In 2015 Ukraine will live on an anti-social budget - expert

In 2015, Ukraine will live under an anti-social budget that will lead to economic stagnation.

This was stated by Viktor Medved, an expert of the Analytical Center "Prisma", during a briefing, reports Golos.UA.

"The state's social policy for the next year reflects the encouragement of a system where the poor become beggars and the 'middle class' become poor," the expert believes.

Mr. Medved reminded that income indexation for 2015 was carried out only for one category of the population - orphans. "For 40 thousand orphans, the allowance was increased by 40%. All the rest - teachers, doctors, pensioners, disabled people - were hit," he said.

According to the expert, the purchasing power of the population will continue to decline rapidly, leading to stagnation in the economy. "When social payments are reduced, consumer demand also decreases. At the moment, Ukraine is actually already bankrupt, because half a trillion hryvnias that are planned to be injected into the country's economy are 'short money' that will be spent on repaying other debts. Apart from the fact that debts are increasing, this policy does not lead to anything good. The policy should have been as follows: the country takes external borrowings, invests them in production, and then returns them debts from the proceeds of new production, plus it also makes a profit. Today, Ukraine is only increasing its debt, but there is no economic or social benefit," he explained.