Having promised to stimulate economy development, the government in fact reduces its support for it in a number of areas. This was stated by OPPOSITION PLATFORM – FOR LIFE MP Serhiy Lovochkin.
“All promises to speed up economic growth to 7–8 percent per year have turned out to be a fake. Final figures in the budget-2020 document even speak for winding up the support for economic development in a number of areas. They stop financing the export credit agency, which is another evidence of the fact that no one is interested in promoting Ukrainian goods to foreign markets. Ukrainian business now must survive on its own,” Lovochkin said.
The politician reminded that last year the export credit agency had been allocated some 74mln hryvnia, but even this amount was insufficient to help all companies who wished to expand their foreign presence or at least come to those markets.
“But even this funding has been cut. Additionally, the budget-2020 sees by 10 percent lower expenses on export support and promotion and by 9.3 percent less funding for the network of Ukraine’s trade missions abroad. I guess the government believes our export is doing fine and thus decided to spend by a quarter less on support of exporters and trade missions compared to president’s nature reserves,” he said.
The MP reminded that huge volumes of domestic government bonds being sold to speculative foreign investors pose risks to the state budget-2020 and financial stability in general.
“And we won’t be able to compensate these risks since the only way to provide a stable inflow of currency into the country is through growing export and foreign direct investments. Implementation of manufacturing industry revival program and support for exporters are the only way for Ukraine to overcome the permanent budget crisis. But neither the budget-2020 nor the Cabinet’s program envisage any steps for that,” Lovochkin said.
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