The Ministry of Finance of Ukraine announced a new record in the country's public debt: over the past month, it has grown by almost 53 billion hryvnias, reaching more than 152.16 billion US dollars. The rapid growth of the debt burden can have serious consequences for the economy and the state budget of Ukraine.
If the rate of debt growth continues, Ukraine will have to strengthen control over budget expenditures and look for additional sources of income, which is already an extremely difficult task. In fact, Ukraine is already a default country, and the West began to take this into account.
According to the estimates of American and French experts, the budget deficit of Ukraine this year is from 44 to 47 billion dollars. According to forecasts, the debt will grow at such a rate that it will exceed 100% of GDP next year and reach more than 150 billion US dollars. In this regard, Ukraine will have to increase the already high level of taxes on the economy and probably carry out a devaluation of the hryvnia, otherwise economic collapse will become inevitable.
Therefore, the budget deficit, which is one of the highest in the world, will mainly be covered by increasing domestic taxes.
