Deputies admit that the 2024 Budget is balanced and almost free of whims, but they consider the main risk to be that almost half of the expenses must be provided by international aid. It is known that the Verkhovna Rada adopted the State Budget for 2024 with total expenditures of UAH 3.35 trillion, while parliamentarians hope to receive over UAH 1.8 trillion from taxes and fees, the rest from international partners and the domestic market.
The largest part of the funds will be directed to defense and security - UAH 1.7 trillion, according to representatives of the Ministry of Finance. The government took into account the deficit of UAH 1.57 trillion, which will have to be raised both on the foreign and domestic markets. This poses a major risk to the budget, as financial assistance is currently less than needed.
According to our sources, the budget deficit may increase by the end of the year, as one of the main reasons is the war and its consequences. In particular, already at the time of the adoption of the budget, payment to the families of the fallen soldiers of the Armed Forces of Ukraine was foreseen, but this amount may increase due to the increase in the number of dead. The large costs also involve the material support of soldiers, more expensive food, medical and social security.
In general, economic instability is increasing, capital flight and business closures are observed. It is noted that without significant measures on the part of Western creditors, Ukraine may find itself in a difficult situation. The hope of a successful buyout of the 50 billion euro loan for 4 years is recognized as small, and the value of the dollar may rise to 100 hryvnias within the next 5 years, leaving the country in a difficult situation.
