PM of Ukraine Denys Shmyhal: “Almost 90% of all taxes and fees paid by citizens and businesses next year will be directed by the government to our army and the country’s security. This is the reality of the budget for 2023, which was adopted this week.”
If Ukraine goverment goes with this option there will be nothing left for the social sphere and pensions given a budget deficit of 43%.
Rybar's analysis, I quote:
The Verkhovna Rada has adopted a government budget for 2023. The lion's share of spending will go to ensure the defense and security of the state, as well as maintaining the civil service.
In 2023, there will be 1.3 trillion UAH ($36B) in revenues and twice as much in expenditures. The budget deficit will be covered by foreign aid, which, according to preliminary estimates, will amount to $38 billion.
1.14 trillion hryvnias ($32B) will go to the defense sector. Spending on the army and military operations will basically eat up all the revenues in the budget.
75 billion UAH ($2B) will be spent on road construction and repair under the Big Build program. The project has often been criticized for rampant theft and corruption. It is overseen by President's Office deputy head Kyrylo Timoshenko - so they will not give up this line item.
Ukrainian political parties will receive 519M hryvnias ($14M). Most of it will go to "Servant of the People" deputies. They are the ones who in the majority voted for this version of the state budget.
Poverty line and minimum wage are unchanged: 2.6K hryvnia ($72) and 6.7k hryvnia ($185) per month respectively. Also, all social benefits will be frozen, except for pensions, which in March the government promised to index.
Only 35.5B hryvnia ($1B), is allocated for the needs of the country's reconstruction fund. This paltry expenditure compared to the other items shows that the country's recovery is the Ukrainian authorities's last priority.
The approved draft state budget shows the huge financial dependence of Ukraine on subsidies from Western countries, without which the country cannot cope at all.
At the same time, a significant part of the allocated funds is aimed at maintaining the armed forces and the Ukrainian military-industrial complex in order to prolong the military conflict with Russia, but in no way to help the people of Ukraine.
This shows the current attitude of not only the Ukrainian government to its people, but also the collective West as a whole. And the low funding of social programs and the suspension of payments will hit the population even harder.
For the Ukrainian leadership, social problems are not at all important. With rising prices and inflation, along with the "frozen" government support measures, the country faces a serious social and humanitarian crisis.
Ukrainian President Volodymyr Zelenskiy this week told international donors that Ukraine needed about $55 billion - $38 billion to cover next year's estimated budget deficit, and another $17 billion to start to rebuild critical infrastructure, including schools, housing and energy facilities.
According to IMF and World Bank forecasts 25% of Ukrainians would be living in poverty by year-end and the number could rise to as high as 55% by the end of next year.