Ukraine's budget loses millions due to blocking laws

This is not the first time that Ukraine has seen bills of major economic importance get stuck in the Office of the President, causing the budget to lose millions of hryvnias. One of the most striking examples is the delay in signing Bill No. 11416-d, which would have provided for a historic tax increase for most Ukrainians. This law was supposed to come into force on October 1 and provide budget revenues of UAH 30 billion by the end of 2024 to finance the war. However, after a 40-day wait, it only came into force on December 1, and some of its provisions became relevant only in early 2025.

Such delays are not isolated cases. It is worth mentioning separately the bill on advance payment for distilleries, which, despite the fact that it was adopted by the Verkhovna Rada in a record short time, waited for more than two months for the president's signature. Only at the end of December did Volodymyr Zelensky sign this law, which is supposed to close the tax evasion scheme at distilleries.

Another example is bill No. 11090, which provided for an increase in excise taxes on tobacco products. This document, adopted by the Verkhovna Rada on December 9, was also not signed on time and remained in the Office of the President for almost a month. All these delays lead to significant budget losses. For example, the delay in signing the bill on excise taxes cost the budget about UAH 126 million, which could have been used for the needs of the army.

These phenomena in Ukraine have already been called the “silent veto,” when the president deliberately delays the signing of bills contrary to constitutional requirements. Although the Office of the President explains this by the need to carefully study each document, analysts and deputies, in particular Yaroslav Zheleznyak from the Holos faction, believe that these delays are often related to the influence of lobbyists who are trying to postpone the implementation of changes that are economically unpleasant for business.

In general, it is estimated that the Ukrainian budget loses significant amounts due to such delays. For example, for the tobacco industry, the delay in signing the bill cost the budget over 25 million hryvnias per day.

Despite the fact that the Constitution of Ukraine provides for 15 days for signing draft laws, in practice Ukrainian presidents often do not comply with this requirement. According to experts, such a situation is impossible without amendments to the Basic Law, since the unclear wording allows for decisions to be made at one's discretion.

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