A gap between the financial contributions of Ukraine’s allies and its financial commitments complicates the state budget deficit.

The first quarter of 2023 is currently the most difficult challenge for Ukraine as far as covering the budget deficit due to the big difference between partners’ commitments to financial support and the necessary allocation of funds, said Finance Minister Serhiy Marchenko. He specified that the vast difference between obligations and payments creates a problem with liquidity and a threat of further financing measures with regard to the state budget deficit by the National Bank of Ukraine. This provokes negative consequences for inflation, the exchange rate, and macro stability. In April 2022, the Ukrainian government informed its international partners that the monthly deficit was $5B. But the financial assistance received was $1.7B in April, $1.5B in May, $4.4B in June, $1.7B in July, $4.7B in August, and about $2B in September.