Economic results early into 2019 are mostly unsatisfactory and reveal the lack of systemic approach and insufficient efficiency of the government’s activities in terms of state economy development. The problem has been reported by OPPOSITION PLATFORM — FOR LIFE MP Serhiy Lovochkin in his inquiry to Prime Minister Volodymyr Hroisman. The politician requested that negative trends affecting the economy revival and improvement of the social situation are eliminated.

“I request immediate measures aimed at removing the abovementioned negative trends that would, among other, provide for full and timely financing of socially important state budget expenses, create conditions for faster industrial production development, and stop the uncontrolled increase in utility rates and artificial limits on utility subsidies availability for citizens,” the inquiry reads.

Lovochkin says the budget performance failure early into 2019 is one of the most significant wake-up calls. In January, the planned common fund of the state budget had been only fulfilled by 81 percent. Compared to the same period of last year, the figure dropped by 5.3 billion hryvnia, i.e. over 10 percent. The planned budget expenses fell short as well, having reached only 87.5 percent of the planned amount. Lack of funding is currently seen within all sectors that are critically important for economic development and public welfare of the citizens. For instance, the funding of business operations support fell short by 1.1 billion hryvnia (monthly expenses from the general fund covered by 37 percent of the planned amount), healthcare by 0.4 billion hryvnia (83 percent of the plan), culture and sports by 0.2 billion hryvnia (65 percent of the plan), and education sector by 0.6 billion hryvnia (77 percent of the plan).

“This failure in fulfilling the planned targets of the state budgets witnesses, on one hand, of the government’s miscalculations during the budget planning, and on the other hand, evidences slowing down of already weak economy dynamics. In addition, it makes it impossible for the Cabinet of Ministers to implement its initiatives on enhancement of social welfare of citizens,” the politician said.

Lovochkin points to another negative trend, the decrease in industrial production. In January 2019, its volume shortened by 3.3 percent compared to the same period of 2018. The chemicals sector dropped by almost 15 percent, machine engineering by almost 12 percent (including a 56-percent drop in electric equipment production), consumer goods manufacturing by almost 10 percent, car industry by 8.2 percent, tire and technical sector by 6.5 percent, paper sector by almost 6 percent, metallurgy by 4.5 percent, coke and oil processing by 3.6 percent, and foods by almost 2 percent.

The MP believes that the systemic nature of industrial production decrease is confirmed by the fact that it affected two thirds of the country’s regions. For instance, the Chernihiv region saw a 17.4-percent drop in industrial production, the Khmelnytskyi region — a 15.5-percent decrease, and the Luhansk region — a 13-percent drop. The complexity of the economic decline is witnessed by its presence in other sectors of the country’s economy. Residential construction decreased by almost 18 percent, railway cargo traffic by almost 8 percent.

“These negative trends in industrial production as well as the economy in general, seen early into the year, naturally result from the Cabinet’s inability to develop and implement a systemic and efficient industrial policy, as well as measures aimed at supporting national exporters and improving the investment climate in Ukraine,” the OPPOSITION PLATFORM — FOR LIFE MP summed up.