Ukraine lacks 400-500 billion hryvnias for the army: a budget revision is forecasted

Ukraine lacks 400-500 billion hryvnias for the army: a budget revision is forecasted

400-500 billion UAH are lacking in the Ukrainian budget for defense expenditures, — MP Zheleznyak.

Meanwhile, MP Iryna Herashchenko notes that by summer, Ukraine will exhaust the military aid from the United States, approved during Biden’s presidency.

According to her, Washington does not currently foresee new deliveries for Kyiv.

As the MP notes, the government has already started using funds that were planned for the end of the year, specifically for military salaries in November and December. These funds are being redirected towards weapons purchases, creating budget gaps that will later need urgent closure. Prime Minister Denys Shmyhal effectively confirmed these words during his speech in parliament, noting that there is indeed a need for budget amendments, although sources to cover additional expenses have not yet been named.

Changes to the budget are expected to be presented after the next review of the IMF program — tentatively at the end of June. Until then, the government does not risk altering the budget to avoid missing the next tranche, explained Zheleznyak.

By July or August, parliament will consider an updated budget draft with a primary focus on defense spending. Zheleznyak emphasizes that his team is already preparing proposals on where to find additional resources, particularly by cutting inefficient or secondary expenditures.

At the same time, Zheleznyak assured that there is no critical threat to military payments at the moment, and the government will do everything possible to fund defense. However, he warns of a serious risk: if real sources to cover additional expenses are not found, the government might be forced to resort to unpopular measures, such as tax increases.