Ukraine launches strict austerity drive to address growing budget gap

Ukraine’s Cabinet is introducing strict austerity measures amid a budget deficit, Prime Minister Serhii Koretskyi said while addressing the Verkhovna Rada (parliament).

“The government is introducing a strict regime of budget savings on expenditures not allocated to defence needs. As a result, we have already identified 70 billion [hryvnias] in savings, which will be directed in full to defence needs,” Koretskyi said.

He stressed that despite the forced spending cuts, the state would fulfil all its social obligations to citizens.

The prime minister noted that the defence sector faces a $27 billion funding shortfall. He cited the rising cost of the war and partners’ failure to fulfil their commitments among the reasons for the deficit.

By Jeyhun Aghazada