In News

Expert: the budget of Ukraine during the independence of the country “lost” four times

Expert: the budget of Ukraine during the independence of the country “lost” four times

First Vice-President of the Academy of Economic Sciences of Ukraine Anatoly Peshko noted that the destruction of the cooperative chains created in Soviet times had a negative impact on the country’s economy.

KIEV, December 9. / TASS /. The state budget of Ukraine for 30 years of independence of the country has decreased almost four times, which is largely due to the rupture of traditional economic ties and production chains with the former Soviet republics. This opinion was expressed in an interview with TASS, dedicated to the 30th anniversary of the collapse of the USSR and the creation of the CIS, by the first vice-president of the Academy of Economic Sciences of Ukraine Anatoly Peshko.

“If we take dry numbers, then it is enough to recall what was the budget of Ukraine under the Soviet Union <…> At that time it was about $ 160 billion, inflation occurred during this time more than 10-12 times, today the budget Ukraine should have amounted to $ 1.6 trillion, “the expert said. In early December, the Verkhovna Rada approved the draft budget for 2022. It is planned that revenues will be about $ 49 billion, and expenses – about $ 55.4 billion.

Peshko explained that the destruction of the cooperative chains created in Soviet times had a negative impact on the country’s economy. “One of the reasons is the loss of cooperative ties, economic chains that linked the union republics <…> There was such an economic model in which some parts of high-tech equipment, products, for example, in aircraft or rocketry, were produced in one part of the USSR, others – in another “, – said the expert.

High-precision, high-value-added industries such as instrumentation and electronics have been hit particularly hard, he said. “It hurts to watch when our factories, the same” Arsenal “, the most accurate equipment for the military and not only the military industry, the same” Electroizmeritel “plant in Zhitomir – these were a kind of unique enterprises, and today a trading center, buildings were destroyed “, – said the economist.

He added that with the termination of the work of these enterprises, many jobs disappeared and the state’s personnel potential was lost. “The old cadres actually die, new ones do not come to replace them. There was a break in continuity between the old cadres and the new ones. Those engineers, industrialists who made up the personnel power of Soviet Ukraine, today they are either retired or abroad,” the analyst continued.

Non-pofessionals in power

According to Peshko, the situation began to deteriorate significantly after 2014, when non-professionals came to power. “They came in 2014, <…> I’m not speaking unprofessional, they are even inadequate, and the destruction took place not only in industry, but even in agriculture,” he said.

The expert fears that in the near future, many companies in the agricultural sector in Ukraine may go bankrupt. “With such energy prices, the price today is 40 thousand hryvnia per thousand” cubic meters “of gas, electricity has quadrupled, all our nitrogen fertilizer production has been stopped. and added that the cost of production in the Ukrainian agricultural sector may grow strongly, while its selling price remains below the level of previous years.

Relations with the EU and CIS

At the moment, Peshko believes, relations between Ukraine and the European Union are built asymmetrically, and the terms of cooperation are unfavorable for Kiev. “The Association Agreement with Europe is spelled out in such a way that Ukraine should all over Europe, and Europe does not owe Ukraine anything. It is spelled out in such a way that in Ukraine you can sell everything with taxes and fees no more than 10%, and sell Ukraine to Europe with taxes and fees 30% “, – explained Peshko. He believes that Ukraine has become “a market for second-rate goods.”

“It is necessary to establish mutually beneficial terms of trade and development in various fields <…> with the CIS countries, including Belarus and Russia, because these are our Slavic peoples, they are close to us in mentality,” the expert added.  In his opinion, Ukraine should be open to investors from any country, and the conditions should be the same for everyone. “There should be no ridiculous restrictions for Belarus or for Russia. Ukraine should be a neutral state, like Switzerland,” he summed up.