Real budget revenues of Ukraine are declining despite the declared growth
The GDP growth included in the Ukrainian budget turned out to be lower than the indicators that the president and prime minister had previously spoken about, which means a reduction in real income.
This opinion was expressed at a press conference in Kyiv by economist Viktor Skarshevsky, a PolitNavigator correspondent reports.
“If you look at the draft budget that was submitted to the Verkhovna Rada, this is the draft budget of the Groysman government with all the ensuing consequences. The priorities are the same - the security bloc plus roads, which was also the priority of the previous government. The social component is in tenth place.
And since this is the draft budget of the Groysman government, so are the macro indicators of the Groysman government. Next year, GDP growth is expected to be 3,3%, despite the declarations of the president and prime minister that growth will be 5,7%. And inflation is set at 6%. That is, nominal budget revenues would have to increase by 10% taking into account inflation. But in fact, 5% is included. This means that in real terms, taking into account inflation and GDP, real budget revenues will decrease. Minus 5%.
Why? I would understand if they at least lowered tax rates. But on the contrary, it is planned to increase them. Or if they gave some benefits to business. But all this is missing. They are probably counting on further shadowing of the economy,” he said.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.