Teleshun Explained Ukraine's Budget Financing Problems

Yaroslav Teleshun. Photo: Facebook/Yaroslav Teleshun

Ukraine is facing problems with budget financing amid a deficit in funds. Political scientist Yaroslav Teleshun noted that the situation is connected not only with the defense budget but also with other areas of state spending. The suspension of key expenditures could affect the implementation of important state projects, in particular construction, restoration of facilities, and measures to protect energy infrastructure.

Teleshun spoke about this on the air of Rano.LIVE, reports Novyny.LIVE.

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Ukraine is facing problems with budget financing

“Indeed, stopping key base-forming articles of Ukraine’s expenditures is a stop, indeed, of certain actions aimed at resilience, meaning fortifying energy facilities mentioned earlier, and construction, restoration of some communal, state facilities,” Teleshun said.

The expert also drew attention to the political component of the situation. According to him, the government, parliament, and the president are trying to shift responsibility onto one another because of budget problems and international financing.

“And now there is exactly a political process underway, because we see statements from the heads of the profile committees, the financial committee regarding the problems that exist, and each side tries to shift as much responsibility as possible onto the other,” he noted.

Teleshun links part of the problems to Ukraine’s access to international financing. In particular, he recalled the non-fulfillment of certain requirements within the Ukraine Facility mechanism and the conditions of the International Monetary Fund, to which funds are tied not only to the IMF but also to the European Union.

According to him, the situation is the result of the responsibility of several parties—the government, the parliament, and the president. At the same time, financing constraints could have consequences for various areas of budget expenditures.

As reported by Novyny.LIVE, 17 in September the company “AvtoStrada” announced the forced suspension of works at all of its facilities. The company owner, Maksym Shkil, stated that the state halted funding of all capital expenditures without warning or discussion.

As reported by Novyny.LIVE, 16 in September a representative of the Batkivshchyna faction, Vadym Ivchenko, warned of the critical depletion of Ukraine’s internal resources allocated to the needs of the Ministry of Defense. He said that due to a significant budget deficit, even basic payments to Ukrainian defenders were at risk.