Minister of Finance Serhiy Marchenko has announced the risks to financing the state budget in January-February 2024.
"We have risks in January and February. Unfortunately, in January-February, the decisions made by our partners are not enough (to finance the budget needs for this period - IF-U) for us to cope on our own. That is why we are currently using the Plan B mechanism," Marchenko said at the review of macroeconomic forecasts for 2024 by the Centre for Economic Strategies, Interfax-Ukraine reports.
The minister also added that the resources that can be brought closer will be pulled for January-February as much as possible. In particular, this includes the advance payment of dividends of state-owned companies, as well as an increase in borrowing in the domestic market.
According to Marchenko, the situation is not critical, but there is an understanding that during this period it is necessary to rely on domestic resources as much as possible.
Another potential risk for the next year is an increase in state budget expenditures for 2025.
"If there are no peculiarities, the situation is under control and we can finance everything. However, the biggest uncertainty for us is the security and defence sector. We cannot know in advance at what point something will be lacking there. There are too many questions about the effectiveness of the use of funds in this area," Marchenko said.
The minister added that Ukraine had provided for the maximum amount it could allocate to the defence and security sector in the law on the state budget for the next year.
· On 9 November, parliament adopted the state budget for 2024. The main item of expenditure is defence. A total of 22.1%, or UAH 1.69 trillion, will be allocated to the security and defence forces. Expenditures are also envisaged for the development of the defence industry: UAH 43 billion for the production of UAVs, as well as UAH 43 billion for the production of ammunition and weapons in Ukraine.
· The president signed the law on the state budget for 2024 only on 28 November, although he received the draft law for signature on 17 November.
· The first quarter may be difficult for the state budget, as there are risks of a delay in financial assistance from the West.
· The European Council will only consider providing €50bn to Ukraine next year. Hungary blocked its allocation at the summit in December.
· The $61 billion from the US will also be considered only next year, as the Senate has already gone on holiday.