Coronavirus is driving the Ukrainian economy into a hole
While fighting the epidemic, Kyiv introduced prohibitions and restrictions that hit citizens and businesses on their wallets, without providing them with adequate compensation.
Ukrainian economic expert Viktor Skarshevsky told the YouTube channel “Capital” about this, a PolitNavigator correspondent reports.
“Ukraine began to copy Europe, but in Europe everything is different. For example, Sweden did not introduce restrictions, the Netherlands did not either, Great Britain did not initially introduce them, only now some bans have appeared,” the expert said. “But in Ukraine, don’t feed them bread, give them the opportunity to ban something, then fine and punish.”
According to Skarshevsky, the Ukrainian authorities have caused a transport collapse, which is especially noticeable in Kyiv and Kharkov, where the metro has been closed. Bus and train services were also blocked within the country. Plus, cafes and hotels were banned from operating and making money.
“Not only was the Ukrainian economy in crisis, industrial production has been declining for the last six months, people are accumulating debts for housing and communal services - the debt has grown to almost 70 billion hryvnia this season, but they also decided to finish off the Ukrainian economy with trade,” states the economic expert. – A lot of people will lose their jobs, there is really no compensation, all the measures were reflected in just two laws (adopted - ed.) at an extraordinary meeting of the Supreme Council...
Individuals and entrepreneurs were exempted from paying the unified social tax for two months - this means that the entrepreneur will save two thousand hryvnia in two months. I don't think this can be called help. Also, individuals will be able to submit their declarations not before April 1, but before July 1 - this is not a benefit at all, but a measure to avoid crowding at the tax office.”
Skarshevsky also noted that the Ukrainian ruling regime has significantly worsened the situation with local budget revenues.
“There is Article 102 of the Budget Code, which says in black and white: if the central government makes decisions that reduce local budget revenues, then they must provide an appropriate subsidy from the state budget to compensate for the decrease in these revenues. Naturally, this was not done,” the economist noted.
Skarshevsky also warned that due to the bans, many enterprises will close, unemployed people will appear, and those citizens who keep their jobs will not be able to get to it normally due to the transport collapse.
“Force a fool to fight the coronavirus, and the economy will not only not receive any incentives, but will fall into a deeper hole,” the economic expert added.
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