imf-comments-on-who-will-cover-ukraines-additional-war-and-mobilization-costs

IMF comments on who will cover Ukraine's additional war and mobilization costs

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Director of the European Director of the International Monetary Fund's European Department Alfred Kemmer expects Ukraine to will generate domestic revenues if budget expenditures increase due to the war. This was reported by the Voice of America, according to UNN.

Details

The IMF representative representative emphasized that the Fund's support is focused on supporting the work of the state and its social obligations, not the military.

I always emphasize very clearly - we expect domestic revenues to be generated. Strengthening the economy, structural reforms that support economic activity, better governance will provide additional tax revenues

Kemmer said.

In response to a request to comment on the statement of the Ukrainian President Volodymyr Zelenskyy, made during the during the final annual press conference that additional mobilization would require new funds, and that it would take six taxpayers to finance one soldier, six taxpayers, Kemmer emphasized that donors are focusing their economic support their economic support on the social component of the budget and and the functioning of the government.

We support and monitor the budget as a whole, not individual expenditures, and we and donors are helping the government of Ukraine to fulfill its core functions during the war, such as protection of vulnerable populations, payment of salaries, pensions, and education. and education. This is the focus of the 122 billion

Kemmer pointed out.

If the war causes additional additional budget expenditures, Kemmer says that better management and, in particular, the additional revenues should be generated by better governance and, in particular, the National Revenue Strategy Revenue Strategy, which the government approved on December 28 as part of the IMF program.

Шмигаль скликає екстрену нараду через "невизначеність" бюджету – Bloomberg28.12.23, 22:45

The strategy will allow "to get more budget revenues, to support the needs for spending during this time," says an official of the Fund.

He adds that the National revenue strategy is also important to build a modern state, and a modern state needs investments.

For the private sector in Ukraine, it is necessary to create an environment that will allow it to receive tax revenues and finance expenditures

Kemmer added.

Lilia Podolyak

Economy

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