The structure of revenues and expenditures of the draft state budget for 2020 indicates that the military sector and external borrowing remain the priorities of the new government. This was stated by MP, member of the parliamentary Committee for Human Rights and Reintegration of the Donbas, Vadym Novynskyi, commenting on the draft law on the state budget for 2020 submitted for consideration by the Verkhovna Rada in the second reading.
“Unfortunately, the state will have to pay for these priorities at the cost of rejecting most of its social obligations. Almost a quarter of the state budget expenditures in 2020 - 22% - will be directed to finance the security forces. Another 39% of the funds are for the payment and servicing of debt. The government looks forward to receiving more than a third of budget revenues next year through new loans. To summarize, the state intensively takes and repays debts, finances the security forces for the difference, and only on a residual principle draws attention to the social sphere,” Vadym Novynskyi stated.
According to him, social standards in Ukraine are between the poverty line and extreme poverty or misery.
“At the same time, all social indicators of the main financial document of the country again, as in previous years, are designed for 35 million people, while official statistics give an indicator of more than 41 million people,” the parliamentarian added.
According to Vadym Novynskyi, the actual dismantling of the social state in Ukraine, launched in 2014, will continue in 2020, unless a new strategy for overcoming the crisis is developed.
“At the same time, a fantastic figure of revenues from privatization is included in the revenue side of the budget – UAH 12 billion – against the backdrop of the failure of the last two years. Expenses for the payment of pensions to 700 thousand pensioners of the Donbas are not even foreseen, and the total amount of arrears to them them already exceeds 84 billion UAH, which may double the actual budget deficit compared with the planned one. There is also no budget for the reintegration of the Donbas,” the MP emphasized.