Semenukha: Changing the budget by more than 10 billion hryvnias at the end of the year is a verdict to the government that is not able to manage the state

“Introducing changes in the budget of the current year 3 weeks before the end of the year is nonsense in the history of modern politics,” said MP Roman Semenukha commenting on the bill submitted by the Cabinet of Ministers on changes to the budget of the current year.

Among other things, the draft law provides for an increase in the Pension Fund deficit by almost 11 billion UAH, which cannot have a positive influence on the Ukrainian economy. The lawmaker says, “In the three-year budget resolution submitted by Hroisman’s government last year, PF deficit made up 139 billion hryvnias. Back then the stabilization of PF deficit was presented as the main problem solved when adopting the so-called “pension reform”. As a result, the government is now taking an unprecedented step and is proposing to increase the PF deficit to 150 billion UAH.”

The faction of Samopomich Union has repeatedly noted that the budget is calculated on the basis of some unrealistic macroeconomic indicators. As a result, the plan to collect Unified social tax is not being implemented today. Even those own revenues to the PF that were planned are actually on the verge of collapse.

Roman Semenukha has also noted that in the 2019 Budget Law of Ukraine, the Pension Fund deficit remains the biggest black hole in the Ukrainian budget and reaches the record high 167 billion UAH.

“But who’s paying for the party? The Cabinet has the practice of correcting budget errors in manual mode. Instead of allocating the remainder from inefficient programs on true needs in the next year, the government is patching up holes. And this is vividly demonstrated by the much spoken of support for agrarians, which in fact proved to be ineffective. Because farmers simply had no access to this money, it was left unused,” stresses the deputy

The government suggests reducing the funding for livestock support programs by almost 1 billion hryvnias; by almost by 850 million hryvnias – the financial support of farms, by 250 million hryvnias – the support of agricultural producers.

The Cabinet of Ministers stubbornly continues to expect some unrealistic figures from privatization. This year, this figure reaches 21.3 billion hryvnias, and in the draft changes to the budget of the current year, the government finally partially recognizes this mistake and suggests reducing the expected revenues from privatization to 18.8 billion hryvnias.

At the same time, medical and educational subventions remain underfinanced, and in most cases, these are local budgets that are forced to cover these expenses. At the same time, in the next year, 83 billion UAH are provided for Ministry of Internal Affairs, which is 25% more than this year. Financing of the Prosecutor’s Office will grow by 1.5%, of the Security Service – by 17%.

“In fact, this draft of changes to the budget of the current year is the verdict of the government. The Cabinet of Ministers is not able to either balance the state budget of Ukraine or calculate risks or manage the state. Ukrainians should change this next year by choosing a new President and a new Verkhovna Rada,” Roman Semenukha sums up.

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