The state budget deficit for 2022 is planned at 3.5% of GDP, but it will increase several times, the minister said.
Because of the war in Russia, the 2022 budget deficit in March reached $ 2.7 billion and its growth rate will continue to increase. Finance Minister Sergei Marchenko spoke about the situation in the Ukrainian economy in an interview with the Financial Times.
“We are in a state of great stress, in the worst condition. This is a matter of our country’s survival … If you want us to continue to fight in this war, to win this war … so help us,” said Marchenko.
He said the estimated infrastructure losses due to the war had risen to $ 270 billion, while at the end of March the figure was $ 120 billion. More than 7,000 residential buildings were destroyed or damaged. About 30% of Ukrainian businesses have stopped, 45% are partially employed. Electricity consumption dropped 35%, and trade dropped sharply.
According to him, the government reduced state budget spending by more than $ 6 billion, but it was not enough, as revenues were only slightly higher than half of pre -war revenues.
“We can reduce some costs, but it won’t cover the shortfall,” Marchenko stressed.
The head of the Ministry of Finance recalled that the state budget deficit for the year is planned at 3.5% of GDP, but it will grow several times depending on the duration of the war.
At the same time, Ukraine will continue to pay on public debt to avoid default or restructuring.
Speaking about the provision of US military and humanitarian aid to Ukraine and other countries that have suffered from the war in the amount of $ 13.6 billion, Marchenko stressed that Ukraine will not receive a cent. “This is not a direct budget support. We cannot use it to fill the deficit,” the minister said.
According to the Cabinet of Ministers, the budget was over -filled in the first quarter, and a sharp decline in revenues is expected in the second quarter.
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Source: korrespondent
