Ukraine’s Parliament
approved a State budget for next year, aiming to strengthen its Army and
defences as Kyiv battles Russia in a 20-month-old war that has no end in sight.
Budget revenues
are set at 1.77 trillion hryvnias ($48.4 billion) while spending is planned at
3.35 trillion hryvnias. Ukraine will face a huge budget deficit of about $43.58
billion in 2024, said government officials.
Next year, more
than half of all Ukrainian budget spending is planned for the defence sector to
fund the war effort against Russia, which launched a full-scale invasion in
February 2022.
“The priorities
are clearly set in the budget. All our internal resources will go so we can
withstand and win over the enemy,” Prime Minister Denys Shmyhal said after the
vote.
“Practically 50
per cent of our spending – for defence and security of Ukraine. There will be
more weapons and vehicles, more drones, ammunition and missiles. Every hryvnia
from a taxpayer will go to the Army.”
Shmyhal also said
the government planned to increase minimum wages and pensions to help millions
cope with the rising cost of living during the war.
Lawmakers said 276
deputies voted to support the budget, which also envisages higher spending for
the education and health sectors next year.
Finance Minister
Serhiy Marchenko said financial aid from Ukraine’s Western allies would be key
to be able to cover the budget gap and pay for social and humanitarian
spending.
The government had
already received $35.4 billion this year and about $31 billion last year from
its partners.
But getting
foreign financial support next year could prove more challenging. Marchenko
acknowledged that donor fatigue had grown as the war dragged on.
The government
plans for the economy to grow next year, forecasting gross domestic product
growth at 4.6 per cent after a nearly 5 per cent increase expected this year.
Last year, the
Ukrainian economy shrank by nearly a third as millions of people fled the war,
cities and towns were bombed, critical infrastructure damaged and supply and
logistics chains severely disrupted.
With the war in
its 21st month, businesses and people have adjusted to a new wartime reality.
However, risks and uncertainty remain high, said the government and analysts.
Reuters
