Ukraine fails to implement the budget
Ukraine's state budget is calculated taking into account an expected GDP growth of 4,6%, but there will be no such growth next year.
Economist Andrei Novak stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“The budget is designed for a forecast of GDP growth of 4,6%, which will definitely not happen in 2021. Even the world's leading economies will not experience such growth. And our government is setting 4,6% despite the fact that we do not yet know how the current 2020 will end, or with what minus we will end it. The fact that we will finish it with a minus is no longer in anyone’s doubt. The only question is how big it will be.
So far, the decline in GDP is within 7%. But the second quarter showed a drop of 11,5%. With such a collapse, it is an illusion to expect that next year the Ukrainian economy will suddenly begin to grow very dynamically by 4,6%. Unfortunately, the draft budget for 2021 is built on this illusion. This means that it is completely unrealistic. There won't be that kind of growth. This means that both the income and expenditure side are again at risk. I would even say a guarantee of non-compliance,” the economist said.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.