Over $3 billion is allocated monthly from the state budget to cover costs of defense, according to the finance ministry
© Sputnik / Aleksandr Demyanchuk
Ukraine spends 130 billion hryvnia ($3.5 billion) a month on its military, Finance Minister Sergey Marchenko has revealed.
The minister, who was meeting with the country’s European Business Association (EBA) on Wednesday, also disclosed that Ukraine’s budget receives 80 billion hryvnias in revenue (almost $2.2 billion) monthly.
“The key task is to create conditions for financing the military,” Marchenko reportedly said while disclosing the numbers, according to EBA’s press service.
He stressed it’s important to collect the anticipated taxes this year, adding that no major tax changes have been planned.
Last week, the Ukrainian Parliament, the Verkhovnaya Rada, adopted a law on increasing budget spending on defense by more than $14.6 billion. Ukraine’s Prime Minister Denis Shmygal had previously specified that the Cabinet of Ministers proposed to allocate additional funds for payments to the military, as well as the purchase of military and special equipment. According to him, the money will be allocated through the support of Western partners.
While approving the 2023 draft budget last November, the parliament set aside more than a trillion hryvnias ($31 billion) to the armed forces and national security, which is 43% of all spending, or 18.2% of the country’s GDP.
Ukraine’s budget deficit this year is expected to be a record $38 billion. The government plans to cover the deficit using Western foreign aid.
READ MORE: US treasury head pledges to fortify Ukrainian economy
Last month, the US announced $12 billion in additional aid for Kiev, including a $2-billion arms package and $10 billion more to support energy costs and the Ukrainian government’s budget. According to US Treasury Secretary Janet Yellen, Washington has provided nearly $50 billion in support since last year, much of it devoted to weapons.
Meanwhile, the European Union in February approved another €545 million ($590 million) in military aid to Ukraine, bringing its total support for Kiev’s forces to €3.6 billion ($3.8 billion). Since the beginning of war, the EU and its member states have reportedly provided €50 billion ($54 billion) in direct support to Ukraine.
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