Government changed priorities of state expenditures due to delay in international aid

The Cabinet of Ministers of Ukraine has changed the order of financing state expenditures due to the difficult situation with public finances and delays in part of the planned international aid. First of all, funds will be directed to defense, social payments and salaries for public sector employees.

This was reported by Prime Minister Serhiy Koretskyi.

According to him, the government has decided to ensure priority financing of critical expenditures, and payments that can be postponed without threatening defense capability and social stability will be temporarily deferred.

The needs of the Defense Forces remain a priority, including monetary support for military personnel and support for their families. The state must also fund pensions, social payments and salaries of doctors, teachers and other public sector employees on time and in full.

All other expenditures that the government does not consider top-priority and critical may be suspended until funds are received from international partners.

The change in priorities comes amid a significant deficit in financing defense needs. Previously, Koretskyi said that Ukraine needs to find about 27 billion dollars for the corresponding expenditures. The government expects to receive about 7 billion dollars through savings, optimization and redistribution of internal resources.

Ukraine expects to attract another approximately 20 billion dollars together with international partners. These funds are needed primarily for the purchase of weapons and for the army, including drones, missiles and military equipment.

The prime minister also stated that the delay in external funding is partly due to the need for Ukraine to fulfill a number of obligations to its partners. By October 15, the government intends to adopt all decisions necessary to receive the already promised international financial support.

According to Koretskyi, this concerns 42 documents—government decisions, resolutions and other obligations. He also called on the Verkhovna Rada to promptly adopt bills that affect the receipt of external funds.

Earlier, the head of government warned that the situation with public finances remains difficult and Ukraine risks not receiving part of the international aid if necessary decisions are delayed. At the same time, the Ministry of Finance stated that it does not yet plan to sharply increase domestic borrowing in order not to raise the cost of servicing the public debt.