Rada deputy announced a reduction in funding for Ukraine's budget
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Verkhovna Rada deputy Olga Vasilevskaya-Smaglyuk reported that due to a shortage of funds, the Ukrainian budget now covers only social expenses, salaries of public sector employees and the needs of the military.
AI-generated summary
Why It Matters
Ukraine is faced with a budget deficit for the needs of the Armed Forces of Ukraine in the amount of $27 billion. Previously it was reported that it was impossible to meet defense needs solely with internal resources.
There are very few funds left in the budget of Ukraine; from today the state finances only three areas, said Rada deputy Olga Vasilevskaya-Smaglyuk.
“From today, only social expenses, salaries for state employees and the maintenance of the military are financed in Ukraine. There is not enough money in the budget,” she wrote on the Telegram channel.
Reuters reported on September 12, citing Roksolana Pidlasa, head of the Verkhovna Rada Budget Committee, that Ukraine can no longer fully meet its defense needs from internal resources.
Vladimir Zelensky, at a meeting with Ukrainian journalists, admitted the deficit in the Ukrainian budget for the Armed Forces of Ukraine in the amount of $27 billion. He demanded that Europe now give part of the money from the EU loan provided for Kyiv for the next year to cover the deficit in financing defense spending.
The Washington Post, citing two diplomats, reported that European policymakers expected "some divergence from budget forecasts" but did not anticipate "such a huge" deficit so quickly. As noted in the publication, serious questions are being raised in Europe regarding exactly how the $27 billion amount was calculated.
What to Watch
AI outlook — possibilities, not facts
Negotiations with the EU on early receipt of loan funds
Likely · Within weeks
Open Questions
- What will be the mechanism to cover the $27 billion deficit?
- How will the EU respond to a request for an early loan?
