IMF tells what will provide additional revenues to Ukraine's budget

Alfred Kammer, director of the IMF's European Department, said this in an interview with the Voice of America, Ukrinform reports.

The IMF expects Ukraine to generate domestic revenues, he said in response to a question about whether international donors are ready to increase aid to the country if budget expenditures increase due to the war.

Kammer stated that the IMF expects domestic revenues to be generated. A stronger economy, structural reforms that support economic activity, and better governance will generate additional tax revenues, he added.

He emphasized that donors focus their economic support on the social component of the budget and the functioning of the government.

The IMF supports and monitors the budget as a whole, not individual expenditures. The IMF and donors are helping the government of Ukraine during the war to perform basic functions, such as protecting vulnerable populations, paying salaries, pensions, paying for education, etc. This is what the $122 billion financing program is aimed at, the IMF representative explained.

Better governance, in particular the National Revenue Strategy, which was approved by the Cabinet of Ministers on December 28 to fulfill the terms of the IMF program, should help Ukraine generate additional revenues, Kammer said. According to him, the strategy will allow getting more budget revenues and supporting the expenditure needs during this time. It is also important to build a modern state, and a modern state needs investments.

The private sector in Ukraine needs to create an environment that will allow it to receive tax revenues and finance expenditures, the director of the IMF's European Department said.

As reported, the Ministry of Finance said that next year Ukraine's need for international financing will be reduced from $41 billion to $37.3 billion.