Efficient public debt management, reducing the debt-to-GDP ratio is key to the stability of the economy and its sustained development. Prime Minister of Ukraine Volodymyr Groysman stressed during a meeting of the Strategic Committee of the Government. One of the topics of the meeting was the current state debt situation and further steps of the Government, in particular, the Ministry of Finance, in this area.

The Head of Government stressed that in a few years - from 2008 to 2013 - the national debt was inadequately accumulated. "And today it is a huge burden that diverts the resource from rapid changes", said Volodymyr Groysman. The PM reminded that this year, one third of the budget will be spent to pay off debts. "The main task is to maintain the stability that we have provided for three consecutive years. It's rather hard to ensure. It is clear that everyone would like to have higher salaries, higher pensions, and better infrastructure. But we are bound through the debt. We should pay it off. So professional and efficient government debt management is a matter of stability. GDP should grow, and the debt should reduce", added the Prime Minister.

During the meeting, Government officials noted that since 2016, the amount of the national debt has been steadily declining and today it has reached the secure limit. The landmark is the reduction of the debt-to-GDP ratio to 50.5% in 2019 and to 41.4% in subsequent years, as well as the maximum use of "cheap and long-term" borrowings.

"This year and the next two years are extremely complex in terms of debt service and paying off. But we have professional approaches to planning, including strategic budget planning. We need to concentrate on reducing the debt (to GDP). This is our strategic goal", said Volodymyr Groysman.

Background

The Cabinet of Ministers of Ukraine established the Strategic Committee on January 10, 2019, at the first Government meeting of the current year. It was designed to formulate policies and foundations for Government decisions in the context of Ukraine's transition to three-year budget planning. The responsibilities of the Committee are to consider, shape and implement the priority reforms of the Cabinet of Ministers; to elaborate conceptual, strategic and program documents of the Cabinet of Ministers, as well as to approve policy proposals of the Ministers. The Committee shall also discuss draft regulations of the Cabinet of Ministers on approval of priority action plans of the Government for the relevant year and reports on their implementation; reports of ministries and other central executive bodies on implementation of priority reforms of the Cabinet of Ministers in relevant areas of state policy; draft laws on the State Budget of Ukraine for the relevant year and amendments thereto. The members of the Committee are all members of the Government of Ukraine.

The previous meeting of the Strategic Committee was devoted to the issues of reforming the emergency medicine and development of vocational education.