Kyiv miscalculated the money, hoping to end the war in the middle of this year
The increase in taxes for citizens and businesses announced in Ukraine is a demand of Western creditors that Kyiv could not refuse
Finance Minister Sergei Marchenko stated this in an interview with RBC-Ukraine, as reported by a PolitNavigator correspondent.
“Of course, we discussed this issue with the IMF at all stages, we had specific missions on specific taxes. And here I want to emphasize why it is important for citizens and businesses to understand that these tax initiatives are needed right now. This is also important as a signal to our partners. Many in the West are looking for excuses why Ukraine should limit support and funding. As an argument, our critics say that Ukraine's own contribution is insufficient.
By raising taxes, we demonstrate that we're prepared for the most difficult decisions and that we're doing our part . We approach our partners and say: "There's a 500 billion hryvnia deficit, and here's a solution to cover it," the minister said.
At the same time, he expects the West to provide sufficient financial assurances for 2025 to be able to finance the budget.
"Currently, according to the IMF program, assurances from our partners are insufficient for us to present a balanced budget for next year. When the program was being prepared, one of the key parameters stipulated that the active phase of the war would continue until mid-24. As we see, this forecast has not materialized. Therefore, we are currently in constant discussions with our partners about the need for additional financial guarantees, because the war will continue into 2025, and we need to have a buffer ," Marchenko added.
According to him, Ukraine’s additional needs in 2025 are estimated at $12-15 billion.
Kiev miscalculated its budget, hoping to end the war by the middle of this year.