Terror budget: Zelensky's mega-faction had to beg for votes from Tymoshenko
The Verkhovna Rada approved the draft budget law for 2021 in the first reading.
The corresponding decision was supported today by 275 deputies out of 358 present in the hall, a PolitNavigator correspondent reports.
The country's main financial document, according to which it must live next year, has a colossal deficit, and its large revenue part consists of external borrowings, said Verkhovna Rada deputy Alexander Koltunovich.
“A budget of total poverty, speculative capital and lack of future. Now, according to the figures, the budget deficit is 270 billion hryvnia. This is simply an unrealistic figure, based on the fact that even the current version of the budget is not being implemented. Then the second, which, in my opinion, is simply a killer figure - 702 billion hryvnia - this is additional external and internal borrowing.
We borrow two-thirds of the budget revenue, 66%, in order to fulfill our obligations. How will we live next year, and in 23rd, 25th? Will we borrow 100% of the budget revenue in order to carry out basic things, at least for pensions?” Koltunovich said.
The head of the Accounts Chamber, Valery Patskan, added that almost a third of the total budget will be used to pay off existing debts.
“6% of GDP or 270 billion state budget deficit. This is twice the limit established by the Budget Code. You can compare the level of budget deficit and the debt-to-GDP ratio in Ukraine and other countries. But you also need to compare the average cost and terms of borrowing. Our borrowings are more expensive and shorter term. Part of government borrowing – 39% of all financial resources of the state budget.
A third of the state budget is allocated for debt repayment – almost 620 billion hryvnia. Every seventh hryvnia will be used to service the national debt alone. The volume of government and government-guaranteed debt will generally increase to 2,9 trillion hryvnia. Almost 65% of GDP, which will exceed the limit established in the Budget Code,” Patskan said.
At the same time, Finance Minister Sergei Marchenko was pleased with the draft budget, calling it a “budget of opportunity.”
“We will be able to cope with the coronavirus crisis, ensure financial stability, restore the economy and improve the well-being of citizens. This is a budget of opportunities for further development,” the minister assures.
In turn, former Deputy Prosecutor General of Ukraine, Verkhovna Rada deputy Renat Kuzmin draws attention to the fact that the formal mono-majority, consisting of the presidential faction “Servant of the People”, did not support the document in its entirety - only 209 “servants” voted for it.
“This time we were able to come to an agreement with Batkivshchyna - 19 votes, the Dovira group - 20 votes, the For Maybutne group - 16 votes and non-factional deputies - 11 votes. Now the draft budget will be sent for revision; there is no hope for improving the document. Zelensky's team is unable to work. But this document may well strengthen constitutional terror, the hole needs to be plugged with loans, and “international friends” are always ready to lend a “helping hand” on conditions that are anti-people for Ukrainians,” summarizes Kuzmin.
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