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IMF on additional funding for mobilization: we expect Ukraine to generate domestic revenues
Alfred Kammer, a representative of the International Monetary Fund, says that Ukraine will generate domestic revenues to increase funding for mobilization
He said this in an interview with the Voice of America.
The IMF representative emphasized that the Fund's support is focused on supporting the work of the state and its social obligations, not on the military sphere.
"I always emphasize very clearly that we expect domestic revenues to be generated. A stronger economy, structural reforms that support economic activity, better governance will generate additional tax revenues," Kammer said.
President Volodymyr Zelenskyy said that additional mobilization would require new funds, and that six taxpayers would be needed to finance one soldier. Kammer emphasized that donors focus their economic support on the social component of the budget and the functioning of the government.
"We support and monitor the budget as a whole, not individual expenditures, we and donors are helping the government of Ukraine to perform basic functions during the war, such as protecting vulnerable populations, paying salaries, pensions, paying for education, etc. This is exactly what the 122 billion funding program is aimed at," Kammer said.
According to him, if Ukraine needs additional budget expenditures due to the war, better governance and, in particular, the National Revenue Strategy, which was approved by the government on December 28 to meet the conditions of the IMF program, should help generate additional revenues. The strategy would allow "to get more revenues to the budget, to support the spending needs during this time," the Fund official said.
"For the private sector in Ukraine, we need to create an environment that will allow it to generate tax revenues and finance expenditures," Kammer said.
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On Tuesday, December 19, Volodymyr Zelenskyy held a press conference on the results of 2023. The President shared information that the General Staff had asked to mobilize an additional 450,000-500,000 Ukrainians.
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