Rada declares budget crisis: money is only enough for priority expenses

Ukraine is facing an acute shortage of budget funds and currently cannot finance all necessary expenditure items. The available resource is primarily enough for the most priority state needs.

This was reported by Deputy Head of the parliamentary committee on finance, tax and customs policy Olha Vasylevska-Smahliuk.

According to the People's Deputy, the budget situation remains extremely tense, so the state has to determine the sequence of funding and postpone part of expenditures that are not priority.

The problem is not only related to domestic revenues, but also to the Ukrainian budget's dependence on international financing. Receiving part of the funds from the European Union, IMF and other partners is tied to Ukraine fulfilling a number of obligations and adopting necessary laws.

Earlier, Finance Minister Serhiy Marchenko warned that the budget has reached the limit of its capabilities. In case of delays in external financing, the government may need to postpone part of non-military expenditures. Among potentially vulnerable areas he mentioned certain payments at the local level.

Vasylevska-Smahliuk also previously reported that the defense budget alone retains a significant need for additional funding. At the same time, Ukraine must provide social expenditures, the operation of state institutions and other mandatory payments.

The difficult situation also persists in planning the 2027 budget. According to the Budget Declaration for 2027–2029, Ukraine will continue to need large-scale external support. The Ministry of Finance estimated the total external financing need in 2026–2029 at $145.9 billion.

The government expects, in particular, financing from the European Union. The base scenario for 2027 includes receiving about €45 billion within the framework of European support mechanisms for Ukraine.

At the same time, the final parameters of the state budget for 2027 still have to be considered in the Verkhovna Rada. During the parliamentary process, the volume of expenditures and individual budget programs may be revised.

Based on materials from: Olha Vasylevska-Smahliuk, Ministry of Finance of Ukraine