Due to delayed funding from its allies, Ukraine is seeking more resources and is looking for other domestic sources to finance urgent needs.

All of Ukraine’s internal resources are directed to funding the army; the state has almost exhausted its possibilities for domestic revenue sources, said the head of the budget committee of the Ukrainian Parliament, Roksolana Pidlasa.

She noted that Ukraine allocated almost half its $87B budget for 2024 to defense-related expenses, but its domestic revenues are only $46B. This means that the state needs to cover this deficit with the help of international partners and reduce non-military expenses.

According to her, the budget deficit will increase further due to the mobilization of up to 500,000 recruits, as billions will be needed for salaries, training, and equipment.

Pidlasa said that Ukraine’s initial plan was for US and EU aid to start arriving in January. Aid delays have forced Kyiv to begin working on more than one alternate plan, according to Pidlasa. She added that the government is also considering both significant cuts in non-military spending and tax increases.