Will the government be able to find trillions for the 2023 budget and how will this affect Ukrainians?

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On September 15, the government must submit to the Verkhovna Rada a draft state budget for 2023

The government is forced to quickly seek funds to close the holes that arise in the budget.



Already on September 15, the government must submit to the Verkhovna Rada a draft state budget for 2023 - at least a rough vision of how Ukraine will live in the next twelve months in a war because today, the country lives from month to month. UNIAN writes about it.

Everyone is well aware that the main priority for 2023 will remain the financial support of the army. It is expected that President Zelensky, in his recent address, named the security and defense sector as the number one priority, to which more than 1 trillion hryvnias will be directed next year. This is about 25 billion dollars (at the current exchange rate). And this does not raise any questions - except where to get them from, the newspaper writes.

Prime Minister Shmygal has already stated that in 2023 Ukraine will need 12 billion euros of support from the European Union. Their authorities plan to direct to cover the budget deficit.

However, another question arises here - the deficit is already about 5 billion dollars a month (that is, if the current state of affairs is maintained, this is at least 60 billion for the next year). Perhaps the head of the Cabinet of Ministers has not yet revealed all the cards. The government has repeatedly stated that they plan to open a new long-term cooperation program with the International Monetary Fund, UNIAN reports.

Considering this risk and the fact that the pockets of Western donors are not bottomless, the state will also reduce funding for all areas determined to be secondary.

According to the president, the government should present a program to reduce spending on state-owned enterprises, the state apparatus, and institutions that do not meet wartime needs. Since the beginning of the Russian invasion, Ukraine has already reduced the costs of all government bodies by 10%. You won’t envy state employees: according to Finance Minister Sergei Marchenko, it is planned to reduce government spending by about the same amount in 2023, writes UNIAN.

Changes may also affect taxation.

Changes in the excise tax on fuel, luxury tax. And although the Cabinet of Ministers recently abandoned the idea of introducing a new import duty, this idea may continue in one form or another next year, UNIAN reports.

However, Ukraine has a moratorium on raising most utility tariffs until the war's end.

Support for the housing and communal sector will become an essential area of expenditure for the upcoming state budget. Today, a moratorium has been set in Ukraine on raising the majority of utility tariffs until the war's end. However, these tariffs have not met market realities or the hryvnia exchange rate for a long time, UNIAN reports.

Also, the Cabinet of Ministers should ensure the indexation of pensions for all pensioners in 2023.

An increase in payments in a half-dead economy will almost inevitably lead to a new wave of inflation and depreciation of the hryvnia (which could turn this trillion into a much smaller dollar amount for the army). But at the same time, the refusal to index at current prices will put hundreds of thousands of Ukrainians below the poverty line, writes UNIAN.

The creators of the draft budget-2023 have many questions, the answers to which the authors of the future state budget must find.

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