Ukraine is cutting non-priority expenditures — what will be funded first

The government has prioritized spending on defense, pensions, social benefits, and salaries for public-sector employees. Prime Minister of Ukraine Serhii Koretskyi announced this on September 28, UNN reports.

This is because the situation with Ukraine's public finances remains difficult, in particular due to delays in some of the planned international financing. 

Details

According to Koretskyi, some of the international financing Ukraine had been counting on has not yet arrived. He cited the failure to fulfill some obligations to international partners within the established deadlines as one of the reasons.

"Under these conditions, we continue to take tough anti-crisis measures to ensure the most important things — the needs of our defense and our people," the head of the Cabinet of Ministers said.

He said that the government had adopted a decision establishing the priorities for public spending. Funds will be directed first and foremost to defense, pensions and social benefits, as well as salaries for teachers, doctors, and other public-sector employees.

At the same time, expenditures that are not considered top-priority will be postponed. These include, in particular, new construction, reconstruction, and capital repairs that are not critically important, as well as financing for public-improvement projects. Among such expenditures, Koretskyi mentioned the development of parks and public gardens, the construction of fountains, and the relaying of paving stones.

"Of course, we will do all of this, but for now all resources must be directed toward critically important areas. It is finally time to stop spending money on things that are not priorities," the Prime Minister of Ukraine said. 

Koretskyi also urged local self-government bodies to review the priorities in their own budgets and limit funding for expenditures that are not currently top-priority. According to him, the government continues to work on fulfilling its obligations to international partners, which are necessary to receive the planned external financing.

The head of government added that this work is being carried out jointly with parliament, emphasizing the need for responsible work by members of parliament from all factions and groups.

Recall

Earlier, Prime Minister Serhii Koretskyi explained which payments would be financed first and which would be delayed.