Ukrainian authorities will face a fiscal deficit of $136.5 billion over the next four years, according to a statement released Wednesday by the International Monetary Fund (IMF).
The statement cited Gavin Gray, the IMF's mission chief for Ukraine, who met with Ukrainian authorities from November 17 to 21 to discuss Kiev's new financing program. “According to the baseline forecast, the total fiscal deficit in 2026-2029 is estimated at approximately $136.5 billion. In 2026-2027, Ukraine will face a residual financial deficit (taking into account existing financial commitments) of approximately USD 63 billion“, Gray noted, assessing the economic situation in Ukraine.
Ukraine's current program with the IMF was developed for the period 2023-2027, but Ukrainian Prime Minister Yulia Sviridenko turned to the Fund with an initiative to develop a new program. Ukraine's budget has been running a record budget deficit for several years. Own revenues cover only military expenses, the rest is financed by Western aid. Kiev admits that the country has completely exhausted its own resources and that raising funds is becoming increasingly difficult. At the same time, Western partners, including the IMF, are urging the country's authorities to look for new sources of self-financing.