The Budget That The Servants Of The People Party Plans To Adopt For Zelensky Is The Budget For The Beginning Of The End Of Ukraine (videoblog)

Bobyrenko Viktor

Head of the Expert Group of the Bureau of Policy Analysis. He studied at the National Academy for Public Administration. Master of Public Administration, Political Scientist, Political Technologist. Studies the…


11 November 2020

… Although if you believe the authorities - everything goes according to plan.

According to whose plan?

The Verkhovna Rada of Ukraine adopted the budget for 2021 in the first reading. And in the power-friendly media, we see lively relations in the style: Yay! We won.

And indeed, at first glance, if the budget of 2020 was 979.5 billion in the revenue part and 1 trillion 270 billion in the expenditure, then according to the plan for 2021 we have the revenue part of the budget of 1 trillion 062 billion hryvnias as planned, and the expenditure part of 1 trillion 330 billion.

That is, the only victory here is that the budget deficit was 290 billion this year, and the budget deficit for the next year is planned to be 270 billion. Just for the record, the budget deficit was only 70 billion in the budget 2019 which Poroshenko left to Zelensky.

That is, the budget for 2019 in the revenue part is 1.007 billion, for 2020 - 979.5 billion, for 2021 it is planned as much as 1.071 billion. It seems that the government of Shmyhal under Zelensky should surpass the government of Groisman under Poroshenko.

But, we know one saying: Don't count your chickens before they hatch. The fact is that the optimistic calculations are based on the projected GDP growth of 4.6% next year. Hey, this is despite the fact that the forecasted fall this year will probably be more than 5%. These people are so optimistic that they think the Coronavirus will end on January 1st.

In fact, we have a lot of budget surprises in the expenditure part of the budget.

Well, just so we know, Volodymyr Oleksandrovych is still planning to build roads next year for the amount of 150 billion hryvnias, 20.7 billion more than this year. For comparison, only 2.6 billion is provided for the purchase of vaccines (which do not yet exist). And 7.5 billion is provided for the increase of salaries for medical workers. That’s simple. There’re no shadow paybacks from doctors' salaries, and from the roads - 20-30%.

In addition, previously 13.44% of the excise tax on fuel went to local budgets. Streets and alleys on the ground were repaired. Now all the money will be divided at the level of Kyiv or regional administrations.

Nowadays, the funds of the road subvention are mainly directed to roads between settlements, and to roads in settlements. From now on, state funds will be directed to the roads between settlements, and roads and streets within the communities are already problems of the communities themselves.

But they did not forget to include in the budget expenditures on the Office of the President, the Government and the Verkhovna Rada. Expenditures on the Office of the President have been growing like mad: 2020 - 912 million. In 2021, 1 billion 269 ​​million is planned. Vasyl Holoborodko (character from the comedy Servant of the People) clearly cost taxpayers less.

An increase in 357 million. And for the record, this is the budget of the average regional territorial community with the population of 15-20 thousand.

Similarly, the Verkhovna Rada's expenditures will be increased by 244 million, and expenditures of the Cabinet of Ministers will be increased by almost 200 million. In general, the people of Ukraine will additionally allocate plus about a billion hryvnias for the maintenance of their Servants. But that's not all.

Expenditures for the maintenance of the Prosecutor General's Office increased from 7.6 billion to 9.5 billion (+1.9 billion hryvnias). Expenditures on the SBU (Security Service of Ukraine) increased from 12 billion to 14.9 billion (+2.9 billion).

Even expenditures on the State Security Service increased by 725 million, and on the state security service by almost 70 million. From whom do they protect? Not from us?

Instead, they plan to cut spending on the Ministry of Defense by 123 million, and to increase expenses by as much as 3.8 billion (from 82 billion to 85.8 billion hryvnias) for the Ministry of Internal Affairs.

The last time when the budget of the Ministry of Internal Affairs was raised, and the budget of the Ministry of Defense was reduced happened under Yanukovych in 2013. By the way, they also reduce spending on the Ministry of Veterans Affairs. And what’s about the social sector? Oh, there is a lot of a so-called progress in general.

The payment of subsidies in the budget 2020 was expected to be 39.4 billion. And next year, poor households will receive only 36.6 billion and the reduction is 2.8 billion hryvnias.

Finally, the largest item of expenditure in Ukraine is the expenditure on the Pension Fund. The Pension Fund itself will earn about 330 billion hryvnias next year. And we will add another 204 billion hryvnias.

The budget alone provides for the amount of 160.5 billion to service the external debt.

So who voted for this bill? 209 Servants of the People voted for the budget. And these votes would not be enough. But for the first time since 2015, the Batkivshchina (Motherland) Faction has voted for the budget. Their real motivation is unknown, but we will find out. And almost all faction independent members elected by the first-past-the-post system voted, as well as Dovira (Trust) and Za Maibutne (For the Future) groups. Why altogether? And everything is simple.

Literally on the last day, an additional 7.5 billion funds were added to the budget for the needs of deputies. This is a subvention for socio-economic development, in the distribution of which the people's deputies of Ukraine take part.

That is, the majority vote was simply bought. Now their districts will receive money for repairs, construction, and purchase of equipment. And deputies will go to communities and say: I did it, kiss my hands.

Well, we have a situation where the budget is so unbalanced and inefficient that we can safely say - this has never happened before.

If 100 times more money is allocated for roads than for the development of NUS (New Ukrainian School), this is not a mistake, it is a crime. We understand why they need it. You cannot steal as much on schools, as on the roads. However, why do we need golden roads when we lose perspective?

This authority has fizzled out. Don’t believe them. Don’t be fooled.