Government has begun gradually restoring suspended budget expenditures - Koretsky
The Cabinet of Ministers of Ukraine has begun gradually restoring funding for budget expenditures that previously had to be suspended due to a shortage of funds. This applies, in particular, to expenditures for the regions. Further resumption of payments will depend on the receipt of international financial assistance.
Prime Minister Serhiy Koretsky announced this on October 16 following the plenary week of the Verkhovna Rada.
According to the head of government, the legislative decisions adopted by the parliament open the possibility of receiving by the end of 2026 part of the international financing needed to cover the state budget deficit.
"We are gradually starting to release all those funds that were temporarily suspended", Koretsky stated.
The Prime Minister emphasized that this is only a partial restoration of funding, since all the necessary assistance from international partners is not yet guaranteed.
According to him, this week the parliament supported a number of important draft laws that allow the government to begin processing documents for receiving funds from the European Union and other partners.
Next stage will be submission of relevant requests to the European Commission and completion of approval procedures with EU member states.
Koretsky noted that the government is accelerating the necessary procedures so that international assistance arrives as soon as possible. At the same time, to receive funding in full, the Verkhovna Rada must adopt a number of decisions during the coming session weeks.
Separately, the Prime Minister assured that funding for the defense sector has not been halted.
"I can definitely say that there is no halt, no non-payments in the defense sector, as promised", Koretsky stated.
Budget restrictions led to payment delays
Recall that at the end of September the government introduced strict restrictions on state expenditures due to a lack of budget funds and delays in international financing.
Defense needs, pensions, social benefits and salaries of public sector employees remained the top priority. At the same time, part of capital expenditures, particularly on construction, reconstruction and repairs, were postponed.
As previously reported by "Kurs Ukrainy", as of October 12, the State Treasury Service had accumulated 46 billion UAH of unprocessed budget payments. Minister of Finance Serhiy Marchenko then stated that the government had postponed payments of approximately 39 billion UAH to the end of the year.
The restrictions also affected local budgets. The Association of Ukrainian Cities reported that starting from September 9, communities faced delays in payments even when funds were available in their own accounts.
According to the Association, problems arose with paying for fuel for utility and emergency services, works to eliminate the consequences of Russian shelling, preparations for the heating season, and ensuring the operation of critical infrastructure.
In early October, representatives of local self-government appealed to the government demanding payments be unblocked. Subsequently, the Cabinet of Ministers partially restored funding for certain measures to prepare critical infrastructure for winter.
Further recovery depends on EU assistance
On October 14-15, the Verkhovna Rada adopted a number of legislative decisions necessary for Ukraine to fulfill its commitments to international partners.
In particular, this refers to documents related to the Ukraine Facility program and other financial support mechanisms.
Earlier, "Kurs Ukrainy" reported that fulfillment of the relevant requirements is linked to receiving EU assistance worth up to 4.26 billion euros. However, to actually transfer the funds, the established procedures must be completed.
Koretsky did not specify which amount of suspended expenditures the government has already allowed to finance, which categories of payments will be restored first, or when the restrictions may be fully lifted.
Thus, today's statement indicates the beginning of gradual restoration of funding, but does not mean the full unblocking of all budget payments, particularly local ones.
Based on materials from: Serhiy Koretsky, Cabinet of Ministers of Ukraine