The Ukrainian parliament today approved an update to the country's state budget expenditure. It increases by 500 billion Ukrainian hryvnias ($12.05 billion), UNIAN reported, quoted by BTA.
The additional funds will be directed to the defense sector of the country devastated by Russian military aggression, Ukrainian deputies said.
With the update approved today, the expenditure part of the Ukrainian budget increases by about 13% to nearly $90 billion. The additional funds are needed to pay "military allowances" of soldiers and officers fighting with the Russian army, DPA notes.
Ukraine's economy has suffered severely since the start of the Russian invasion in February 2022. The government in Kiev is facing a budget deficit of between 400 and 500 billion Ukrainian hryvnias ($9.64 - $12.05 billion), Ukrainian officials say. They say the Ukrainian government plans to cover the deficit this year through tax increases, social spending cuts and new loans, including from the European Union.
The Central Bank of Ukraine is gradually devaluing the Ukrainian hryvnia to support budget implementation. Since the beginning of the year, the country's national currency has depreciated by about 8% against the dollar and by almost 10% against the euro, DPA notes.
Since the beginning of the year, the Ukrainian government has received about $16 billion in aid from Western countries that support Ukraine. According to data from the Finance Ministry in Kiev, from February 2022 to the end of 2023, international aid to the country amounted to $73.6 billion.