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The governmental draft budget has no strategy for growth – Babak

The draft law on budget of Ukraine for the next year does not provide for a national strategy for economic growth and cost optimization. This was announced from the parliamentary rostrum by a member of the “Samopomich” Union faction, the Deputy Chairman of the Committee on Urban Development and Housing, Aliona Babak.

“There is no perspective at the governmental level as to where public funds should be invested in order to stimulate economic growth. For example, 35 billion UAH are allocated in the following year for housing subsidies and benefits; 34% of households in Ukraine receive these subsidies, 34% of families have no interest to reduce their consumption of heat or gas. These people will be really protected by the state. But does it really comply with the strategy of the state?” said the MP.

“That little program to support loans for energy-efficient housing that already exists has proved to have economic growth areas. If out of the planned by the government 35 billion for housing at least 5 billion were directed to investments in energy efficiency on the terms of co-financing, this would give an opportunity to attract private funds and reduce heat consumption in 250,000 apartment buildings. Thus, we could create jobs and additional comfort and ensure the energy security of the state. And this is just one example of the entire economic sphere,” she said.

The MP stresses that the government must work systematically and look for areas of economic growth in each sector for the budget to offer a strategy of the country’s development, and not only to be the report on income and expenses.

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Alona Babak
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Economics