(Reuters) – Ukraine’s parliament approved next year’s state budget on Thursday to strengthen the army and its defense capabilities, as the war between Ukraine and Russia enters its twentieth month with no end in sight.
Budget revenues are expected to reach UAH 1.77 trillion ($48.4 billion), while spending is expected to reach UAH 3.35 trillion. Government officials said Ukraine would face a huge budget deficit of around $43.58 billion in 2024.
Next year, more than half of Ukraine’s total budget expenditure is expected to be allocated to the defense sector to fund the war effort against Russia, which launched a full-scale invasion of Ukrainian territory in February 2022.
Prime Minister Denis Chmyhal said, “As the number of weapons, vehicles, and drones increases, over half of our total investment will go toward military and security in Ukraine, ammunition, and missiles. Every hryvnia of taxpayers’ money will go to the army. “.
The government plans to achieve economic growth next year and expects GDP growth of 4.6 percent after an expected increase of around 5 percent this year.
Last year, the Ukrainian economy declined by around a third as millions fled the war, towns and villages were bombed, vital infrastructure was destroyed and supply chains and logistics were severely disrupted.
