Experts: Amid patriotic noise in Ukraine, money is being wasted, and the population is getting poorer

30.07.2014 00:30
  (Moscow time)
Views: 899
 
Ukraine, Economy


Kyiv, July 30 (Navigator, Vladimir Mikhailov) – Amid patriotic noise in Ukraine, money for the army is being stolen; funds from the “war tax” initiated by the authorities may suffer the same fate.

This was discussed at the press conference “Can Donbass survive without industry?” said the Chairman of the Committee of Economists of Ukraine Andrey Novak.


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He recalled that the authorities will initiate a new tax on personal income in the amount of 1.5%.

“How can you introduce a tax on a temporary phenomenon? We hope that the war is a temporary phenomenon in Ukraine,” Novak drew attention to the first oddity.

“These famous 7 billion UAH have already been allocated for the war, but neither the Ukrainian soldier nor the residents of the ATO regions feel the results of these expenses.

The army is still supported by volunteers, entrepreneurs, the soldiers themselves, parents, and relatives of soldiers. A logical question arises: where did the 7 billion allocated directly from the state budget go? If the mechanism for allocating money directly from the budget does not work, where does the illusion come from that the taxation mechanism will work? After all, with this mechanism, you must first remove this tax, send it to the budget, and then allocate it from there for the needs of the war.

I consider the current position of the Cabinet of Ministers and Yatsenyuk in particular, to put it mildly, incorrect. How can the prime minister demand another 9 billion UAH when he has not accounted for the previous 7 billion?” - said the economist.

Lyudmila Cherenko, head of the living standards research department at the Institute of Demography and Social Research of the National Academy of Sciences, agrees with this opinion. “You can’t come up with a new tax now when people don’t see that budget funds are being used effectively,” she said.

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