The Finance Minister of Ukraine, Serhiy Marchenko, during a telethon, noted that this decision was a compromise dictated by the needs of the security and defense sector, reports LIGA.Net.
According to him, currently, 26% of GDP is allocated for defense needs.
“Under these circumstances, we have no choice but to seek balances. This was a painful, forced decision, and it is quite a compromise. The compromise we reached only partially satisfies me as the Finance Minister. The key task was to balance the needs of the Armed Forces of Ukraine with our capabilities,” Marchenko emphasized.
The minister added that due to limited domestic borrowing capabilities, taxes remain the primary source of funding for the army.
“This year, we have no other sources than to finance our Armed Forces through taxes. The volumes of domestic borrowing also have certain limitations, meaning we cannot indefinitely inflate borrowing. We needed to rely on some stable base,” Marchenko stated.
He highlighted that even in difficult circumstances, Ukrainian businesses and citizens recognize the necessity of increasing taxes.