2022-05-16T16:46:00+03:00 Economy 2023-11-15T05:17:05+02:00

Ukrainian news

Ukrainian news

If War Drags On For More Than 3-4 Months, Authorities Can Take "Painful Measures" To Keep Economy

If War Drags On For More Than 3-4 Months, Authorities Can Take "Painful Measures" To Keep Economy

Finance Minister Serhii Marchenko admits a sharp increase in taxes, a reduction in government spending and nationalization in the event of a protracted war.

He said this in an interview with The Economist, Ukrainian News Agency reports.

According to him, if the war drags on for more than 3-4 months, the authorities can take "painful measures" to keep the Ukrainian economy afloat.

Among such measures, he named a sharp increase in taxes, spending cuts, nationalization.

According to the Minister of Finance, Ukraine is already losing USD 5 billion every month, which is 5% of GDP.

The burden on the budget is the salaries of the military.

In the second quarter of this year, Ukraine collected grants totaling only about USD 4.5 billion against a budget deficit of USD 15 billion.

As Ukrainian News Agency earlier reported, the Office of the President reported that in the 2nd quarter of 2022, a significant underexpenditure of the state budget is predicted and a temporary reduction in social spending is possible from May.