The deficit of the State Budget of Ukraine for 2020 is 2% of GDP – this indicator is better than in many EU countries. Executive Director of the Center for Economic Strategy Hlib Vyshlinsky drew attention to this in an interview with Hromadske radio.
“This is adequate for Ukraine for which it is very expensive to borrow in order to finance the budget deficit,” he says.
The subsidy funding was cut in the budget for the next year, but there are no significant changes in the structure of expenditures. In particular, law enforcement agencies are over-funded. Higher education is also being overfinanced, as today there are 40% fewer students than ten years ago.
“Those studying today were born during the worst demographic situation. Accordingly, we just spend extra money on students whose numbers are much smaller,” Vyshlinsky said.
At the same time, insufficient funds are allocated to health care and infrastructure – construction and repair of roads and pipelines.