The Ukrainian parliament approved the state budget for the upcoming year on Thursday, aiming to strengthen the army and its defensive capabilities as the war between Ukraine and Russia enters its twentieth month with no end in sight. Prime Minister Denys Shmyhal noted that "about 50 percent of our total spending will be allocated to defense and security in Ukraine, with increases in weapons, vehicles, drones, munitions, and missiles. Every hryvnia from taxpayers will go to the army."
The planned budget revenues are 1.77 trillion hryvnias (48.4 billion dollars), while expenditures are set to reach 3.35 trillion hryvnias. Government officials stated that Ukraine will face a significant budget deficit of around 43.58 billion dollars in 2024.
Next year, more than half of the total Ukrainian budget spending is allocated to the defense sector to fund the war effort against Russia, which launched a large-scale invasion of Ukrainian territory in February 2022. The government plans to achieve economic growth next year, expecting a 4.6 percent increase in GDP following an anticipated growth of about 5 percent this year.
Last year, the Ukrainian economy contracted by nearly a third due to the flight of millions from the war, bombings of cities and towns, destruction of critical infrastructure, and severe disruptions to supply chains and logistics.
