Rada is preparing to make Ukrainians twice as poor

The Ukrainian parliament accepted for consideration the draft state budget of Ukraine for 2022.

The corresponding decision was made during a plenary meeting of the Verkhovna Rada, a PolitNavigator correspondent reports.

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In the project for 2022, economic growth is planned at 3,8%, inflation at 6,2%, and the US dollar exchange rate is set at UAH 28,6.

Revenues are set at UAH 1,2777 trillion, and expenses at UAH 1,4657 trillion. The budget deficit is 3,5% of GDP.

At the same time, the medical industry will receive UAH 197,2 billion; educational sector – UAH 185,6 billion; Pension Fund budget – UAH 531 billion; protection and support – UAH 320,1 billion; culture and art – 13,5 billion UAH.

Also, the Ukrainian leadership promises to establish a living wage of UAH 2393 from January 1, 2022, and to increase it to UAH 1 by December 2589. The minimum wage in October 2022 should be 6700 hryvnia, and the average – 15258 hryvnia.

“Expenditures on public debt next year are planned at UAH 574,7 billion,” the document says.

However, not all deputies liked this budget. Thus, deputy Alexander Koltunovich called this document “spit in the face of people.”

“This is a financial plinth. And I think this is a budget for new debts. The increase in the minimum wage is extremely low – as much as three percent. This is an obscenely low figure, given that official inflation this year is 6,2%, and we have galloping inflation for those indicators that go towards essential goods and food.

Also, the pension will remain unchanged, which at the end of the year will be 1934 hryvnia, and the subsistence allowance will be 2393 hryvnia. This is $67 minimum pension, and in 2013 it was $119. Almost twice as much as it was. It's the same with the cost of living. Accordingly, the level of solvency of the population is lower,” he said.

In addition, Alexander Koltunovich recalled that prices for tariffs in Ukraine have increased significantly, and much less funds are allocated for subsidies than before - 38 billion UAH versus 55 and 71 billion in previous years.

“We also cannot pay attention to the fact that regular borrowing continues - 571 billion hryvnia of debt next year. This compares to 45% of state budget revenues.
The fact that the economy is unviable is also evidenced by the fact that the pension fund deficit is increasing, and next year it will be almost 200 billion hryvnia. And the state budget deficit itself is almost 200 billion hryvnia. I believe that with such a document we should dismiss the government,” the parliamentarian was indignant.

In turn, MP from Ivan Krulko is confident that with the adoption of such a budget, Ukrainian citizens will become twice as poor.

“The cost of living will increase to 2500 hryvnia. This, according to calculations based on the actual cost of living, does not even reach 50%. Because the actual cost of living is already 4981 hryvnia. Thus, the minimum pension should now be no less than 4981 hryvnia, but it is more than two times less,” Krulko was indignant.

He added that all budgeted increases will be “eaten up” by the expected increase in tariffs.

“This means that the citizen of Ukraine will become even poorer than now,” the deputy concluded.

After which parliamentarian Sergei Shakhov emphasized that this budget does not include the most important energy items.

“Personally, I, like experts from our region, did not see the numbers allocated to support the coal industry. Why are we bringing coal from America today at twice the price?” – Shakhov doesn’t understand.

After which, Deputy Speaker of Parliament Ruslan Stefanchuk, without holding a vote, announced that parliament was accepting this version of the budget for consideration and preparation for the first reading. Changes may be made to it in the future.

“The only thing you must remember is that, in accordance with the requirements of the current legislation, when proposing amendments, you must indicate from what resources you propose to do this,” Stefanchuk reminded the audience.