Ukraine’s state budget deficit of 6% GDP will result in public debt increase and its expensive servicing, Deputy Director of the Kyiv-based Center for Economic Strategy (CES) Maria Repko has said.<\/p>\n
“Several things at once make this budget dangerous for macroeconomic stability. Firstly, the budget has a deficit of UAH 270 billion, at about 6% GDP, which is a very large amount,” Repko said on the CES website.<\/p>\n
“Financing such a deficit will result in public debt increase and its expensive servicing. Since there will be a lack of cheap funds from institutional creditors to cover the budgetary deficit and still an obligation to pay off the last year debts,” she added.<\/p>\n
At the same time, according to the expert, the inflation forecast of 7.3%, on which the state budget was drawn up, greatly exceeds the actual inflation (2.4% in August).<\/p>\n
It is therefore highly likely that the government may not receive revenues that it is now counting on, the expert explained.<\/p>\n
She also pointed out that the minimum wage increase in Ukraine results in a number of risks and economic incentive distortions.<\/p>\n
“This leads to tax burden and budget expenditure increase, to distortions of incentives to invest in consumption (for mainly imported goods) and a new round of the problem of simplified wages for public sector employees, when the minimum wage for an imaginary nurse is slightly lower than that for a surgeon or when the wage of a cleaner equals to that of a university lecturer,” Repko explained.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ukraine’s state budget deficit of 6% GDP will result in public debt increase and its expensive servicing, Deputy Director of the Kyiv-based Center for Economic Strategy (CES) Maria Repko has said. “Several things at once make this budget dangerous for macroeconomic stability. Firstly, the budget has a deficit of UAH 270 billion, at about 6% […]<\/p>\n","protected":false},"author":1,"featured_media":15197,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[187],"tags":[],"experts":[172],"news_type":[139],"class_list":["post-15196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-experts-in-the-media-en","experts-maria-repko","news_type-we-are-in-media"],"acf":[],"_links":{"self":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/15196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/comments?post=15196"}],"version-history":[{"count":0,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/15196\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media\/15197"}],"wp:attachment":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media?parent=15196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/categories?post=15196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/tags?post=15196"},{"taxonomy":"experts","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/experts?post=15196"},{"taxonomy":"news_type","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/news_type?post=15196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}