Presidential Office: Ukraine may temporarily cut certain social expenditure

In the second quarter of 2022, a significant underperformance of the state budget is expected in Ukraine and certain social spending may be temporarily reduced, starting from May, Report informs referring to UNIAN.

President of Ukraine Volodymyr Zelensky held a meeting with members of the Cabinet of Ministers and representatives of the Presidential Office on the state budget execution for the current year and the imposition of an embargo on trade with Russia, according to Ukraine’s Presidential Office.

Prime Minister Denys Shmyhal said that in the first quarter, the state budget was implemented by 110%. This was facilitated by the results of the first two months of this year and advance tax receipts.

In the second quarter, as a result of the military invasion of Russia, a significant underperformance of the state budget of Ukraine is predicted, the president said.

The meeting participants discussed possible sources of filling the treasury. In particular, these are donor assistance, special drawing rights of the IMF, etc.

In case of an unfavorable development of events, the possibility of a temporary reduction in certain social expenditures is being considered, starting from May. To prevent the implementation of such a scenario, it is necessary to start the work of the domestic economy as soon as possible - both heavy industry and small and medium-sized businesses, the meeting participants noted.