Ukraine’s parliament, known as the Verkhovna Rada has approved the state budget for next year.
Aiming to strengthen its army and defences as Ukraine fights against Russia, more than half of all Ukrainian budget spending for 2024 is planned for the defence sector to fund the war effort.
Budget revenues are set at 1.77 trillion hryvnias ($48.4 billion) while spending is planned at 3.35 trillion hryvnias.
Ukraine will face a huge budget deficit of about $43.58 billion in 2024, government officials said.
Lawmakers said that 276 deputies voted to support the budget, which also envisages higher spending for the education and health sectors next year.
After the vote, Ukrainian Prime Minister, Denys Shmyhal said, “The priorities are clearly set in the budget.”
He iterated, “All our internal resources will go so we can withstand and win over the enemy.”
“Practically 50% of our spending – for defence and security of Ukraine. There will be more weapons and vehicles, more drones, ammunition and missiles. Every hryvnia from a taxpayer will go to the army.”
Denys Shmyhal
Shmyhal also stated that the government planned to increase minimum wages and pensions to help millions cope with the rising cost of living during the war.
Moreover, Finance Minister, Serhiy Marchenko said that financial aid from Ukraine’s Western allies would be key to be able to cover the budget gap and pay for social and humanitarian spending.
The government had already received $35.4 billion this year and about $31 billion last year from its partners.
Marchenko acknowledged that donor fatigue had grown as the war dragged on. As such, getting foreign financial support next year could prove more challenging.
The government plans for the economy to grow next year, forecasting gross domestic product growth at 4.6% after a nearly 5% increase expected this year.
Last year, the Ukrainian economy shrank by nearly a third as millions of people fled the war, cities and towns were bombed, critical infrastructure damaged and supply and logistics chains severely disrupted.
With the war in its 21st month, businesses and people have adjusted to a new wartime reality.
However, government and analysts say that risks and uncertainty remain high.
Investment In Science Increased By More Than 20%
Oksen Lisovyi, the Minister of Education and Science, disclosed an increment in funds allocated to science development for next year.
He averred, “Modern war is clearly a technology war, and we need an advantage over the enemy here.”
“So, despite everything, we are significantly increasing the state budget for the development of science in 2024 – by more than 20%, compared to this year’s budget,” Lisovyi added.
The Minister said that a significant part of these funds will be directed to support the research of young scientists, the development of the system of basic financing of universities and scientific institutions, and the financing of priority scientific developments to solve key problems of the economy, society and defence.
According to Lisovyi, Ukrainians developed and modernised several models of unmanned aerial vehicles, including marine drones during the war. Ukrainian defenders were the first to use an FPV drone on the battlefield.
“These kamikaze drones are literally changing the situation in certain areas of the front today,” Lisovyi stressed.
Lisovyi also revealed that about 15% of the research infrastructure in Ukraine was damaged as a result of Russian aggression.
These are unique scientific equipment, research laboratories, centres for the collective use of scientific equipment, amongst others.
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