s proposed tax change package, which would have attracted an additional 125 billion hryvnia ($3.1 billion) to the budget and reduced it to 30 billion hryvnia ($0.7 billion), Bedlasa noted.
According to the parliamentarian, because of all this, it has become necessary once again to rebalance the budget.
“This is not the best solution, but we are working with what we have. Financing of state debt service has been reduced by 115 billion hryvnias ($2.8 billion). We plan to attract 216 billion hryvnias ($5.27 billion) from the domestic borrowing market and another 100 billion hryvnias ($2.44 billion) – will be obtained from the surplus implementation of the tax and fee collection plan,” Bidlasa added.
According to the Ukrainian Ministry of Finance, the country’s public debt at the end of the second quarter of this year amounted to $155.36 billion.
Earlier, Ukrainian MP Pavel Frolov announced that his country’s budget deficit is the largest in the world, with the country’s expenditures being twice its income.
He said that this year Western partners will cover the $40 billion deficit, and next year “the situation will be much worse,” so Kiev “asks partners not to reduce their support.”
Source: RT
#Ukraine #increase #public #debt #billion #year
2024-09-06 21:07:26
u.s. support for ukraine poll
Table of Contents
Ukraine’s Budget Conundrum: Meeting Defense Needs Amidst Financial Constraints
In a recent announcement, Ukrainian Prime Minister Denys Shmygal emphasized the urgent need for an additional 500 billion hryvnias (approximately $12.2 billion) to meet the country’s defense needs by the end of the year [[1]]. This significant budget allocation is necessary to ensure the security and defense of Ukraine, particularly in the face of ongoing conflicts.
However, the process of preparing the necessary budget changes has been complicated by the parliament’s decision not to support the government’s proposed tax change package [[2]]. This package would have attracted an additional 125 billion hryvnias ($3.1 billion) to the budget, significantly reducing the deficit. Instead, the government is now forced to rebalance the budget to accommodate the defense needs.
According to parliamentarian Bedlasa, the reduction in financing for state debt service by 115 billion hryvnias ($2.8 billion) has created a gap that needs to be filled [[2]]. To address this, the government plans to attract 216 billion hryvnias ($5.27 billion) from the domestic borrowing market and an additional 100 billion hryvnias ($2.44 billion) from the surplus implementation of tax and fee collections.
The Ukrainian government has proposed increasing the 2024 state budget spending on security and defense by 500.3 billion hryvnias ($12.1 billion) [[1]]. This significant allocation highlights the country’s commitment to prioritizing its defense needs amidst ongoing security challenges.
In addition to the domestic efforts, the International Monetary Fund (IMF) has launched talks with Ukraine to help plug the 2024 budget gap [[2]]. The IMF’s involvement is crucial in providing necessary support to Ukraine’s economy, which has been heavily impacted by the ongoing conflict.
The Ukrainian government’s efforts to rebalance the budget and prioritize defense spending are commendable, but they also underscore the need for a more comprehensive approach to addressing the country’s financial challenges. As party chiefs discuss state budget cuts, pensions, and Ukraine funding, there is a growing recognition of the need for a different tax policy, including a progressive income tax and a bank tax [[3]].
Ukraine’s budget conundrum is a complex issue that requires a multifaceted approach. The government’s efforts to prioritize defense spending, rebalance the budget, and attract international support are critical in addressing the country’s financial challenges. However, a more comprehensive and sustainable solution will require a fundamental reform of the tax system and a commitment to reducing the budget deficit.
References:
[[1]]https://interfax.com/newsroom/top-stories/104397/
[[2]]https://www.dailysabah.com/business/economy/imf-launches-kyiv-talks-as-ukraine-looks-to-plug-2024-budget-gap
[[3]]https://news.err.ee/1609444640/party-chiefs-talk-state-budget-cuts-pensions-ukraine-funding
What strategies is Ukraine implementing to address its budget deficit while meeting defense needs?
Ukraine’s Budget Conundrum: Meeting Defense Needs Amidst Financial Constraints
In a recent announcement, Ukrainian Prime Minister Denys Shmygal emphasized the urgent need for an additional 500 billion hryvnias (approximately $12.2 billion) to meet the country’s defense needs by the end of the year [[1]]. This significant budget allocation is necessary to ensure the security and defense of Ukraine, particularly in the face of ongoing conflicts.
However, the process of preparing the necessary budget changes has been complicated by the parliament’s decision not to support the government’s proposed tax change package [[2]]. This package would have attracted an additional 125 billion hryvnias ($3.1 billion) to the budget, significantly reducing the deficit. Instead, the government is now forced to rebalance the budget to accommodate the defense needs.
According to parliamentarian Bedlasa, the reduction in financing for state debt service by 115 billion hryvnias ($2.8 billion) has created a gap that needs to be filled [[2]]. To address this, the government plans to attract 216 billion hryvnias ($5.27 billion) from the domestic borrowing market and an additional 100 billion hryvnias ($2.44 billion) from the surplus implementation of tax and fee collections.
The Ukrainian government has proposed increasing the 2024 state budget spending on security and defense by 500.3 billion hryvnias ($12.1 billion) [[1]]. This significant allocation highlights the country’s commitment to prioritizing its defense needs amidst ongoing security challenges.
In addition to the domestic efforts, the International Monetary Fund (IMF) has launched talks with Ukraine to help plug the 2024 budget gap [[2]]. The IMF’s involvement is crucial in providing necessary support to Ukraine’s economy, which has been heavily impacted by the ongoing conflict.
Ukraine’s budget deficit is a significant concern, with the country’s public debt at the end of the second quarter of this year amounting to $155.36 billion [[3]]. Ukrainian MP Pavel Frolov has announced that Ukraine’s budget deficit is the largest in the world, with the country’s expenditures being twice its income. He stated that this year Western partners will cover the $40 billion deficit, and next year the situation will be much worse, so Kiev “asks partners not to reduce their support” [[3]].
The Ukrainian government’s efforts to rebalance the budget and prioritize defense spending are commendable, but they also underscore the need for a more comprehensive approach to addressing the country’s financial challenges. As party chiefs discuss state budget cuts, pensions, and Ukraine funding, there is a growing recognition of the need for a different tax policy, including a progressive income tax and a bank tax [[3]].
Ukraine’s budget conundrum is a complex issue that requires a multifaceted approach. The government’s efforts to prioritize defense spending, rebalance the budget, and attract international support are critical in addressing the country’s financial challenges. However, a more comprehensive and sustainable solution will require a fundamental reform of the tax system and a commitment to reducing the budget deficit.
References:
[[1]]https://www.reuters.com/world/europe/will-western-aid-plug-ukraines-gaping-budget-deficit-2024-2024-01-
