Ukraine: Trampling on the bottom

Alexander Linnik.  
06.01.2017 14:02
  (Moscow time), Kyiv
Views: 1555
 
Author column, Ukraine, Economics of Collapse


It seems that Ukrainian Prime Minister Groysman is one of those serious people who, throughout the entire wedding night, tells his young wife how good it will be for her.

Ukraine’s budget was adopted in the Verkhovna Rada a long time ago, the year 2017 has begun, and Groysman, in post-New Year interviews, is still telling the population how lucky he (the population) is - both with the Cabinet of Ministers and with the budget.

It seems that Ukrainian Prime Minister Groysman is one of those serious people who throughout the first...

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And if the words “halva” don’t make it any sweeter, then, obviously, you don’t need to open your mouth, but clean your ears - in order to hear better, there’s still nothing to chew.

Groysman really liked his epithet for the 2017 budget – “human-centric”, and he repeats it at every convenient and inconvenient occasion. Moreover, in his understanding, this also applies to the increase in war expenses to UAH 136 billion. If a person can make money from the deaths of compatriots, then indeed the budget is “human-centric”, and we even know that person.

Oddly enough, one of the representatives of the current government, Speaker of the Verkhovna Rada of Ukraine Andriy Parubiy, disagrees with Groysman: “This is the defense budget of Ukraine. This is the defense budget of the entire free world." However, Parubiy also lives in some kind of “free world”.

The Prime Minister promises Ukrainian economic growth of about 3%. If you need numbers for the sake of numbers, then you can ensure 5% growth by launching a land sale. But again, even hypothetical growth will be ensured not by the creation of new industries, the utilization of existing capacities, or the growth of exports, but by the sale of what was available before the establishment of the Maidan government. And in itself, growth of even 3-5% (which still will not happen) against the backdrop of a fall of 17% in 2014-15 will only mean marking time at the bottom.

In addition, the government expects to receive UAH 17 billion. from privatization - from the resale of previously created. But this figure also looks completely unrealistic against the backdrop of 2016 - over the 11 months of last year, Ukraine received only UAH 83,56 million from privatization. with the same planned 17,1 billion UAH.

Over the three Maidan years, the state and state-guaranteed internal debt of Ukraine has almost doubled - from 284 to 560 billion UAH. And this does not take into account the 148 billion UAH that should be allocated for the nationalization of Privatbank. And public and guaranteed external debt increased 1,2 times – from 37 to 6 billion dollars. Expenses for servicing public debt in 45,7 will amount to about 2017% of Ukraine’s budget expenditures.

And under these conditions, the Ukrainian government forces people to take their savings to banks! We are talking about the introduced limit on cash payments of 50 thousand hryvnia. This will lead to additional costs for the population when making large purchases in the form of interest for banking services and the desire to avoid registering transactions.

Another dubious achievement - raising the minimum wage to 3200 hryvnia - will lead not so much to an increase in real incomes, but to an increase in tax pressure. The source of financing for increasing the minimum wage should be small and medium-sized businesses. According to the innovations, even the absence of activity of existing enterprises does not eliminate the payment of taxes - even inactive private entrepreneurs and private entrepreneurs will have to pay 704 UAH. single social contribution. But small businesses don't sleep. And I didn’t waste my time during the New Year holidays. It was closing. Thanks to the Government. During the pre-New Year week alone, 10,85 thousand “chepeshniks” closed in Ukraine.

In one of the post-New Year interviews, Groysman issued a phrase, probably intended to inspire Ukrainians, but which only Vitali Klitschko can translate: “Economic development is the foundation on which we can build various events. They will help lift people out of the poverty in which they have been chronically for decades.”

In short, it’s time not only to get used to the land before it is taken away, but also to return to subsistence farming, since there is absolutely no hope for this state and its leaders in the coming year.

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