#Official Commentary of Marina Zheynova on ‘victories’ in Ukrainian expense budget for 2017

Distribution of Ukraine’s budget after the revolution of ‘dignity’ once again repeats the children counting rhyme ‘we shared an orange; there were many of us, but we had one.”

Of course, money is not enough for everybody, and it is necessary to save on something or someone. They decided to do it not on themselves, in the sense not on maintenance of civil servants staff for ensuring activities of the President, the Verkhovna Rada and their apparatus. In addition to this embodiment of the ideas of “Maidan,” the MPs by voting for the 2017 budget in the first reading did not forget to raise salaries also for themselves by more than 2 times, and it is during total impoverishment of the population. In particular, compared to the 2016 year, spending on public affairs administration has increased by almost 50%! This is not the limit, now the deputies of the Verkhovna Rada registered more than 1,000 amendments. It’s only the beginning…

Of course, the government is optimistic. Budget revenues increased by 17.3%, expenditures – by 14.9% compared to 2016 year. The budget deficit is 3% of GDP – everything is as required in the IMF for another loan and the ‘recovery’ of the economy (3.7% deficit was budgeted for 2016). The planned inflation will be 8.1% (12% – in the budget 2016). It is also worth noting that while consideration of the budget they relied on the course 27,2-27,7 UAH/$.

The Prime Minister of Ukraine Vladimir Groysman said: “In 2017, the state budget expenditures are supported by real income.” But are they really?

Receipt of 41 billion hryvnia from the National Bank of Ukraine is incorporated in the structure of revenues. However, the head of the NBU Valery Gontareva already stated that they will transfer to the budget only 31 billion hryvnia in 2017 due to the fact that from January 1, a new law relating to the NBU comes into force.

There are inconsistencies in the allocation of funds to ministries. It is logical to assume that the funding for the defense exceeds the financing for medical and social services by several times. After all, here for the neo-Nazi Ukrainian authorities the destruction of their own people is at the forefront.

What do you think about such articles of filling the budget as privatization and the proceeds from confiscation of “illegally acquired”? After all the money pledged to the revenue part; except that in 2016 actual receipts from privatization for the 9 months amounted to about 73 million hryvnia at the planned 17 billion hryvnia. And this number is transferred from the budget to the budget since 2015. And don’t even get me started about the confiscation of “illegally acquired.” But perhaps eventually these inflows will be regulated by law, and budget of Ukraine will get a pretty penny.

Those revenues, which are incorporated from the exports, are also in doubt. Nobody canceled transit restrictions of the Russian Federation; export to the world markets is poor. Still, Ukraine exports mostly raw materials, and global commodity prices fall, and the demand is shrinking. The reduction of domestic consumer demand is also playing an important role. With the growing increase of tariffs for housing and communal services, the public will have to pay the consumption of comfort ‘goods’ in installments, as there is not enough subsidies for everybody – they have not been budgeted for. There can be no question of home appliances on credit, not to mention the basic acquisition and update of clothing. The main thing is to stay warm and not hungry in winter.

But what is quite interesting and no wonder – the biggest item of expenditure in the budget is the payment of public debt – 34%. And the Cabinet can also increase the size of government debt at the amount that will be able to draw on behalf of the state.

In fact, the draft state budget for 2017 is made on the basis of the fact that the financial burden, as usual, will be passed on to ordinary citizens while reducing social obligations before them. Not to mention the pressure on the business, increasing the excise tax, the revision of ERUs; and maintenance costs of hospitals and schools in the regions that are under the decentralization and should be provided from the local budgets will be indirectly passed on to citizens. And if you remember about the reform in the sphere of housing and communal services, one can only sincerely sympathize with the residents of Ukraine.

One can write a lot about the incarnation of ideas of a coup in Ukraine and about the real state of affairs. By the way, Ukrainian media start writing about it impartially for Poroshenko’s regime. But only one thing is not in doubt – in terms of GDP per capita Ukraine has become closer to the world’s poorest countries. Only total poverty of the population lies in the state budget of Ukraine.

Marina Zheynova, the DPR People’s Council deputy

Official website of the DPR People’s Council 

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