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6.1.2 Budget dynamics - specific issues...
Ukraine needs to return to the pre-war tax system. Minister of Finance Serhiy Marchenko believes that Ukraine should return to the pre-war tax system. "I believe that Ukraine needs to return to the pre-war tax system. We need to decide what we want in general: do we want to win the war? Or do we want to just help businesses? We helped businesses already. For the first three months, businesses had the opportunity to take advantage of this support. Now we also need to support the state, which finances the army. And these expenses are very significant," Marchenko said. He noted that the monthly state budget deficit currently reaches $5B. The primary sources of funding, in addition to taxes, are military bonds and the government's work with international partners.
During the three months of full-scale war, the NBU printed UAH 120B.
Ukraine needs $5B a month for the budget to function, and in three months, the National Bank of Ukraine (NBU) has "printed" UAH 120B ($4.1B) for this purpose, reported the Ministry of Finance. Since the beginning of the full-scale war, the state’s sources of funding for the budget have been primarily military bonds and international financial aid. In just over two months, Ukraine has received $13.8B (UAH 404.2B). Thus, the budget has been financed primarily by the NBU, and the regulator decided to print UAH 120B through the redemption of military bonds. Therefore, the NBU issued UAH 50B in May, exactly as much as in April. Another UAH 89.9B came from the sale of military bonds to investors. In addition to that, UAH 41.3B also came from the International Monetary Fund in the form of a loan.
37 UKRAINE Country Report XXXX 2018 www.intellinews.com