Ukraine is facing a budget deficit of 15 billion dollars
Acknowledging the governme’s budget deficit in 2025, the Prime Minister of Ukraine announced that he will use the profits from frozen Russian assets to compensate for this crisis.
According to Isna, the Prime Minister of Ukraine, Denis Shmigal, announced this evening, Tuesday, that the coury is facing a budget deficit worth 15 billion dollars in 2025.
He said: “There is an unmet need of about 15 billion dollars for next year.”
According to the report of the Russian News agency “TASS”, Shmigal added that Kiev expects to compensate this budget deficit by receiving $50 billion from the profits from frozen Russian assets in the accous of the G7 couries.
He also noted that Ukraine faces an urge need to find 500 billion hryvnias (about $12.1 billion) by the end of 2024 to ensure its defense capability.
“We now have a fundameal need to raise additional money for our defense capabilities,” the Ukrainian prime minister said. This amou is hundreds of billions of hryvnias. Proposals for a tax of 500 billion hryvnias have been submitted to the parliame.
Schmigal clarified that the 500 billion hryvnias are esseial expenditures allocated to defense measures and do not include funds needed to finance other governme needs.
He also said that since February 2022, when the war began, Ukraine has received more than $100 billion from Western partners.
He poied out: “We have been able to receive more than 100 billion dollars in two and a half years with the initiatives of the Preside (Zelensky), actions of the Parliame and the governme.
Ukraine has run a record budget deficit for two consecutive years and expects to cover most of it with help from its Western partners. This budget deficit will reach 43.9 billion dollars by 2024. Meanwhile, in the West, the allocation of new aid packages comes after lengthy debates.
Earlier, the preside of Ukraine, claiming that his forces are advancing on Russian soil, said that Kiev hopes that the billions of dollars earmarked for war actions will be realized.
Some of the discussed funds are supposed to be provided from the income from Russian state assets; Assets that Russia has strongly warned against any misuse, and in addition, the Kremlin considers the injection of this amou of financial resources io the Ukrainian army to prolong the war and increase the suffering of civilians.
Ukrainian Preside Volodymyr Zelenskyy said in a video speech that there have been many political announcemes from Kyiv’s partners and it is expected that there will be many more. “But we need a real mechanism,” he stressed.
Ukraine has repeatedly stressed that it needs the income from frozen Russian assets to defend itself against Russia. Meanwhile, the Ministry of Foreign Affairs of Russia emphasized today (Thursday) referring to the financial support and weapons of the West to Ukraine, that the financial injection to Kiev helps to iensify the conflict in Ukraine.
According to the ministry’s stateme, “the injection of funds io the military machine of the Kiev regime will push Zelensky’s jua to further adveures, help escalate the conflict, and eliminate the possibility of a political and diplomatic solution.”
Zelensky stressed: “The releva negotiations have been going on for a long time and we finally need to make a decision.”
Seven major Western industrialized nations, known as the Group of 7, agreed on new financial aid to Kiev at their summit in June. A generous $50 billion loan is to be financed with profits from frozen Russian assets.
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