Yaresko: there will be no increase in social payments
Ukrainian Finance Minister Natalia Yaresko, an American, has refused to increase social benefits for Ukrainian citizens, Interfax-Ukraine reports.
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The growth in state budget revenues in recent months is associated mainly with the devaluation of the hryvnia, which entails a corresponding increase in state budget expenditures, and there are still no funds to increase social benefits, said Finance Minister Natalia Yaresko.
“We don’t yet have the opportunity to increase budgetary social payments, if it does, then I’m ready,” the head of the Ministry of Finance told reporters on the sidelines of a round table organized by the American-Ukrainian Business Council (USUBC) in Kyiv on Thursday. The refusal was received despite the fact that the country's budget revenues have increased. The growth in income, however, is associated only with the devaluation of the hryvnia, and not with economic growth. The devaluation in turn led to increased costs.
Moreover, Yaresko admitted that the decline in the Ukrainian economy, even according to official data, is at least 15%.
As reported, Ukraine's 2015 state budget is based on an optimistic scenario, projecting a 5,5% decline in GDP, with inflation at 26,7% and an average annual exchange rate of 21,7 hryvnias per dollar. The National Bank and the government have already downgraded their GDP decline forecast to 7,5%, a figure confirmed by the World Bank. Inflation growth is also significantly higher than official data.
In addition, inflation accelerated to 10,8% in March, to 14% in April, and as a result, based on the results of the first four months, it amounted to 37,1%. In annual terms, at the end of April it reached 60,9% - a record high level since September 1996.
Yaretsko : There will be no increase in social benefits