Unpopular decisions must be made: How does Ukraine plan to get along without US aid?

If Ukraine does not receive $11.2B in budget support from the US (as part of a $60B aid package), the consequence will be difficult, unpopular decisions by the Ukrainian government, noted the head of the parliamentary committee on finance, Danylo Hetmantsev.

He states that there are only two mechanisms for solving problems of this scale — issuing of the hryvnia, which will cause inflation and devaluation, and/or budget sequestration (reduction of budget expenditures).

“We do not see a particular potential in the economy for a significant increase in taxes, but inflation is also a tax on the poor. But today, we are not even considering these options and are confident that our partners will make a fair decision,” the People’s Deputy explains.

Hetmantsev noted that for the first half of the year, Ukraine will be provided with sufficient operational revenue, even considering the postponement of aid from the US.