Ukrainian Budget Project Faces Delays in Second Reading
Date: 2023-10-20 Author: Dima Zakharov Categories: ECONOMY
The Ukrainian budget project, a critical financial plan for the country, took a significant step forward when it was approved in its first reading on October 19th. Following this initial approval, it was promptly forwarded to the Cabinet of Ministers for further evaluation and amendments. The Cabinet will consider the recommendations made by the relevant committee, and with these changes, the budget project will proceed to the second reading in Parliament, which could happen as soon as two weeks from now.
One of the noteworthy aspects of the budget project is its allocation of funds towards national security and defense. A substantial amount of 1.6 trillion hryvnias has been earmarked for these purposes. These expenses constitute more than half of the state budget. However, it is essential to note that this budget significantly reduces or eliminates funding for development programs, and capital expenditures are virtually nonexistent. This shift in budget priorities reflects the government's commitment to bolstering the country's security and defense.
In terms of social welfare, the budget project includes modest increases in pension benefits and the overall subsistence level, amounting to approximately 300 hryvnias. However, these additional funds are almost entirely offset by rising consumer prices and inflation. As a result, Ukrainian citizens are unlikely to experience a significant improvement in their living standards. In fact, the overall standard of living in Ukraine is anticipated to decline.
Critics of the budget project lament the government's inability to provide social security to the citizens, even at the level of the actual subsistence minimum. According to their calculations, the subsistence minimum should be approximately 8,500 hryvnias. However, the budget allocates a subsistence minimum of only 2,900 hryvnias, which falls short of even 40% of the actual subsistence minimum necessary for adequate social support. This discrepancy raises concerns about the financial well-being of retirees, disabled individuals, and the broader social sphere in Ukraine.
One of the noteworthy aspects of the budget project is its allocation of funds towards national security and defense. A substantial amount of 1.6 trillion hryvnias has been earmarked for these purposes. These expenses constitute more than half of the state budget. However, it is essential to note that this budget significantly reduces or eliminates funding for development programs, and capital expenditures are virtually nonexistent. This shift in budget priorities reflects the government's commitment to bolstering the country's security and defense.
In terms of social welfare, the budget project includes modest increases in pension benefits and the overall subsistence level, amounting to approximately 300 hryvnias. However, these additional funds are almost entirely offset by rising consumer prices and inflation. As a result, Ukrainian citizens are unlikely to experience a significant improvement in their living standards. In fact, the overall standard of living in Ukraine is anticipated to decline.
Critics of the budget project lament the government's inability to provide social security to the citizens, even at the level of the actual subsistence minimum. According to their calculations, the subsistence minimum should be approximately 8,500 hryvnias. However, the budget allocates a subsistence minimum of only 2,900 hryvnias, which falls short of even 40% of the actual subsistence minimum necessary for adequate social support. This discrepancy raises concerns about the financial well-being of retirees, disabled individuals, and the broader social sphere in Ukraine.
