Igor Burakovsky: What Will Be the State Budget for 2021?

Igor Burakovsky, Head of the Board of the Institute for Economic Research and Policy Consulting, commented on the State Budget of Ukraine for 2021.

The state budget was prepared in an extremely difficult political situation. In fact, we have seen two levels of political bidding for the budget – between different structures in the government and, on the other hand, between the parliament and the government. I also add the Presidential Administration to the parliament (Office of the President, ed.). This is such a traditional situation for Ukraine: state budgets are always adopted as a result of such tenders. It seems to me that this year’s bidding was extremely intense and their scale was clearly larger than in previous years.

The budget was adopted in a situation of great uncertainty. We do not know how things will go with the Covid-19. It is difficult for us to predict economic dynamics, as the situation can change very quickly. When the budget was being prepared, there were expectations that the pandemic would decline. However, we see that the situation is getting worse. In this sense, we should expect that the figures in the budget and some of our forecast data might change.

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