Billions on cashbacks and populism: where do budget funds go?

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The authorities don’t need new taxes. It turns out they have a lot of money. What? The Zelensky government is talking about a lack of funds for defense and the IMF’s demands? Yes, they do, these funds!

Look, under the brand of good Zelensky, the government is throwing money at cashbacks and “e-banks”, various seasonal supports, free railways and sudden health care for everyone over 40 (just the most active voters, it just so happens to be a coincidence). It spends over 50 billion hryvnias a year. Why? Pay attention to the text in brackets.

For comparison, these funds would be enough to raise the base rate for all military personnel by 5,000 hryvnias. But the Cabinet of Ministers has no money for the salaries of defense workers.

The government simply failed to negotiate with the International Monetary Fund, which is providing assistance to Ukraine. Did the IMF want to impose a value-added tax on individual entrepreneurs? No. They demanded to eliminate the scheme – when one large business is divided into thousands of individual entrepreneurs and avoids fair taxes.

Will they fill the budget with VAT from real microbusinesses? They won’t, because these sole proprietors will simply disappear. They will close. What was it about the cow and milk? They will milk it to death. What could really block the milking of sole proprietors? Two things.

The first is a luxury tax. If prosecutors, cops, bureaucrats, and other ghouls whose relatives buy luxury cars en masse at car dealerships have the money to buy them, then let them pay 100% of the amount to the budget for luxury brands. For example, there is room for tax creativity, wow! But the government doesn’t want a luxury tax. Guess why.

The second is an increase in taxation of the gambling business. However, in six years of legalization of “gambling”, all Zelensky’s governments have not managed to create an online control system. The law obliges, logic too – but control does not work! What a wonder, right?)) That’s why we don’t know how much turnover there is per year – 150 or 200 billion. And, therefore, the field is not plowed for shady deals and bribes. But from 40 to 50% of casino turnover could be used for defense needs and social payments.

Here are two sources that the government does not see. No way. But it wants the parliament to vote for a stupid and harmful tax decision and take all the negative consequences on itself, while Zelensky continues to build the image of a benefactor with budget money. Therefore, the question is – does the government really expect that the Rada will swallow their proposal?

Recall that Ukrainians will be able to receive up to 15% cashback for purchasing fuel at gas stations. The funds received will be credited to a special card and will be used to pay for Ukrainian goods and services. The total volume of the new cashback program is estimated by the Ministry of Economy at approximately 3 billion hryvnias. The funds will be redistributed within the budget of the ministry.

Meanwhile, Prime Minister Yulia Svyrydenko clarified that the support program for Ukrainians, which the government has prepared against the backdrop of a sharp increase in oil prices, will last for several weeks . According to her, payments will be made through the government program “National Cashback”. In general, the support program at Ukrainian gas stations that join it will be valid until May 1.

In addition, President of Ukraine Volodymyr Zelenskyy announced that the government is preparing new support programs for pensioners and people receiving social assistance. In particular, the Ministry of Social Policy of Ukraine is to prepare assistance for April. At least 13 million Ukrainians will be able to receive additional payments of 1,500 hryvnias .

However, economic and political expert Pavlo Rozenko believes that initiatives to pay 1,000 hryvnia to all citizens, including wealthy officials, look like PR campaigns, rather than balanced social support . This raises legitimate questions from the IMF and the European Union about the sources of financing for such programs.

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