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