Last year, producers became the main donors to the budget, providing 16.7% of all revenues – Ministry of Economy

The impact of public administration on GDP increased significantly from 6.2% to 21.4%. Last year, producers became the main donors to the budget, providing 16.7% of all revenues. This was reported by First Deputy Prime Minister – Minister of Economy of Ukraine Yulia Svyrydenko, reports UNN.

To begin with, what is a war economy? In short, it is the actions that the state takes to mobilize its economy and resources to effectively counter military and security threats. So what have we done, and what has really helped us all this time? The most important thing is that the state has become one of the main customers and investors. Government consumption increased from 17.7% (2021) to 41.9% (2023) 

She emphasized that this means that the impact of public administration on GDP has increased significantly.

To be precise, from 6.2% to 21.4%. Such an impact in a crisis is important, because the state compensates for market failures. The leading industries that contributed to economic growth have changed. For example, the defense industry has strengthened: its capabilities have increased 35 times! And its share in industry increased from 0.3% (2021) to 2.3% (2024). As a result, the development of the machine-building complex, which is needed for the army and reconstruction 

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Svyrydenko emphasized that Ukrainian business is one of the foundations of budget stability.

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90% of entrepreneurs who stopped working since the beginning of the invasion are working again. And these are jobs and revenues to the budget. Last year, producers became the main donors to the budget, providing 16.7% of all revenues. Also, Ukrainians themselves spend less on non-essential things, so the share of consumption in GDP fell by 9.1 percentage points. Of course, it should not be excluded that one of the reasons for this decline is migration 

According to her, exports are important for the economy.

Of course, if we talk about what is important for the economy, it is exports. Due to various obstacles, such as the blockade of sea routes, it fell: 40.7% of GDP in 2021 against 28.3% in 2023. However, thanks to the maritime corridor and the development of transport infrastructure, exports increased by 12.1% last year! It is impossible to describe all the processes in a short thread, but to sum up, the state invests in the defense industry, reconstruction and support of producers, and business adapts and fills the budget