The Government will allocate UAH 1.64 billion for the National Cashback programme«

The government plans to allocate UAH 1.64 billion for the National Cashback, but the reserve fund is not enough

The Cabinet of Ministers plans to allocate UAH 1.64 billion from the reserve fund of the state budget to finance the programme «National cashback». This is reported by «Economic Pravda» with reference to the documents at the disposal of the editorial office.

However, as noted in the analytical materials to the draft resolution, the available amount of money in the reserve fund is insufficient, to fully cover the required payments.

Funding details

Government agencies estimate the amount of compensation required for September at UAH 1.64 billion.

The supporting documents explicitly state:

• reserve fund does not have sufficient balances to cover this amount;

• required additional sources of funding or reallocation of expenditures;

• part of the costs can be covered by future revenues, but this creates risks of delays.

The ministries emphasise that systemic budgetary decisions, rather than one-off injections, are needed for the programme to work sustainably.

Context.

The National Cashback programme is designed to compensate for part of the costs incurred by individuals and businesses, as well as to support economic activity during the war.

The demand for benefits continues to grow, which leads to an increased burden on the state budget. Economists have repeatedly warned that the reserve fund cannot be a permanent source of funding for social programmes.

The government is working to find alternative mechanisms, including through reallocation of budget items and negotiations with international partners.