Reform Watch
OP-ED
Anders Aslund: Ukraine needs a radical but sensible tax reform
A girl waves the Ukrainian flag as paratroopers stand during a welcome ceremony in Kyiv on Sept. 4 as servicemen of the 81st Assault brigade arrived after serving on the frontline in eastern Ukraine.
At present, the government’s proposal at a radically changed tax policy is the main issue of economic discussion. This proposal is basically right and deserves all support. The fundamental problem with Ukraine’s public finance is that public expenditures have persistently been far too large. In 2014, Ukraine had public expenditures of 53 percent of gross domestic product, while successful fast-growing countries in the neighborhood (Lithuania, Latvia, Slovakia, Bulgaria and Romania) had public expenditures of about 35% of GDP, which should the Ukraine’s target.
