Ukraine's Fiscal Shortfall Reaches $42 Billion in 2024
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Kyiv, Jan 8 (NationPress) The annual budget shortfall of Ukraine has surged by approximately 33 percent in the previous year, totaling 1.77 trillion hryvnias (around $42 billion), as reported by the state-run news agency, referencing data from the central bank.
Even with this rise, the deficit was below the anticipated budget gap of 1.85 trillion hryvnias (approximately $43.8 billion), according to findings from the National Bank of Ukraine.
The report highlighted that a historic wave of foreign assistance in December enabled Ukraine to meet its state budget obligations and establish a liquidity reserve for early 2025, as detailed by Xinhua, citing the government-run news agency Ukrinform.
Key expenditure areas in Ukraine's budget for 2024 included defense and security, along with various social programs.
In the previous year, Ukraine secured $41.7 billion in international budget support.
Furthermore, the Ukrainian parliament endorsed the government's budget for 2025, which emphasizes military funding, social assistance, and economic recovery.
The budget allocated 2.23 trillion hryvnias (around $54 billion) out of a total budget of 3.6 trillion hryvnias (about $87 billion) for security and defense in 2025.
Projected revenues, excluding grants and other forms of international aid, are expected to reach 2.05 trillion hryvnias (approximately $49.6 billion) next year.
The budget also anticipates a GDP growth of 2.7 percent for the upcoming year, with an inflation rate of 9.5 percent.
Later in December 2024, Ukrainian Prime Minister Denys Shmyhal announced that the nation received $1 billion in financial assistance from the United States, utilizing frozen Russian assets.
"This marks the first installment of the planned $20 billion the US intends to provide by leveraging frozen Russian assets," Shmyhal communicated via a post on Telegram.
The Ukrainian Finance Ministry subsequently clarified that the funds were granted as part of the World Bank's Second Growth Foundation Development Policy Loan (DPL).
This US aid is a component of a larger commitment by the Group of Seven (G7) nations, which aims to provide $50 billion in support for Ukraine, financed through the proceeds from immobilized Russian assets.
Reports indicate that G7 countries have frozen around $300 billion of Russian assets following the Russia-Ukraine conflict.
