If EU does not increase financing of Ukraine, it will have to reduce financing of state programs, - "Servant of People" Pidlasa
If the European Union does not agree to an increase in financing of the state budget of Ukraine for 2024 from 9 to 18 billion euros, the reduction in financing could affect business support programs and not only.
The head of the Budget Committee of the Verkhovna Rada, Roksolana Pidlasa, said this in an interview with RBC-Ukraine, Censor.NET reports.
"No one will like what will happen if there is not enough funding. In this case, first of all, programs that can be abandoned will be reduced," she noted.
In this case, according to Pidlasa, the reduction in funding could affect business support programs, capital expenditures may be reduced, and it may be necessary to continue the redistribution of taxes in favor of the state budget.
"Discussions will continue on the redistribution of taxes from local budgets to state budgets. We have almost no recovery," she said.
According to Pidlasa, the need for international financing for 2024 is $41 billion.
"There is now a question of support from the EU. According to the Ukraine Facility plan, of 50 billion euros, direct budget assistance amounts to 39 billion euros for 4 years. If we divide these funds into equal parts, it turns out 9.75 billion euros per year. This is obviously not enough for us next year, so the government and, in particular, the Ministry of Finance are negotiating to give us 16-18 billion euros out of this 39 billion next year," she said.
According to her, the United States should allocate 8.5 billion dollars for next year. "If we don't get another $3.3 billion in funding from the United States this year, that's the hope that they will move into next year and increase the total to $11.8 billion. At least we would very much like it to be so - appropriate work is also being carried out on this issue," Pidlasa said.
She noted that "$5.4 billion will definitely come from the IMF if we meet all the conditions." Funding from the governments of the G7 countries is tied to the IMF. Canada intends to allocate 1.9 billion dollars, Japan - 4.5 billion dollars. "There will be guarantees from the British for 1 billion dollars, there will be project financing (World Bank and EIB, - ed.) for 1.5 billion dollars in the special fund," Pidlasa added.
