Finance Minister Serhiy Marchenko has called on Ukraine’s Western allies to accelerate the $50B loan to Ukraine, arguing that delays in arms deliveries have led to a growing budget deficit, forcing Kyiv to find money to pay military salaries.
The official said that the slow supply of weapons, especially from the US, increased military expenses by $12B. As a result, this year’s budget deficit will be slightly less than a quarter of GDP – about $43.5B. The costs of the war will be covered by a reduction in expenses, the sale of state assets, and tax increases.
Marchenko emphasized that the dangerous financial situation underscores the need for the US and other countries to provide more aid and hasten progress in providing the G7’s promised loan. Ukrainian government officials hope that at least part of the loan will go to military needs.