Ukraine’s reserve fund is almost empty: where did the money go?

The state budget of Ukraine has a critically small amount of funds left in its reserve fund, amounting to about 700 million hryvnias. Instead of accumulating resources for unforeseen events, the authorities have directed the money to road works and cashback programs.

This was reported by Viktor Bobyrenko, an expert at the Bureau of Policy Analysis, in a comment to “Pryamo”, referring to data from the Anti-Corruption Center.

He explained that this fund usually amounts to 1% of the budget and is intended to finance force majeure situations without waiting for decisions of the Verkhovna Rada.

“We were supposed to accumulate 12 billion in January, February, and March. But 700 million remained. And where did it go? That’s right. They’re patching roads and again throwing this money at cashbacks,” Bobyrenko expresses indignation.

He stressed that instead of accumulating resources for unforeseen events, the government is directing money towards road works and various loyalty programs, such as state cashback. According to the political scientist, 20 million hryvnias are being directed to this direction alone every day.

At the same time, the state, Bobyrenko notes, does not use mechanisms to reduce fuel prices through excise taxes, as is done in European Union countries. Instead of containing the cost at state-owned gas stations, gasoline prices continue to rise, he noted.

As a reminder, the Cabinet of Ministers of Ukraine used more than 78% of the reserve fund intended for emergency situations, directing a significant part to social payments, including the “National Cashback” program. Political scientist Kateryna Roshuk criticized this approach to public administration on the air of “Pryamoy”, emphasizing the inappropriateness of populist programs in the midst of war.

Meanwhile, the Ministry of Economy, Environment and Agriculture reported on the costs of the “Cashback for Fuel” program in Ukraine. Daily payments to Ukrainians amount to about UAH 20 million , which are directed to specific needs. The government emphasizes that the program is in demand among the population.

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