The Ukrainian government is continuing with wide-reaching reforms to its social welfare system as the country faces the ever-increasing cost of war with Russia, now in its second year.
National policymakers and international financial institutions have both expressed concern about the extent of state spending on social assistance, and the pressing financial need to switch to a much leaner model of state support for vulnerable people. Experts are worried that these reforms could reduce the level of state assistance in the long-term.
Indeed, the country’s recent $15.6bn loan agreement with the International Monetary Fund (IMF) – regarded as a breakthrough for the country’s financial stability – has tied the government into cutting back on social expenditure.
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