As stated by MP representing Samopomich Union, Tetiana Ostrikova, this week, on Monday, the government submitted a budget resolution to the parliament with violation of the deadline. According to her, this has always been done in the best traditions of all governments: the number had been reserved, while the text of the budget resolution appeared only the next day.
In addition to procedural remarks, the MP also draws attention to the content of the resolution, which this year was introduced by the government taking into account the medium-term planning – for 3 years – and provides for budgetary, financial and tax policies of Ukraine for 2018-2020.
“So, what is waiting for us? The first thing that catches eye is an official recognition by the government that the state cannot keep a fixed national currency rate. Last year, the rate of 27.8 hryvnias for one dollar was set for 2018, while for 2019 the rate was 28.4 hryvnias. Now, in this budget resolution, for 2018 the dollar rate is set at 29.3 hryvnias, and for 2019 it is 30.5 hryvnias for one dollar. That is, the government recognizes that the state cannot control the rate.
The next issue is expenditure. Let’s have a look at the Prosecutor General’s Office alone – this year their budget is 5 billion hryvnias, and in the next year it is supposed to grow by 1.8 billion hryvnias. At the same time, spending on education remains at the same level. This is yet another indication that the current government continues to build a police state. This fact is also confirmed by the fact that the budget of the Ministry of Internal Affairs and the Ministry of Defence – which makes up 5% of GDP and accounts for 19% of the state budget revenues – contains only one figure, without any details specified as to what these funds will be spent on. And even the Ministry of Finance itself does not know their purpose, because this figure is submitted to them by the National Security and Defence Council,” notes Tetiana Ostrikova.
In addition, the budget resolution contains a significant threat to the budgetary decentralization of local budgets, “They put it mildly and call it equalization of the imbalance in the tax capacity of local budgets. In fact, the principle of who earns more will have to give away more will operate. And who does not work well will be given subsidies. Are we getting back to the Yanukovych regime, to the days when Donbas allegedly provided for the whole country and therefore received huge subsidies from the budget?”
However, the greatest indignation of Tetiana Ostrikova is because of the tax policy part, where there is no introduction of a tax on the withdrawn capital. “The government has explicitly refused to comply with the requirement of the tax code!” concludes the lawmaker.