Ukraine still needs 500 billion hryvnias to meet military needs in 2024- Denys Shmyhal

Source: Radio Svoboda

Ukraine’s 2024 budget faces a substantial shortfall of ₴500 billion (approximately $13.5 billion) due to eariler miscalculations about the war’s duration,  according to Ukraine’s prime minister Denys Shmyhal. Speaking to Radio Svoboda, he revealed the initial budget planning predicted the conflict would end by the summer of 2024 which leaves the government scrathing their heads about where to get money for this year’s military spending.

The ongoing mobilization efforts will require more funds. Shmyhal said that funding for each soldier amounts to ₴1.2 million ($32,000) annually, explaining the gap in finances as new recruits join the defense forces.

“The ₴500 billion shortfall we are facing is what our military needs to maintain operations through the end of this year,” Shmyhal added. This growing financial demand will factor in when the goverment works on Ukraine’s 2025 budget.  The negotiations about next year’s budget are “extraordinary complex” as Ukraine’s partners are not involved in direct funding of the country’s military needs.

Kyiv is exploring various financial avenues with  internal borrowing and new military taxes as possible scenarios. The government has also submitted a draft law to the Verkhovna Rada that can allow to seize some ₴50 billion in Russian assets to bridged the gap in the military budget and address other shortfalls.

The Ukrainian prime minister stressed that Ukraine has been financing its military independently which definitely putting a strain on the country’s broader financial strategy.