Ukraine collects war kitty of $50billion towards coming year of war with Russia
Ukraine collects war kitty of $50billion towards coming year of war with Russia
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Aiming to fortify its army and defenses as Kyiv fights Russia in a conflict that has lasted 20 months and shows no signs of abating, the Ukrainian parliament approved the country’s state budget for 2024 on Thursday.
A budget of 1.77 trillion hryvnias ($48.4 billion) is expected to be collected, while 3.35 trillion hryvnias will be spent. According to government officials, Ukraine will have a massive budget deficit of roughly $43.58 billion in 2024.
In order to finance the war effort against Russia, which launched a full-scale invasion in February 2022, the defense sector in Ukraine is scheduled to receive more than half of all budgetary expenditures next year.
“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% 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% after a nearly 5% 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, the government and analysts said.
(with inputs from agencies)
