14:04 30.09.2016

SFS is key driver for 2017 national budget - experts

2 min read

KYIV. Sept 30 (Interfax-Ukraine) – Ukrainian experts believe that the draft 2017 national budget is honest and poor, and that the State Fiscal Service will be the key driver.

"The draft 2017 national budget is designed with difficulties, with outlays slanted towards law enforcement agencies, towards security. There are many questions about planned social expenditures. The prime minister said this himself – I would say this is a poor budget, but an honest one. We are accustomed to bad budgets, but this one is honest and was submitted according to schedule," Director of the Institute of Global Strategies Vadym Karasiov said at a press conference at Interfax-Ukraine on Friday.

He said that the focus of the government on the submission of the draft national budget according to schedule could be an attempt to divert public attention away from its contents.

"What will be the driver of the economic growth? Foreign investments? We do not have them. Consumption? We do not have it. We have only debts. We borrow. We have a debt-based economy and a debt-based budget. When there are no foreign investments and there is no solvent consumption as a driver of the economy, the [State] Fiscal Service will be in charge of meeting budget targets. It will be the driver of the budget," Karasiov said.

Gardarica Strategic Consulting Corporation expert Kostiantyn Matviyenko said that the largest outlay article of the 2017 national budget is around UAH 211 billion for payments on the state debt. The draft budget is built on the new tax base that is to be passed six months before the budget takes effect, before July, according to Ukrainian law.

He said the annulment of the special taxation regime for farmers from 2017 will result in the loss of near UAH 30 billion by them in a year.

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