State of Economy of Ukraine
Today there is large macroeconomic imbalance through systematic overestimation of macroeconomic indicators.
According to our data, the fiscal budget
gap in 2014 is about UAH 290 billion.
* the
budget deficit has increased actually by 3 times since 2011 (the budget deficit
was UAH 64.7 billion in 2013);
* public
debt is UAH 480.2 billion, 40.2% of GDP under the critical assumption of 60%;
* at the beginning of
this year, the state treasury has been emptied, on the account of the Treasury
was a record minimum amount of UAH 1.7 billion with unsettled accounts of almost
UAH 70 billion and some days below the critical level (remains were several
million, and this is the Treasury!)
* overpayment
of taxes in 2013 amounted to a record figure of UAH 27 billion (as of
03/01/14), and non-refunded VAT to economy is about UAH 30 billion of VAT;
* increase in wages
and social benefits were fully unsecured by real budgetary resources;
* number of civil
servants and thus also the costs for their maintenance was growing;
* there
are also a number of systemic problems in two of the largest sectors, if to
take into account financial component, "Education" and
"Health". These problems are primarily related to the inefficient use
of the resources.
In 2013, consolidated
public spending was too high and is: for education - 7.3% of GDP, for health
care - 4.2% of GDP.
* benefits and subsidy
were increased by extending the category of beneficiaries (for example, in 2010
by the Law of Ukraine "On State Budget" was expanded categories of
beneficiaries, especially to large families);
* since 2009 the
Pension Fund of Ukraine is scarce and it is covered by the state budget expense,
which has a negative impact on the economy as it takes substantial budgetary
resources from economic development;
* against the backdrop
of skyrocketing deficit of "Naftogaz of Ukraine"
natural gas prices for households have been artificially kept prices down in
recent years;
* gold
and currency reserves of the country in just the last 2 years have decreased
more than 2-fold (from 31.8 billion dollars at the end of 2011 to 15.5 billion
dollars at the end of February 2014).
Each day of delay
aggravates these problems because the Government has taken some steps that are
both emergency assistance and the foundation for Ukrainian economy.