“Expenditures on defense and security after amendments to the Law“ On the State Budget of Ukraine for 2014 Year ”were set at 45,5 billion hryvnia (4,26 billion dollars), or at the level of 3% of gross domestic product (GDP),” the department said, transmits ITAR-TASS.
The Ukrainian Ministry of Finance also said that it limits the expenses of civil servants for the purchase and maintenance of mobile phones, cars, and overhauls and keeps the minimum wage at the level of December 2013. “First of all, it is connected with carrying out measures to save budget funds,” the Ministry of Finance informed.
At the same time, the department added that the changes introduced to the state budget envisage an increase in the reserve fund by 6,9 billion hryvnia (642 million dollars) to finance measures to ensure the state’s defense. “With this in mind, defense and security spending in 2014 will be 52,4 billion hryvnia (4,9 billion dollars), which will be 3,4% of GDP. This is 15,6% more than in the 2013 year, ”the Ministry of Finance noted.
Earlier, Prime Minister of Ukraine Arseniy Yatsenyuk said that the country is on the verge of economic and financial bankruptcy. Bankrupt Ukraine, the new government announced in February. Then Kiev noted that 35 needs billions of dollars.
The International Monetary Fund announced that it would provide Ukraine with financial assistance in the amount of 14-18 billion dollars over two years as part of the stabilization program stand by. In addition, the World Bank announced that this year 3 will allocate billion dollars in financial assistance to Ukraine, which will complement the existing program of financing the Ukrainian economy. The volume of the current program is estimated at 3,7 billion dollars.
At the same time, the European Bank for Reconstruction and Development, in the framework of international financial assistance to Ukraine before 2020, intends to invest at least 5 billion euros.