Ukrainian authorities have recognized a “terrible socio-economic crisis”, but are allocating new billions for the war
Kyiv, July 21 (Navigator, Mikhail Ryabov) – Ukraine today is in a state of “terrible socio-economic crisis,” admitted Verkhovna Rada Speaker Alexander Turchynov at a meeting of the parliament’s conciliation council on Monday.
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This assessment was confirmed by Finance Minister Alexander Shlapak, who spoke next, reporting a “budget gap” of 31 billion hryvnia.
“The overall situation is developing worse than we previously predicted. We expected a -3% drop in GDP by the end of the year, and already on July 1, minus 5%... The average dollar exchange rate was predicted to be 10,8 UAH, now it’s already 12,” the minister listed.
The official proposed combating the deficit by sharply cutting government spending.
Shlapak voiced an original proposal - to send employees of most regulatory bodies on leave at his own expense, banning business inspections until the end of the year.
Shlapak recalled that several weeks ago the Verkhovna Rada allocated UAH 6,8 billion for the maintenance of the so-called. ATO in Donbass, then another 600 million UAH from the reserve fund.
However, this money was allocated before July 1.
Now only UAH 520 million remains in the reserve fund, and the ATO requires 1,5 billion per month, Shlapak complained.
He said that according to joint calculations with the military, at least another 9,1 billion UAH are required for military needs by the end of the year, not counting the costs of refugees.
Ukrainian authorities acknowledge a "terrible socio-economic crisis," but are allocating new billions for the war.