The Verkhovna Rada told how it plans to cover the budget deficit of UAH 500 billion

Tax increases will not solve the issue of the budget deficit of UAH 500 billion, but there are other tools that will allow this to happen, including domestic borrowing and restructuring of the public debt in the context of paying the relevant interest and partial repayment to Ukrainian creditors. This was stated by MP, member of the Budget Committee Lesia Zaburanna during a telethon, UNN reports.

“When the budget for 2024 was being planned, the calculations, as the Prime Minister of Ukraine said, were based on the position until September 2024. We all believed and still believe in the end of the war and the coming of victory in our country. That is why this hole of 500 billion hryvnias appeared. I agree that taxes alone do not solve this issue, but there are other instruments. One of these large-scale instruments will be domestic borrowing – government bonds, which will cover more than UAH 200 billion. The second one is the successful negotiations of our government on the restructuring of the state debt in the context of paying the relevant interest and partial repayment to our creditors. We will receive more than UAH 100 billion through these agreements with international partners,” Zaburanna said.

Recall

Finance Minister Sergiy Marchenko saidthat Ukraine’s budget deficit has increased as of the end of July, noting that the total need is up to $12 billion.

Ukraine received support from bondholders in restructuring its external private debt. International investors, who hold more than 97% of the country’s international bonds worth more than $20 billion, will exchange their securities for new bonds.