There is no hole in budget, Prime Minister Shmyhal assures

“Our level of budget deficit is really approaching UAH 300 billion, but the figure is moderate for Ukraine and absolutely feasible for the budget. There is no cash gap. We are clearly aware of the sources to cover such a deficit,” Prime Minister of Ukraine Denys Shmyhal said in an interview with Ukrinform.

According to him, this year the situation is complicated and is linked to the coronavirus and the economic crisis.

At the same time, Shmyhal assured that “there is no hole in the budget”, noting that the planned budget deficit stands at 7.5% of GDP. “This sum has been agreed with our international partners and creditors. It is relatively low compared to some European countries where the budget deficit reaches even 10-14%,” the Prime Minister said.

Currently, the country adheres to the budget schedule set by the law.

Among the sources of coverage, Shmyhal mentioned tax revenues, dividends from state-owned enterprises, loans on domestic and foreign financial markets.

“Ukraine does not have debt threats or arrears and fulfills all its obligations to creditors on time and according to the schedule,” the Prime Minister said and added there would be no problems with finding funds.

As reported, experts' forecasts for the future situation with public finances differ from moderately positive (for the current conditions), according to which Ukraine will not go beyond the budget deficit (UAH 298 billion) with GDP drop of 5-7 % at the end of the year, to extremely negative - a big "hole" in the budget, non-payment crisis, and economic decline of 11-12% or more.

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