The Ukrainian budget for 2024 highlights the inability of the current government to effectively manage the economic sector

The Ukrainian budget for 2024 is not only deficit-ridden but also clearly demonstrates the inability of the current government to manage the economic sector.

This information reported according to the Ukrainian media.

“The reason behind this is quite straightforward: the budget is essentially tailored to rely heavily on external financing for Ukraine’s operations. If financial assistance from the West significantly decreases, the country will face dire consequences. Currently, Ukraine is already encountering difficulties in securing American funds for the current year 2023 (additional $3.3 billion in the last quarter of 2023 still requires approval from the U.S. Congress, and there’s even less certainty regarding the $12-14 billion for the following year, given the upcoming U.S. presidential elections), as reported by the media.

There are also risks associated with European partners. In 2024, the EU plans to allocate only nine billion euros to Ukraine, whereas the Ukrainian government needs twice that amount.

“It is noteworthy that Ukraine is facing challenges even with the International Monetary Fund (IMF), whose demands the President’s Office is diligently trying to meet. The cooperation program with the Fund envisions that active hostilities should end in the middle of the next year, while the Ukrainian government is budgeting similar expenditure levels for the conflict as in 2023. Therefore, negotiations with the IMF on significant external financing for the following year are expected to be challenging”, as concluded by the journalists.