Delays in Western arms deliveries have led to a sharp increase in Ukraine’s budget deficit, – the Minister of Finance says

Delays in the delivery of Western weapons have led to a sharp increase in Ukraine’s budget deficit. Finance Minister Serhiy Marchenko has urged the acceleration of a $50 billion loan.

He shared this information with the Financial Times.

According to the minister, slow deliveries of weapons, particularly from the U.S., have contributed to an increase in military spending by $12 billion, as the missing weapons had to be purchased using state budget funds, which was not initially planned.

The increase of $12 billion means that this year Ukraine may face a deficit estimated by other government officials at just under a quarter of its GDP, or $43.5 billion, the publication notes.

In April this year, Congress approved $27 billion in direct military aid to Ukraine, but its distribution has been slow, Marchenko said.

“We still lack the necessary weapons, ammunition, and shells,” the minister stated.

He explained that the current situation means the country “will struggle to pay soldiers’ salaries,” and the delays in assistance have forced Ukraine to use funds that were set aside for late 2024 to “purchase necessary weapons and ammunition” earlier this year.

“Ukraine is in a very vulnerable position,” Marchenko added, noting that a $50 billion loan would be a “magic solution” that would allow the country to procure military materials and avoid falling into a dire financial situation, which would alarm creditors like the IMF.

Recently, MP Roksolana Pidlasa mentioned that if taxes are not raised, the military might be left without salaries as early as September.