The Ukrainian government plans to shrink the state budget deficit to about 3 billion dollars per month in 2023, a move confirmed by the prime minister during discussions about the country’s fiscal outlook.
Officials indicate that the monthly deficit target is 3 billion dollars, reflecting an effort to stabilize public finances amid continuing economic pressures.
In 2022, international support played a significant role in covering a sizeable portion of budget expenditures, with estimates suggesting that aid covered as much as forty percent of the spending needs. A notable development for the upcoming period is the anticipated support from the European Union, including a loan valued at 5 billion dollars expected to arrive in September, followed by a grant of 3 billion dollars in October, which will be disbursed as part of the aid package.
The discussions highlighted ongoing diplomatic engagement with key European leaders on how the current year should be concluded and what funding opportunities may be available for the next year.
On a broader diplomatic track, a declaration around early September saw the European Union and Ukraine signing a package of agreements focused on customs and tax cooperation as well as the digitization of the economy, marking a milestone in economic integration and administrative reform efforts.
Earlier reports had indicated that the national budget envelope received a substantial inflow in August, with a portion of the funds coming in the form of grants from Western partners. This inflow is part of a wider pattern of international assistance intended to support public finances during a period of reform and reconstruction.