50.4% of all Ukrainian state spending, or 22.1% of GDP, will go to defense in 2024, according to the draft state budget approved by parliament this Thursday and which reveals that only slightly more half of all expenses52.8%, will be covered with the country’s own resources.
Currently, the country uses all its tax revenue and domestic debt to finance its huge army, while grants and loans from foreign partners, especially the EU, US and G7 countries, go to the compliance with the non-military obligations of the State.
Ukraine’s ability to raise funds for its state budget through taxes and domestic borrowing has reached the “limit”, according to the country’s finance minister, Sergiy Marchenkowho pointed out that a large part of the 27 billion budgeted would have to come from external sources.
“It’s a critical topic. “I don’t know how we are going to get this amount of money next year,” she said Wednesday in a debate in Ukraine’s parliament.
He explained to the parliamentarians that the State has not planned capital investments for 2024, being the defense of the country the highest priority.