A budget shows more than just sources of income and its assignation. It should be based on the comprehensive analysis of the state’s needs. The adequacy of the Ukrainian budget in 2018 is demonstrated in our new infographic.
Ukraine spends more than receives
This year the budget’s deficit will be 2,3% of the GDP. It’s not a disaster, but the problem is that this situation repeats every year. The last time when the budget was proficient was in 2002.
Taxes are the main source of revenue for the state budget, with value-added tax constituting half of the share.
Key expenditure lines are allocations to local budgets and servicing of the state debt.
Forecasts related to the economic situation in the country don’t match the reality
Forecast of the Ministry of Finance is more optimistic than the real situation. The inflation and unemployment rates are higher while the pace of GDP increase is lower. Either the Ministry of Finance poorly conducts the analysis or provides calming forecasts on purpose. In any case, it leads to the inaccurate evaluation of the country’s potential. It results in constrained access to loans and absence of the economic development.
Funds are spent for the money collection
Key budget expenses are connected with the collection of taxes and treasury administration. It means that the major part of funds is spent for the process of money collection by the government.
You can learn more about the budget from an infographic below.
Furthermore, today we publish a comprehensive research “Ukrainian Budget 2018”. It provides a detailed overview of particular expenditure lines and shows how effective is the budget. A separate page is dedicated to violations made during the adoption of the budget, its risks, and disadvantages.
You can download the analysis by clicking on the banner.