Getmantsev Called “Natskeshback” a Populist Mistake: Where He Suggests Redirecting the Funds
19 August 08:34
The funding requirements for the “Affordable Loans 5-7-9%” programs and expanded insurance against war risks amount to tens of billions of hryvnias. The necessary funding can be secured by optimizing and reallocating inefficient items in the state budget—in particular, by winding down the “National Cashback” program.
According to "Komersant Ukrainian", this view was expressed by Danylo Getmantsev, chairman of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, in an interview with RBC-Ukraine.
According to the MP, the state budget includes up to 50 billion hryvnias for programs that the government is not actually using.
It has reached the point where, for one in five programs, the fund administrators have not even been able to complete the procedure and approve the budget program specifications with the Ministry of Finance throughout the entire first quarter. “The money has been allocated, but it’s just sitting there. This is a huge problem with spending efficiency,” the MP noted.
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Why is the “National Cashback” program ineffective?
Getmantsev cited the state program “National Cashback” as a specific example of inefficient use of resources. The lawmaker noted that he had spoken with entrepreneurs who oppose this initiative in favor of business lending.
Commenting on the arguments of former Economy Minister Oleksiy Sobolev regarding the benefits of cashback, the head of the Tax Committee cited the following figures:
The effect of cashback on GDP growth is 0.10%—which is within the margin of statistical error. “This was a populist mistake that must be abandoned, and the funds should be redirected toward the ‘5-7-9%’ lending program,” he stated.
He also criticized the fuel subsidy program, calling it absurd, and the “National Cashback” program ineffective.
“It was a mistake that should be abandoned. At the same time, there were also sound social policy decisions,” he said.
“National Cashback” is a presidential initiative that launched in early September 2024. The program is designed to support Ukrainian manufacturers and initially provided citizens with a 10% refund on the cost of domestically produced goods.
As of March 1, the government updated the rules for calculating cashback. The following rates have been set for Ukrainian-made goods: 5% for categories where the share of imports does not exceed 35%, and 15% for goods with an import share exceeding 35%.
Separate rates apply to fuel: 10% for gasoline, 15% for diesel fuel, and 5% for liquefied petroleum gas (LPG).
The funds received can be used to pay for utilities and to purchase Ukrainian food products, medicines, medical devices, and books, as well as for charitable purposes—in particular, to support the Armed Forces of Ukraine and the country’s reconstruction. Excise-taxable goods are not included in the permitted list.
Starting in November 2025, funds from the “National Cashback” program may also not be used to pay for mobile phone service.
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