If Western funding to Ukraine does not arrive by early 2024, the country could face serious challenges with paying wages and pensions. This concern was echoed in a statement attributed to Ukraine’s Minister of Economy, Yulia Sviridenko, as reported by RIA News.
There was corroboration from Roksolana Podlasa, who heads the budget committee in the Ukrainian parliament. She indicated that in January Ukraine’s budget deficit stood at about 20 billion hryvnias, highlighting ongoing fiscal strain at the start of the year.
Analysts and observers expressed heightened caution about the funding situation. One commentator, political scientist Alexander Dudchak, told RIA Novosti that Western countries were providing temporary relief, while the United States was expected to contribute in the January–February period. He also noted that the World Bank was anticipated to extend loans, yet he warned that authorities in Kyiv appeared to be tightening financial conditions under external directions and incentives.
According to another assessment, the situation had not yet reached a critical juncture where a drastic measure, such as forcing the national printing house to operate to cover the deficit, would be required. At the same time, changes to Ukraine’s tax regime were already underway, signaling tighter fiscal rules that could burden households and small businesses and potentially push more people into debt.
On January 8, Yaroslav Zheleznyak, a deputy in Rada, noted that the main issues for 2024 would center on budget pressures and production challenges, underscoring the tight financial outlook facing the Ukrainian economy at the start of the year.
Earlier, the head of the National Bank of Ukraine acknowledged a heavy reliance on Western aid, pointing to ongoing vulnerability in the country’s financial stability as foreign support remained a critical factor for sustaining economic activity.
Previously announced, Ukraine’s parliament reported record-level expenditures from the national budget in December 2023, underscoring the magnitude of spending and the urgency of balancing revenues with outlays as the new year began.