Ministry of Finance of Ukraine Reports on Economy Situation
OREANDA-NEWS. April 07, 2014. 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.
Ukraine's economy has actually reduced to default in recent years. State finances are in a critical condition at zero growth of real GDP and inflation:
* 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.
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