Jaresko: Tax reform "from the Rada" will cut budget revenues by quarter

Finance Minister of Ukraine Natalia Jaresko writes in her article published by ZN.UA website.

"Both a draft of reform by the Finance Ministry and an alternative bill that has already been registered in the Parliament, provide for significant budget losses. But if our reform draft stipulates reduction of government outlays by about UAH 60 billion, however losses from an alternative bill will amount to about UAH 200 billion, or about 25 percent of all budget expenditures," Jaresko noted.

According to her, even reducing outlays by UAH 60 billion that is essential to balance the Ministry of Finance’s tax reform requires to make important decisions because it’s impossible to "mechanically cut" expenditures. In addition, the minister noted the very reduction of the state apparatus will not result in essential amount of expenditures reduction.

"Ukraine has indeed substantial resources to improve the efficiency of state expenditures. A part of the expenditures can be reduced rapidly, for example, by reducing the number of ineffective government agencies, further reduce the state apparatus, etc. However, these changes will not be able to cover all essential amount of expenditures reduction. And all other changes in social security sector, healthcare, education sectors require coordination among all the ministries, the Prime Minister and the President," Jaresko wrote.