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The IMF said whether they are ready to help Ukraine cover the costs of war and mobilization

В МВФ сообщили готовы ли помочь Украине покрывать расходы на войну и мобилизацию

ILLUSTRATIVE PHOTOGRAPHY, GETTY IMAGES

The director of the International Monetary Fund's European Department, Alfred Kemmer, expects Ukraine to generate domestic revenue if budget spending rises due to the war.

Source: Voice of America

Details: This is how Kemmer answered the question of whether international donors are ready to increase their assistance to Ukraine if budget costs increase due to war and mobilization.

The IMF representative noted that the fund's support is focused on supporting the work of the state and its social obligations, and not on the military sphere.

Kemmer's direct speech : “I always emphasize very clearly – we expect domestic revenues to be generated. Strengthening the economy, structural reforms that support economic activity, better governance will provide additional tax revenues.

We support and monitor the budget as a whole, not individual expenditures, and we and donors help the Ukrainian government perform essential functions during war, such as protecting vulnerable populations, paying wages, pensions, paying for education and the like. This is exactly what the 122 billion financing program is aimed at.”

More details: If there are additional fiscal costs due to the war, Kemmer says better management and, in particular, the National Revenue Strategy, which the government approved on December 28 to implement the terms of the IMF program, should help generate additional revenues.

The strategy will “receive more budget revenues and support spending needs during this time,” says a Fund official.

He added that the National Revenue Strategy is also important to build a modern state, and a modern state needs investment.

According to him, the private sector in Ukraine needs to create an environment that will allow it to receive tax revenues and finance expenses.

Background:

www.pravda.com.ua

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