Ukraine’s state finances are in the very worst condition. Help us! — Finance Minister of Ukraine
Ukraine’s government spending exceeded revenues by about $2.7 billion in March, 2022 and Ukraine expects the gap to expand to $5-7 billion a month in April and May, 2022 because of the war. In the first two months of the year, there was a surplus.
“We are under great stress, in the very worst [financial] condition,” Serhii Marchenko, Finance Minister of Ukraine, said. “Now it is a question of the survival of our country.”
“If you want us to continue to fight in this war, to win this war… so help us,” Marchenko added.
The government decided to reduce state budget expenditures by more than $6 billion, but this is not enough, since revenues are only slightly higher than half of the pre-war revenues.
The state budget deficit was originally planned at 3.5% of GDP in 2022, but, according to Marchenko, it would grow many times over depending on the duration of the war.
At the same time, speaking about the allocation by the U.S. Congress of military and humanitarian assistance to Ukraine and other countries that suffered from the war in the amount of $13.6 billion, the minister stressed that Ukraine would not receive a single cent.
“This is not direct budget support. We cannot use it to replenish the deficit,” Marchenko said.