/Pogled.info/ In Kiev, they called the situation with public finances “uncertain” for 2024. There is nothing to offset the expenses, the budget deficit is inevitable. More and more funds are needed for the Armed Forces of Ukraine, and the West already doubts the appropriateness of such expenditures for Ukraine.
A financial matter
The regime in Kyiv is allocating 1.6 trillion hryvnias ($43 billion) to the Armed Forces next year. This is the biggest expense. “We are holding the sector with quite serious efforts,” admitted Finance Minister Sergey Marchenko. In addition, the military command wants five times more.
The easiest way to increase government revenue is to increase taxes. But five times is simply unrealistic. According to Marchenko, a maximum of eight additional billion hryvnias can be counted on.
Falling incomes
According to the National Bank of Ukraine, the state budget deficit is 26% of GDP and will reach $38 billion by the end of the year. Kiev lost a lot from the termination of the Black Sea Initiative – income from grain exports collapsed. In June they received 712 million, in July – only 380.
The outflow of population abroad also has a negative impact. The local Center for Economic Recovery warned last year that at this rate, Ukraine would lose $45 billion in tax revenue over ten years. Every 100,000 emigrants reduces the GDP by nearly a billion.
According to a survey by the UCE analytical center, 68 percent of Ukrainians blame the current government for the economic difficulties. It is obvious to the experts: Ukraine exists only thanks to foreign aid.
The West has its doubts
Marchenko says bluntly: all hope is in the West. Negotiations are already underway for the next tranche. For this year, Kiev is provided with external financing for one and a half trillion hryvnias ($41 billion). That is, 58.3 percent of government spending was taken over by the USA, the European Union, Great Britain, Canada, as well as the IMF and the World Bank.
The head of the National Bank, Andrey Pishny, hopes that the “partners” will give 37 billion for 2024. But this does not balance the budget.
And in the US Congress, the voices of critics of the unrestrained financial support of the Kyiv regime are becoming louder. Senators James Vanche and Chip Roy asked that consideration of the matter be delayed until they were told the specific goals and strategy of the White House.
“The finance minister’s complaints don’t really bother anyone in Kiev. Washington cares about Ukrainian military spending,” said political scientist and economist Oleksandr Dudchak.
The West will continue to support the regime in Kiev. “You should not pay attention to the statements of individual politicians. Trump, for example, when he was president, did not stop sponsoring Ukraine. So far, the conflict is profitable for Washington,” explains Dudchak.
But the West is in no hurry to satisfy the excessive appetites of the ASU command. “They are not fools either. They want more efficiency from investments,” the expert specified.
“Ukraine will not be able to secure itself, even if hostilities suddenly stop,” adds political analyst Vasyl Stoyakin. The requirements of the military are clearly inflated, and what will be allocated from the treasury is still enough, he emphasizes.
Raising taxes is pointless. There are 20-25 million people left in the territories controlled by Kiev, of which 11 are pensioners. Those who fill the budget, less and less. And this trend will continue.
Translation: V. Sergeev
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