Ukrainian Parliament Greenlights 2024 Budget with Record-Breaking Defense Expenditures

Ukraine’s parliament approved a budget that includes unprecedented defense spending to help fight against Russia’s invasion.

MP Yaroslav Zheleznyak wrote on Telegram that 276 parliamentarians voted in favor of the budget, meeting the Verkhovna Rada’s Nov. 20 deadline.

Estimated budget revenues for next year see a Hr.22 billion ($610 million) increase, reaching Hr.1.768 trillion ($49 billion).

Expenditures for next year are nearly unchanged at Hr.3.35 trillion ($92.9 billion).

The state budget deficit is reduced by Hr.22 billion ($610 million) and will total Hr.1.57 trillion ($43.6 billion).

External borrowing has decreased by Hr.1,103.5 billion ($31 million), dropping from Hr.42.9 billion ($1.2 billion) to Hr.41 billion ($1.1 billion).

The law has adjusted the forecast for real GDP to 4.6 percent, down from the initial 5 percent, and the inflation forecast to 9.7 percent, compared to the initial 10.8 percent.

The forecasted dollar exchange rate is now Hr.40.7 per dollar, down from the earlier Hr.41.4 per dollar.

Looking ahead to 2024, defense needs take precedence in budget allocations, constituting approximately half of all expenditures.

As Roksolana Pidlasa, the head of the Budget Committee of the Verkhovna Rada, told Kyiv Post all Ukraine’s revenues are going toward defense, with everything else provided for by its allies.

The Ministry of Defense is set to receive Hr.1.155 trillion ($32 billion), with potential increases in future estimate revisions.

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Other allocations include Hr.102.2 billion ($2.8 billion) for the National Guard, Hr.89.5 billion ($2.5 billion) for the National Police, Hr.60.34 billion ($1.7 billion) for the state border service, Hr.18.07 billion for the GUR ($501 million), and Hr.5.96 billion ($165 million) for the Foreign Intelligence Service.

Additionally, the SBU will receive Hr.34.82 billion ($967 million), and the interior ministry staff will be allocated Hr.14.08 billion ($390 million).