50 billion hryvnias for Ukrainian business: the Rada proposed a new mechanism to support entrepreneurs

Ukrainian business is proposed to allocate 50 billion hryvnias for the restoration of enterprises, insurance of war risks and construction of underground production facilities. At the same time, it is proposed to finance the program without raising taxes – by reducing ineffective budget expenditures.

What is planned to allocate 50 billion hryvnias for

According to the people’s deputy, the funds are proposed to be accumulated in a special business support fund.

Financing should be directed to help enterprises operating in conditions of full-scale war and facing the risks of destruction of production infrastructure.

In particular, the money is proposed to be used in the following areas:

War risk insurance – financial protection of enterprises from possible losses.

Business restoration – assistance to enterprises that have suffered as a result of Russian attacks.

Construction of underground production facilities – lending for the creation of protected facilities to continue the work of enterprises.

Arrangement of underground warehouses – development of safe infrastructure for storing products and materials.

The initiative is designed to help Ukrainian enterprises maintain production even under the constant threat of shelling.

Where to get 50 billion without raising taxes

Yaroslav Zheleznyak supported the proposal of the Ministry of Economy to create a mechanism to help businesses, but emphasized the need to review state spending.

In his opinion, additional funding should be sought not through an increase in taxes, but through the reduction of inefficient budget programs.

Thus, the state could redistribute part of the resources to support enterprises without an additional financial burden on entrepreneurs.

At the same time, the deputy’s statement does not contain a specific list of expenses that are proposed to be reduced.

International partners can increase funding

Separately, Zheleznyak drew attention to the possibility of attracting foreign funds.

According to him, state investments in supporting businesses can become the basis for additional funding from international partners.

The deputy gave an example of a mechanism under which foreign partners could add two to three more hryvnias to every hryvnia of state funds.

If this approach is implemented, the amount of financial support for enterprises could potentially significantly exceed the initial 50 billion hryvnias.

However, this is currently a proposed co-financing model, not confirmed agreements on the allocation of additional funds.

Why business support is important for the state budget

According to Zheleznyak, assistance to enterprises is necessary not only to preserve jobs and production, but also for the stability of state finances.

Enterprises that continue to operate provide employment for the population and pay taxes.

In contrast, the destruction of production facilities, the shutdown of enterprises and the reduction of economic activity negatively affect budget revenues.

That is why the deputy believes that supporting businesses during the war should be one of the priorities of state economic policy.

Have payments to entrepreneurs been approved yet

Currently, we are talking about the initiative to create a business support fund and proposals for its funding sources.

The decision to allocate 50 billion hryvnias does not yet mean that entrepreneurs can apply for funds.

Specific conditions of participation, criteria for selecting enterprises, insurance and lending mechanisms should be determined separately in the event of the program’s implementation.

Therefore, the proposed fund may become an additional tool to support Ukrainian business, but its creation and financing require appropriate state decisions.