Ukraine Plans to Increase Defense Spending in 2024

The Ukrainian government approved the draft budget for the upcoming year on Friday, with plans to increase spending in the defense sector and relying on continued financial support from the West to cover the expected deficit. The 2024 budget draft anticipates a deficit of 1.548 trillion hryvnias (42 billion dollars), or about 20.4% of the GDP. More than half of the total planned budget expenditure, or 1.7 trillion hryvnias, will be allocated to the defense sector to fund the war effort against Russia, which began its large-scale invasion in February 2022. Prime Minister Denys Shmyhal stated, "The main focus of this budget draft is on the defense and security of our country." He wrote on the Telegram app: "This amount (defense spending) increases by 113 billion hryvnias compared to this year. There will be more weapons and equipment... more drones, munitions, and missiles." The Ministry of Finance announced that defense spending is expected to exceed 21% of GDP. The budget includes 48.1 billion hryvnias for the purchase of drones, which both sides have widely utilized in the ongoing conflict for nearly 19 months. Finance Minister Serhiy Marchenko expressed hope for continued Western financial support for the country. Ukraine has already received foreign aid totaling approximately 62 billion dollars since the onset of the conflict with Russia last year.