The Verkhovna Rada plans to reduce budget expenditures if the United States does not agree to allocate funds for further assistance to Ukraine.
What is known about the scenario in the absence of US aid
According to the head of the parliamentary committee on budgetary policy, Roksolana Pidlasa, Ukraine will have to survive January with a significant reduction in budget expenditures due to the lack of US aid.
However, she believes that the reason for optimism is the preservation of bipartisan support in the US Congress.
According to Pidlasa, the most realistic scenario is the approval of further aid to Ukraine by the end of this year.
Undoubtedly, there are some radical Republicans who do not support Ukraine and believe that it is necessary to reduce support, but all congressmen who analyze the situation understand that the funds directed to the military support of Ukraine mostly remain in the United States, the budget committee chief emphasized.
She explained that the funds allocated to help Ukraine are mainly used to support defense production in the US.
In particular, as Pidlasa noted, not a single MANPADS Stinger has been produced in the US since 2005, and only after the US began supplying them to Ukraine, the Pentagon signed a $624 million contract for their production to replace those in storage sent to our country.
Even if by the end of the year a decision on the provision of funds from the USA is not made, we will manage in January. And the state budget will be fulfilled. But here it is necessary to understand that this concerns financing not only from the USA, but also from all international partners of Ukraine. If we have an underfunding of the state budget, that is, the deficit will not be fully covered, it will mean a big reduction in state budget expenditures, the budget committee chief warned.
Under this pessimistic scenario, those expenses will be reduced currently directed to support Ukraine's economy.
In particular, all capital expenditures, all business support programs will be reduced. If there is not enough funding, then there can be no talk of any recovery in 2024 either. In addition, of course, we will continue to talk about the redirection of taxes from the local level to the level of the state budget so that we can ensure the fulfillment of all our obligations to the employees of the budget sphere, regarding social payments, Pidlasa warned.
