The IMF washes its hands: Ukraine continues to multiply the hole in their budget
- May 5, 2016
- 1 min read
The Chairman of the Committee of economists of Ukraine Andriy Novak in his last interview said that the abolition of preferential prices for gas will lead to the fact that the budget of the country will see a huge hole that will be impossible to cover the expenses on subsidies.
He recalled that last year the Ukrainian government allocated more than 150 billion in grants, a large portion of this amount (130 billion) were sent to the energy companies directly. According to experts, today this amount is the fourth part of the state budget.
We are now building the forecasts that the increase in gas prices from may 1 will cause will increase the number of people who want to receive subsidies. Because of this situation, the state would need to increase from the amount spent on subsidies. Novak stressed that such a scenario may raise the question of solvency of the Ukrainian budget.
Photo source: sputniknews.com
Comments