KYIV (Multibagger) - Prime Minister Denys Shmyhal announced on Tuesday that Ukraine is in need of an additional $15 billion to address its budget deficit in 2025.
The total budget gap for next year is estimated to be $35 billion, with plans in place to cover $20 billion. In 2024, the deficit was around $38 billion, according to Ukrainian government estimates.
Shmyhal revealed that the government is considering tax increases and more borrowing on the domestic debt market to secure additional funds for the ongoing war against Russia. These proposals will be debated in Parliament in September.
As part of the fundraising efforts, the prime minister also committed to cracking down on the shadow economy and increasing tax revenues.
Since the start of Russia's full-scale invasion in 2022, Ukraine has received approximately $100 billion in financial support from its allies.
Analysis:
Ukraine is facing a significant budget deficit in 2025, requiring an additional $15 billion to cover the gap. The government's plans to address this deficit include tax increases, increased borrowing, and efforts to boost tax revenues. These measures are aimed at supporting Ukraine's ongoing conflict with Russia. The country has received substantial financial support from its partners since the start of the invasion in 2022. This situation highlights the importance of effective financial management and international support in times of crisis.