{"id":6494,"date":"2022-02-04T14:32:07","date_gmt":"2022-02-04T12:32:07","guid":{"rendered":"https:\/\/centreua.org\/?p=6494"},"modified":"2022-02-08T11:44:37","modified_gmt":"2022-02-08T09:44:37","slug":"improvement-of-defense-capabilities-of-ukraine-and-reallocation-of-military-fee","status":"publish","type":"post","link":"https:\/\/centreua.org\/en\/monitoring\/improvement-of-defense-capabilities-of-ukraine-and-reallocation-of-military-fee\/","title":{"rendered":"Improvement of defense capabilities of Ukraine and reallocation of military fee"},"content":{"rendered":"<p style=\"text-align: left;\" align=\"justify\"><span lang=\"en-US\">It looks like the whole establishment is busy meeting high-ranking foreign guests that arrive one after another in Kyiv these days. Still, some important things besides diplomacy have also been done. The President found time to visit the Verkhovna Rada and outlined his plan to strengthen the Armed Forces of Ukraine with one decree. A group of MPs, from their side, proposed to use revenue from the military fee for military needs.<\/span><\/p>\n<h2 style=\"text-align: left;\" align=\"center\"><strong><span lang=\"en-US\" style=\"color: #800000;\">Urgent measures to improve the defense capabilities of the state<\/span><\/strong><\/h2>\n<p style=\"text-align: left;\" align=\"center\"><strong><span style=\"color: #800000;\"><span lang=\"en-US\">Presidential decree <\/span><a style=\"color: #800000;\" href=\"https:\/\/www.president.gov.ua\/documents\/362022-41285\"><span lang=\"en-US\">#\u00a036\/2022<\/span><\/a><\/span><\/strong><\/p>\n<p style=\"text-align: left;\" align=\"justify\"><span lang=\"en-US\"><strong>Decision-maker<\/strong>: <\/span><span lang=\"en-US\">the President.<\/span><\/p>\n<p style=\"text-align: left;\" align=\"justify\"><strong><span lang=\"en-US\">Who is affected: <\/span><\/strong><span lang=\"en-US\">the Cabinet, the Ministry of Defense, and the Armed Forces of Ukraine.<\/span><\/p>\n<p style=\"text-align: left;\" align=\"justify\"><strong><span lang=\"en-US\">Summary of the decree:<\/span><\/strong><\/p>\n<p style=\"text-align: left;\" align=\"justify\"><span lang=\"en-US\"><strong>Gives the following orders to the Cabinet<\/strong>:<\/span><\/p>\n<ol style=\"text-align: left;\">\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to ensure that the security and defense sector will get 5% of projected GDP (3 percent out of these 5 should be allocated for the needs of defense) in 2023-2025<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to prepare the following draft bills:<\/span><\/p>\n<\/li>\n<\/ol>\n<ul style=\"text-align: left;\">\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to provide pay raise for the military in 2022<\/span><\/p>\n<\/li>\n<\/ul>\n<ul style=\"text-align: left;\">\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to gradually increase the strength of the Armed Forces by 100,000 service members within the next three years<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to introduce a system of intensive military training to replace compulsory military service<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to abolish conscription from January 1, 2024.<\/span><\/p>\n<\/li>\n<\/ul>\n<p style=\"text-align: left;\" align=\"justify\"><strong><span lang=\"en-US\">Gives the following orders to the Ministry of Defense:<\/span><\/strong><\/p>\n<ul style=\"text-align: left;\">\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to develop a plan for a gradual transition to professional military service<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to make military contracts long-term<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">by 2023, to ensure that remuneration for service members under long-term military contracts is no less than three living salaries total<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to speed up the development of a program to provide housing for the military<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to introduce a transparent system of career advancement.<\/span><\/p>\n<\/li>\n<\/ul>\n<p style=\"text-align: left;\" align=\"justify\"><span lang=\"en-US\"><strong>What is wrong<\/strong>:<\/span><\/p>\n<ul style=\"text-align: left;\">\n<li>\n<p align=\"justify\"><span lang=\"en-US\">the decree is unconstitutional since the President has no authority to give any orders to the Cabinet<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to give a pay raise for the military in 2022, the Cabinet will have to make significant changes to the government budget adopted only months ago. It is a bad practice to interfere with budgetary planning this way<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to abolish conscription is a populist order since no state engaged in a continuous war or under a threat of invasion can recruit the army relying solely on contracted service members. There will be fewer potential candidates due to high risks and the economy cannot offer sufficient remuneration to maintain the necessary numbers<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">the state has no money to increase the strength of the Armed Forces by 100,000 in three years or to maintain such an army. Ukraine already spends near 5% of its GDP on the security and defense sector and will hardly be able to significantly increase the share in the nearest future<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">longer contracts will result in fewer candidates for professional military service and the retirement of those service members that will decline to sign new longer contracts.<\/span><\/p>\n<\/li>\n<\/ul>\n<p style=\"text-align: left;\" align=\"justify\"><span lang=\"en-US\"><strong>Alternative solution<\/strong>:<\/span><\/p>\n<ul style=\"text-align: left;\">\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to exercise his authority, the President should prepare draft bills without the help of the Cabinet. He has the right to initiate legislation and is responsible for the overall management of the security and defense sector<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">include a pay raise for the military in the government budget for the next year before the budget is adopted<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">introduce a modern approach to compulsory military service, make it a mandatory prerequisite for some of the positions within civil service and state-owned enterprises<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">allocate available financial resources to enhance the living conditions of military members and rearmament.<\/span><\/p>\n<\/li>\n<\/ul>\n<p style=\"text-align: left;\" align=\"center\"><span lang=\"en-US\">Reallocation of military fee revenue for defense needs<\/span><\/p>\n<h2 style=\"text-align: left;\" align=\"center\"><strong><span style=\"color: #800000;\"><span lang=\"en-US\">Draft bill <\/span><a style=\"color: #800000;\" href=\"https:\/\/itd.rada.gov.ua\/billInfo\/Bills\/Card\/38886\"><span lang=\"en-US\">#\u00a06566<\/span><\/a><span lang=\"en-US\"> of January 28, 2022<\/span><\/span><\/strong><\/h2>\n<p style=\"text-align: left;\"><strong><span style=\"color: #800000;\"><span lang=\"en-US\">Cosponsors: <\/span><span lang=\"en-US\">Volodymyr Tsabal and 8 MPs from Holos faction.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: left;\"><span lang=\"en-US\"><strong>Who is affected<\/strong>: <\/span><span lang=\"en-US\">Ukrainian citizens, the Ministry of Finance, the Ministry of Defense, and the Armed Forces of Ukraine.<\/span><\/p>\n<p style=\"text-align: left;\" align=\"justify\"><strong><span lang=\"en-US\">Background: <\/span><\/strong><span lang=\"en-US\">after the aggression of the Russian Federation against Ukraine started in 2014, Ukraine introduced a military fee. Revenue from it (<\/span><a href=\"https:\/\/index.minfin.com.ua\/ua\/finance\/treasury\/military\/2022\/\"><span lang=\"en-US\"><span style=\"color: #800000;\">almost \u20b427\u00a0bln in the previous year<\/span><\/span><\/a><span lang=\"en-US\">) is incorporated into the General fund of the government budget.<\/span><\/p>\n<p style=\"text-align: left;\"><strong><span lang=\"en-US\">Summary of the bill:<\/span><\/strong><\/p>\n<ul>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">excludes the military fee from the revenue of the general fund of the government budget<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">allocates revenue from the military fee to the special fund of the government budget that will serve the needs of the Armed Forces and renovation of military equipment.<\/span><\/p>\n<\/li>\n<\/ul>\n<p align=\"justify\"><strong><span lang=\"en-US\">What is wrong:<\/span><\/strong><\/p>\n<ul>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">the bill does not propose additional sources of revenue and does not make any cuts to the general fund of the government budget after the revenue from the military fee is excluded. This will result in a deficit of more than \u20b420\u00a0bln in the general fund of the government budget in 2022<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to provide funding for the Armed Forces and renovation of military equipment from a special fund increases corruption risks and inefficient use of public money: military procurements are classified and a plan for such procurements is very flexible.<\/span><\/p>\n<\/li>\n<\/ul>\n<p align=\"justify\"><strong><span lang=\"en-US\">Alternative solution:<\/span><\/strong><\/p>\n<ul>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">for draft bills on the reallocation of funding for a particular sector, it is necessary to indicate either additional sources of revenue or cuts for particular budget items<\/span><\/p>\n<\/li>\n<li>\n<p align=\"justify\"><span lang=\"en-US\">to adjust the proposed spending on the development of the Armed Forces with the needs of the state defense acquisition.<\/span><\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>It looks like the whole establishment is busy meeting high-ranking foreign guests that arrive one after another in Kyiv these days. Still, some important things besides diplomacy have also been done. The President found time to visit the Verkhovna Rada and outlined his plan to strengthen the Armed Forces of Ukraine with one decree. A [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":6495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[259],"tags":[320,342,317,314],"level":[],"area":[],"coauthors":[516],"class_list":["post-6494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-monitoring","tag-kabmin-en","tag-president","tag-zelensky","tag-zsu-en"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.10 - aioseo.com -->\n\t<meta name=\"description\" content=\"It looks like the whole establishment is busy meeting high-ranking foreign guests that arrive one after another in Kyiv these days. 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