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Automatically translated version. May contain inaccuracies compared to the original.
Despite the state budget deficit, the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, does not see grounds for cutting social payments, including pensions.
As Dilo writes, this was reported by the press service of the Verkhovna Rada.
According to Hetmantsev, Ukraine's financial situation today is worse than it was at the beginning of the 2022 year after the full-scale invasion. Russia is carrying out massive attacks on energy infrastructure and on our economy in general, major logistics disruptions have arisen, and the fuel crisis in the Middle East also affects the overall situation. All of this is hitting our economy, which has created a large state budget deficit.
"We need to calm people. I do not see grounds for cutting social payments, including pensions. Recently the Verkhovna Rada voted on certain decisions that will allow us to receive the next tranches from partners. I think that in October parliament will adopt the necessary documents and we will receive the money," the MP noted.
He recalled that pensions are being indexed and certain payments are increasing. For example, from 2027 year payments to families with children with disabilities will increase several times.
Hetmantsev emphasized that since the start of the full-scale invasion in 2022 year the state has been fully fulfilling all social obligations and making all payments on time.
"We take care of the 'social sector,' which is second only to security and defense. Although the situation today is extremely difficult, we will do everything possible so that there are no delays in financing the 'social sector'," the MP stressed.
According to him, the Cabinet of Ministers now needs to abandon ineffective programs.
What is known about the budget deficit
10 September, Minister of Finance Serhii Marchenko said that due to a liquidity shortfall the government is already limiting state expenditures. Less urgent payments were planned to be postponed to December, and construction programs — suspended until sufficient funding appears. It had also been reported earlier that capital expenditures were moved to the end of the year due to delays in international aid.
Ukraine asked allies to additionally finance about $27 billion of defense needs, but in the European Union they want to first receive a clear explanation of how the deficit formed and what exactly the funds are needed for.
The EU is currently trying to understand where the giant hole in the budget came from and whether Ukraine really needs the full amount it requested. In Brussels they do not understand who is responsible for the sharp rise in the budget deficit.
Prime Minister Serhii Koretskyi said that the situation with public finances is already close to critical, and Ukraine risks losing a significant part of the $29,5 billion of planned international financing if the Verkhovna Rada does not adopt the necessary bills within the set deadlines.
Recently, Minister of Finance Serhii Marchenko warned that there could be delays in wages in the public sector if inflows to the single treasury account decline.
Due to the budget deficit, Ukraine will fund only three areas: social expenditures, public sector salaries, and maintenance of the military.
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