The state is allocating funds only for protected budget items
Over the past month, funding for non-priority budget expenditures has been restricted in Ukraine. The state has focused on securing protected items, including salaries for public sector employees, pensions, payments to military personnel, and defense needs. This was reported by Minfin citing Hlib Vyshlinskyi, according to the portal PromPolitInform.
According to Hlib Vyshlinskyi, executive director of the Centre for Economic Strategy, the tightening of control applies to both the state and local budgets. The restrictions primarily affect capital expenditures and the implementation of specific projects.
Specifics of expenditure funding
Contractual works for which prepayments have already been made continue to be funded. At the same time, projects that lack such funding or require additional budgetary resources may be suspended. In specific cases, such as funding the participation of Junior Academy of Sciences representatives in an international olympiad, the government has to make special decisions.
Currently, the state is directing available funds exclusively toward protected items. The list of priorities includes wages for public sector workers, pension provision, monetary support for the military, as well as specific defense procurements and food expenses.
Reasons for budget optimization
The expert noted that the decision to block a range of expenditures was made back in mid-September. These steps are linked to the necessity of fulfilling the conditions of international partners and guaranteeing stable external funding, rather than being caused solely by the consequences of enemy strikes on economic infrastructure.
In the event of a further deterioration in the economic situation, the state may strengthen austerity measures. It is expected that at future stages, defense spending could be reduced or other projects could be frozen. In an extreme case, if funds are insufficient for social and defense obligations, there is a risk of payment delays or the use of emission financing, which could affect the welfare of citizens.
At the same time, the Cabinet of Ministers continues to redistribute funds to support defense forces. As Prime Minister Serhii Koretskyi emphasized, despite the budget deficit, funding payments to military personnel remains an unconditional priority for the government.
Photo: Minfin
